Set Up a Trust in Malaysia

Updated on Saturday 16th September 2017

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Companies incorporated in Malaysia can be registered as trusts, according to the eligibility criteria and the laws in force. The trust can be created for several purposes, including investment, property or insurance.

In order to set up a trust in Malaysia, founders must observe the Trust Companies Act. One of our lawyers in Malaysia can give you more details on this law and how the terms and conditions apply to investors and trust owners.

Opening a trust in Malaysia

A trust in Malaysia is incorporated as a public company and registered with the Registrar of Companies. The Trust Companies Act sets forth a number of conditions in order for a company to qualify as a trust:
- it must serve one of the approved purposes (family, investment, insurance, charitable, special, etc.);
- has a minimum authorized capital;
- part of the said capital has been paid up in good faith;
- the company has a duly appointed Board of Directors and is able to meet its obligations.

When registering the company as a trust in Malaysia, the applicant must provide several filled in forms, the Articles of Association, details regarding the company directors and shareholders, and other documents. One of our attorneys in Malaysia can help you make the submission with the Registrar. Should the documents be in order, the Registrar will request further statements from the company director. Other conditions for the application may exist and it is advisable to seek professional aid before taking these steps.

Trust management and taxation in Malaysia

Trusts in Malaysia are subject to taxation on the income derived from the country. The tax year is the same as in the case of a limited liability company. The standard corporate income tax rate in Malaysia is 24%.

Investment trusts and property trusts in Malaysia are suited for those investors who want to diversify their investment portfolio and also secure their assets. Individuals who are interested in the wellbeing of their family in Malaysia also have options for securing the financial well-being of their children, for example, by setting up a special child trust, with fewer expenses than a property trust, for example.

One of our attorneys in Malaysia can give you complete information on opening a company that acts as a trust.

Contact us for more details on the Trust Companies Act and specialized legal advice.



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