A Foundation or Yayasan can be registered with Companies Commission of Malaysia (“CCM”) as a company limited by guarantee, which is regulated by the Companies Act 2016. A company limited by guarantee is a public company incorporated with the principle liability of members is limited by the constitution to such amount as the members undertake to contribute to the assets of the company if the company is wound up.
A Foundation or Yayasan can only be formed exclusively for charitable purposes without any profit oriented such as:
- Providing recreation or amusement;
- Promoting commerce and industry;
- Promoting art;
- Promoting science;
- Promoting religion;
- Promoting charity;
- Promoting pension or superannuation schemes; or
- Promoting any other objects useful for the community or country such as environment, health, education, research, social, sports etc.
A Foundation or Yayasan intends 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 CCM and the proposed Foundation or Yayasan must have an initial fund amounting to RM1 million cash.
Once the Minister approves the use of the word “Foundation” or “Yayasan”, the proposed Foundation or Yayasan can only proceed to submit the incorporation documents to CCM and if CCM is satisfied that all information provided is complete and complied with the required procedures, a Notice of Registration will be issued.
Need more information? Feel free to contact Roundtable Consultancy, we will be happy to explain to you in more details on the incorporation of a Foundation or Yayasan under the Companies Act 2016.
