Foundations in Malaysia are registered under either of the following three agencies:

• Companies Commission of Malaysia (SSM) – as Companies Limited By Guarantee (CLBG) 
• Labuan Financial Services Authority (FSA)
• Jabatan Perdana Menteri (JPM) – Bahagian Hal Ehwal Undang-Undang

Note: Only companies with the word “Yayasan” or “Foundation” from the SSM website are covered in this report. For the list from Labuan FSA and JPM, all companies were covered.

In Malaysia, there are several types of organizations that are commonly used for social welfare and community development activities. These organizations include NGOs, foundations, and societies. While they share similar goals of serving the community, there are some key differences between them.

NGOs, or non-governmental organizations, are typically independent organizations that operate without government interference or control. They are usually formed by individuals or groups with a common interest or goal, and they often rely on donations from individuals or corporations to fund their activities. NGOs in Malaysia are registered under the Registrar of Societies or the Companies Commission of Malaysia.

Foundations, on the other hand, are usually set up by wealthy individuals or corporations to support specific causes or social welfare activities. They are often funded by an endowment or a pool of assets, which is managed by a board of trustees. Foundations in Malaysia are usually registered under the Companies Commission of Malaysia.

Societies, also known as associations, are organizations that are formed to promote a specific interest or activity. They are usually registered under the Registrar of Societies in Malaysia and are required to have a constitution and governing body. Societies can be formed for a wide range of activities, such as sports, culture, or education.

One key difference between these organizations is their legal status. NGOs and societies are registered under the Registrar of Societies, while foundations are registered under the Companies Commission of Malaysia. NGOs and societies are required to submit annual reports and financial statements, while foundations are required to submit annual returns to the Companies Commission.

A. If registered with SSM under the Companies Act 2016, you would need to comply with requirements as summarized below:

• The foundation’s name must not be identical or too similar to that of an existing foundation or company.
• Foundations that intend to use the word “Yayasan” or “Foundation” in its name must apply to Ministry of Trade Cooperatives and Consumerism (“Minister”) for approval in order to use the said word and omit the word “Berhad” or “Bhd” from its name. The basis to support the approval for the use of the said name are that the complete documents have been submitted to SSM and the proposed Foundation or Yayasan must have an initial fund amounting to RM1 million cash.
• The foundation must have a registered office in Malaysia.
• The foundation must have a constitution that outlines its objectives, governance structure, and rules for distributing its assets.
• If the foundation is established for a specific purpose, such as religion or education, it must obtain approval from the relevant government agency.
• The foundation must maintain proper accounting records and must submit an annual report and audited financial statements to the Registrar of Trustees.
• See process here
•  

B. If registered with BHEUU under the Prime Minister’s Department:

• Foundation or Yayasan incorporation application materials must be submitted to the Legal Affairs Division of the Prime Minister’s Department for approval.
• See process here

C. If registered with Labuan FSA:

• Specify required information about the foundation, including the name of the foundation, name and address of the founder, purpose of the foundation, identity of the beneficiary and duration of the foundation.
• See process here

Source: Azmi Law | Kensington Trust