Open a Foundation in Malaysia

Updated on Wednesday 20th September 2017

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A foundation is used for the purpose of funding a good cause, like helping special categories of individuals. In most cases, a trustee or director manages the programs.

Investors who want to open a foundation in Malaysia will need to observe the country’s rules and regulations for setting up a charity organization. One of our lawyers in Malaysia can give you information about the liabilities and legal aspects when setting up this type of legal entity.

Foundations in Malaysia

Foundations are charitable entities incorporated for the purpose of providing aid or relief to certain categories of individuals or groups. It can be set-up using an initial donation made by the investor in Malaysia and later set-up a charity fund collection program, which will help it maintain a certain level of funds through periodic donations. 

A charitable foundation can be set-up in Labuan by following the provisions of the Labuan Foundations Act. Another option is to open a Labuan Islamic Charitable Foundation, which is set-up in accordance with the Sharia law.

One of the experts at our law firm in Malaysia can answer any questions on the Labuan Foundations Act and the establishment of a foundation or a trust in the country.

Opening a Malaysian foundation

A Malaysian foundation can take the form of a charitable trust or a company limited by guarantee. This type of establishment in Malaysia will have a founder, a secretary and council members. The foundation will have a set of constitutive documents, the Articles of the Foundation. The foundation will be able to hold assets both offshore and in Malaysia. There are no restrictions for non-residents who want to set up a Labuan charitable foundation.

One of our attorneys in Malaysia can help you with detailed information on the set-up process for a foundation and the differences between opening this type of legal entity and a limited liability company.

You can contact our office in Malaysia for detailed information on the particularities of a Malaysian foundation, its taxation and the conditions for using it for different charitable purposes.



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