In an effort to enhance transparency and regulatory compliance, SSM has introduced new requirements for lodging Beneficial Ownership (BO) information alongside annual returns. As outlined in Practice Directive No. 7/2021—published on the SSM website and revised on December 1, 2024—these requirements provide guidance on how companies must submit BO information when filing their annual returns under Sections 68 and 576 of the Companies Act 2016. This update ensures that companies maintain accurate and up-to-date ownership records, aligning with Malaysia’s broader corporate governance framework.
Starting from December 1, 2024, all companies must attach an annexure of BO information when submitting their annual returns. This requirement applies to both:
- Local companies filing under Section 68 of the Companies Act 2016.
- Foreign companies filing under Section 576 of the Companies Act 2016.
Where and How to Lodge BO Information
To facilitate compliance, BO information must be lodged digitally using one of two systems:
- For annual returns – Companies must submit their returns and the accompanying BO annexure through the Malaysian Business Reporting System (MBRS) Portal.
- For updates or changes to BO information before annual return lodgment – Any changes to BO details must be submitted through the Electronic Beneficial Ownership System (e-BOS) before filing the annual return.
This means companies cannot simply update BO information when submitting their annual return; any updates must be lodged separately via e-BOS first.
Why Is This Important?
The new requirement ensures that BO records remain current and accurate, preventing discrepancies in corporate ownership structures. It also strengthens corporate governance by aligning with the Guidelines for the Reporting Framework for Beneficial Ownership of Companies, which took effect on April 1, 2024.
Additionally, companies that fail to comply with the directive may face regulatory scrutiny or penalties, particularly if ownership transparency is compromised.
To avoid potential issues, companies should:
- Review their BO information regularly.
- Lodge any updates via e-BOS before submitting their annual return.
- Ensure all required documents are filed correctly through MBRS 2.0.