A Foundation, commonly known as a “Yayasan” in Malaysia, may be established through the incorporation of trustees under the Trustees (Incorporation) Act 1952 [Act 258] and registered with the Legal Affairs Division, Prime Minister’s Department (Jabatan Perdana Menteri – JPM). This structure is commonly used for charitable, educational, religious, social and other approved non-profit purposes.

Unlike a company incorporated under the Companies Act 2016, this type of Foundation is formed through the incorporation of its trustees. Once incorporated, it becomes a body corporate with a separate legal identity, allowing the Foundation to hold and manage assets in its own incorporated name.

The Foundation is generally governed by its Trust Deed, which sets out its objectives, trustee structure, powers and the manner in which its funds and activities are managed. The trustees are responsible for ensuring that the Foundation operates in accordance with its approved objectives and applicable requirements under Act 258.

The incorporation process involves the submission of prescribed documents and information relating to the Foundation, its objectives, trustees and proposed governance structure for consideration by BHEUU. Approval is subject to the applicable requirements and assessment by the relevant authority.

Once incorporated, the Foundation is also subject to ongoing compliance requirements, including the submission of annual activity reports and audited financial statements. This structure provides a recognised legal framework for organisations carrying out charitable and other approved activities with greater continuity and accountability.