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Champion Society by Starting a Non-profit Organization in Malaysia
Offer a helping hand to those in need by starting a non-profit organization in Malaysia. 3E Accounting offers a quick 101.
Starting a non-profit organization in Malaysia is an honourable goal many aspire towards. Charity in society is an essential way to ensure that the community can sustain itself. Doing charitable works also foster a sense of personal well-being and achievement.
Malaysia has seen a considerable rise in Non-Profit Organizations (NPOs), Non-Governmental Organizations (NGOs) and Social Enterprises (SE). They are established under the charitable or social sector (after public and private sector). However, there is still a great deal of ambiguity with regards to rules and regulations in this area. 3E Accounting is ready to help you realize your NPO dreams and turn it into a legacy.
The Umbrella of Charity
When it comes to starting a non-profit organization in Malaysia, there is a lack of coherence. The legislation is still generally piecemeal and administered independently. To date, there is no assigned statutory body that regulates charitable organizations in Malaysia.
Some NPOs are governed by the Federal Government (e.g. National Cancer Council Malaysia). Others are supervised by the relevant states (e.g. religious charities). Generally, a state will have exclusive governance over its charities.
In Malaysia, the type of NPOs, NGOs and SEs include:
- Trust Fund
- Companies Limited by Guarantees
- Society or Organization
They fall under the broad, umbrella-definition of charities and charitable works. They are generally governed by two bodies:
- The Registry of Societies (ROS) – or Jabatan Pendaftaran Pertubuhan Malaysia (JPPM) which regulates NPOs established under the Societies Act 1966.
- The Companies Commission of Malaysia (CCM) – or Suruhanjaya Syarikat Malaysia (SSM) which regulates NPOs incorporated under the Companies Act 1965.
Applications can also be found on the Jabatan Kebudayaan & Kesenian Negara (JKKN) website. Each category has its own set of rules and regulations.
NPOs registered under CCM have structured financial statement and auditing requirements under the Malaysian Financial Reporting Standards (MFRS). NPOs established under ROS are only encouraged to adhere to these standards.
NPOs in Malaysia with charity status can apply for tax exemptions from the Inland Revenue Board or Lembaga Hasil Dalam Negeri (LHDN). Regulated under the Income Tax Act, charitable activities include relief of poverty, promotion of religion, education matters as well as aims that benefit or aid the local community.
Charity Begins With the Right Partnership
Starting a non-profit organization in Malaysia may seem like an uphill task. The lack of uniformity, proper laws and an established governing body can be a deterrent. However, if you have a passion for non-profit works, 3E Accounting has the expertise to get your passion working for you. With 3E Accounting’s help, you don’t have to miss out on the best opportunity of your lifetime.