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Charitable Trusts



Charitable Trusts in Malaysia


Charitable trusts are a type of legal arrangement where assets are held by a trustee for charitable purposes. They are a popular way for people to give back to their communities and support causes that they believe in.


In Malaysia, charitable trusts can be established under the following three statutes:


  • Companies Act 2016: A charitable trust can be established as a company limited by guarantee. This type of company has no shareholders and is managed by a board of directors.

  • Trustee Act 1949: A charitable trust can be established under the Trustee Act 1949. This type of trust is governed by a trust deed, which sets out the terms of the trust and the powers of the trustees.

  • Waqf Act 2013: A charitable trust can be established as a waqf. A waqf is a Muslim endowment, which is an asset that is dedicated to charitable purposes.

Benefits of Establishing a Charitable Trust in Malaysia


There are several benefits to establishing a charitable trust in Malaysia, including:


  • Tax benefits: Charitable trusts are exempt from income tax and capital gains tax.

  • Perpetual existence: A charitable trust can continue to exist in perpetuity, which means that your charitable giving can have a lasting impact.

  • Flexibility: A charitable trust can be structured to meet your specific needs and goals.


How to Establish a Charitable Trust in Malaysia


The process of establishing a charitable trust in Malaysia can be complex, so it is important to seek legal advice. However, the general steps involved are as follows:


  1. Choose the type of trust: Decide whether you want to establish your trust under the Companies Act 2016, the Trustee Act 1949, or the Waqf Act 2013.

  2. Draft a trust deed: This document will set out the terms of the trust, including the purpose of the trust, the beneficiaries of the trust, and the powers of the trustees.

  3. Register the trust: This will depend on the type of trust you choose. For example, if you are establishing a company limited by guarantee, you will need to register the company with the Companies Commission of Malaysia.

  4. Appoint trustees: Choose responsible and trustworthy individuals to serve as trustees of your trust.


Charitable Trusts in Malaysia


Charitable trusts can be a powerful tool for making a difference in the world. If you are thinking about establishing a charitable trust in Malaysia, be sure to do your research and seek legal advice.


How Bestar Can Help Charitable Trusts in Malaysia


Bestar is a leading provider of corporate secretarial and accounting services in Malaysia. We offer a wide range of services to charitable trusts, including:


1. Setting Up a Charitable Trust:


  • Professional advice: Bestar's consultants can advise you on the legal requirements for setting up a charitable trust in Malaysia. We can also help you draft the necessary documents, such as the constitution and the memorandum of association.

  • Company registration: Bestar can register your charitable trust with the Companies Commission of Malaysia (SSM). They can also help you obtain the necessary licenses and approvals from the relevant government authorities.

2. Accounting and Auditing:


  • Bookkeeping: Bestar can maintain your trust's financial records, including income and expenditure statements, balance sheets, and cash flow statements.

  • Tax preparation: Bestar can prepare your trust's tax returns and ensure that you are compliant with all applicable laws and regulations.

  • Auditing: Bestar can provide independent audits of your trust's financial statements. This can help to ensure the accuracy and reliability of your financial reporting.

3. Other Services:


  • Payroll: Bestar can manage your trust's payroll, including calculating salaries, wages, and other deductions.

  • Human resources: Bestar can provide human resources support, such as recruitment, onboarding, and training.

  • Compliance: Bestar can help you comply with all applicable laws and regulations, including the Companies Act 2016, the Income Tax Act 1967, and the Waqf Act 2013.

Benefits of Using Bestar:


There are several benefits to using Bestar to help you manage your charitable trust in Malaysia, including:


  • Expertise: Bestar has a team of experienced professionals who are knowledgeable about the legal and regulatory requirements for charitable trusts.

  • Efficiency: Bestar can help you save time and money by taking care of the administrative tasks involved in running a charitable trust.

  • Compliance: Bestar can help you ensure that your trust is compliant with all applicable laws and regulations.

  • Peace of mind: Bestar can give you peace of mind knowing that your trust is being managed by a reputable and experienced organization.


How to Get Started:


If you are considering using Bestar to help you manage your charitable trust in Malaysia, you can contact us for a free consultation. We will be happy to discuss your specific needs and recommend the best services for you.


Bestar can be a valuable resource for charitable trusts in Malaysia. Our expertise, efficiency, and compliance-focused approach can help you save time and money while ensuring that your trust is managed effectively.


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