In Malaysia, the Companies Commission of Malaysia (SSM) requires companies to identify and report their beneficial owners — the individuals who ultimately own or control a company, even if their names do not appear on official documents like the register of members.

This is to promote transparency, prevent money laundering, and ensure that the true decision-makers behind a company are known. Beneficial ownership can be held directly (e.g., listed as a shareholder) or indirectly (e.g., through another company, agreement, or nominee).

SSM’s guidelines set out six criteria to help companies determine who qualifies as a beneficial owner, based on ownership percentage, voting rights, ability to control decisions, or influence over the board.

Criteria for Determining Beneficial Ownership

Criteria	What it Means
A	A person or company owns 20% or more of the company’s ordinary shares, directly or indirectly. Includes joint ownership, agreements, or nominee arrangements.
B	A person or company owns 20% or more of the company’s voting shares, directly or indirectly. Includes joint ownership, agreements, or nominee arrangements.
C	A person, even if not a shareholder or director, has the real power to control the company or its directors, formally or informally. Their suggestions are always followed.
D	A person has the power to appoint or remove directors who control most votes at board meetings, directly or indirectly.
E	A person has an agreement with another shareholder that together they control most of the voting rights.
F	Even with less than 20% of shares or voting rights, a person still has significant influence or control over the company.

** One shareholder can meet more than one (1) criteria at the same time.
Example — a person can fall under both Criteria A and B simultaneously

Comparison of Criteria

Criteria	Focus	Ownership Requirement	Other Notes
A	Shareholding	20% or more of ordinary shares	Referring to ordinary shares based on Register of Members ("shareholding")
B	Voting Shares	20% or more of voting shares	Referring to voting shares/voting rights as defined in the constitution
C	Effective Control	No % required	Person’s advice is always followed, even if they have no shares
D	Appoint/Remove Directors	No % required	Can appoint/remove key directors, even if they have no shares
E	Voting Control via Agreement	Depends on agreement	Control comes from an agreement with others; generally through Nominee Shareholder Agreement
F	Significant Influence	Less than 20% of shares/votes	Still has real control or influence

Who Can Access Beneficial Ownership Information

Beneficial Ownership (BO) information can only be accessed by the following individuals or groups:

• Beneficial owner — only relating to their own information;
• Person authorised in writing by the beneficial owner — only relating to their information;
• Any reporting institution carrying on any activity listed in the First Schedule to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613);
• Bank Negara Malaysia as the competent authority under Act 613;
• Any enforcement agency in Malaysia under Act 613;
• Ministry of Finance in carrying out Government procurement functions.

Please refer to: Companies (Access To The Register And Information Relating To Beneficial Ownership) Regulations 2025

When to Update Beneficial Ownership Details to SSM (SDN BHD)

• Within 14 days from the date the beneficial ownership information is recorded in the register of beneficial owners.
• Within 14 days from the date of any changes to the beneficial ownership information.
• Lodge annual return together with the beneficial ownership information not later than 30 days from the anniversary of its incorporation date.