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How can I transfer shares in Malaysia?

Have you ever wondered how to transfer shares in Malaysia? You can sell your stake in a company or pass ownership to someone else. Whatever the reason, understanding the rules and costs involved in share transfers can be a daunting task. But fear not! In this blog post, we’ll guide you through everything you need to know about transferring shares in Malaysia, from legal requirements to fees. 

What are the rules for the transfer of shares?

Several laws and regulations govern the process of transferring shares in Malaysia. First and foremost, the Companies Act 2016 sets out the legal framework for share transfers. Under this act, a shareholder can transfer their shares to another person or entity with the agreement of the company’s directors.

Before any transfer can take place, several steps must be followed. The completed form should then be submitted to the company along with other relevant documents, such as board resolutions or share certificates.

It’s worth noting that some companies may have additional rules regarding share transfers outlined in their Articles of Association or shareholders’ agreements. These rules may relate to pre-emption rights (the right of existing shareholders to buy new shares before they are offered to others) or restrictions on who can own shares in the company.

If you’re looking to transfer shares in Malaysia, it’s important to familiarize yourself with these legal requirements and any specific rules set out by your company. Doing so will ensure a smooth and hassle-free transaction for all parties involved!

What are the costs of a share transfer?

When transferring shares in Malaysia, there are certain costs and expenses you need to considered. First, stamp duty must be paid on the share transfer agreement. The rate is 0.3% of the consideration or value of the shares transferred, whichever is higher.

Legal fees may also be involved if you choose to engage a lawyer for assistance with drafting and reviewing the share transfer agreement.

It’s important to note that any taxes associated with capital gains or income from dividends resulting from ownership of those shares will not be affected by the transfer itself.

While some costs are involved in transferring shares in Malaysia, they are relatively minor compared to other financial transactions. It’s always best practice to consult a professional advisor before making any major moves involving your investments or assets.


Transferring shares in Malaysia may seem daunting, but it can be done with the proper knowledge and guidance. Understanding the rules and regulations surrounding share transfers and the costs involved is essential. Seeking professional assistance from lawyers or brokers can help facilitate the process smoothly.

It’s also important to note that every company’s situation may vary, so it’s best to consult with professionals based on your needs. With due diligence and care taken throughout the transfer process, shareholders can ensure that their transactions are conducted legally and efficiently.

Transferring shares requires careful consideration of legal procedures along with proper documentation. By following these guidelines, investors can successfully transfer their ownership rights while maintaining compliance with Malaysian laws governing such transactions.