Under Malaysia’s Companies Act 2016 and Limited Liability Partnerships Act 2012, a beneficial owner (BO) is a real person (not corporate entity) who owns or controls a company or partnership, even if their name isn’t on the official share register.
Both Acts require businesses to take reasonable steps to identify, record, and report their beneficial owners to SSM according to these dates, failing which a late lodgement fee may apply:
- For companies: Mandatory submission to SSM began on 1 April 2024, and free lodgement has ended on 30 September 2024.
- For LLPs: Mandatory submission began on 1 May 2025, with free lodgement until 31 October 2025.
There are no exemptions to this requirement, and failure to declare or update BO information is a statutory offence that can carry a fine of up to RM20,000, and for continuing offences, up to RM500 each day the offence continues.
For business owners, partners, and company officers, this article explains the essentials of BO ownership under Malaysian law and steps to remain compliant.
Who must declare beneficial ownership?
ALL companies incorporated under the Companies Act 2016 and LLPs registered under the Limited Liability Partnerships Act 2012 are required to declare beneficial ownership.
Purpose of beneficial ownership declaration
This requirement is part of the Malaysian government’s effort to:
- prevent money laundering, terrorism financing, and tax evasion, and
- increase corporate transparency
It aims to prevent businesses from being used to obscure real ownership or for illicit activities.
BO qualification criteria
Under current SSM guidelines for companies, a person is considered a BO if they meet any of the following, whether directly or indirectly:
- Owns more than 20% of shares
- Holds more than 20% of voting rights
- Has ultimate control over management or the board
- Has the right to appoint or remove a director(s) who holds the majority of the voting rights
- Has control over majority voting rights, or
- Has less than 20% of shares but exercises significant control
For example, if shares are held in someone else’s name (as in a nominee structure), you are still legally required under Malaysian law to declare your status as the beneficial owner.
For LLPs, a full reporting guideline hasn’t been released yet, but the practice note issued by SSM outlines the mechanism for BO lodgement.
Is BO information private?
Not entirely.
Unlike company profiles, BO information is not publicly searchable. To obtain it, the requestor must obtain written authorisation from the specific company or LLP whose BO details are being sought.
The beneficial owner may have influence as to whether that authorisation is granted, provided they retain control over the nominee or entity, and the arrangement is properly documented.
Still, the information lodged with SSM is not truly confidential as access may be granted to Bank Negara Malaysia, enforcement agencies, and relevant government bodies, especially for anti-money laundering or procurement purposes.
SSM may request additional proof (i.e., such as identification or evidence to verify authenticity of the authorisation letter) to support the purchase application, but this is at SSM’s full discretion and not an obligation.
A comprehensive guide to purchasing BO information can be found in SSM’s website here and Companies (Access To The Register and Information Relating to Beneficial Ownership Information) Regulations 2025.
Implications for businesses in Malaysia
If you are a BO, or your company involves any BO, then you should make the necessary declarations online through SSM’s e-BOS portal.
With the risk of an added RM500 for each day the matter is delayed, the sooner the better!
