Setting up Public Practice

No additional licensing requirements are needed and member can register a non-audit firms.

To be an auditor a member must be in possession of an audit licence granted by the Accountant General’s Office pursuant to the Companies Act 2016.

The requirements for applying for an audit licence are as follows:-

1. Is a member of the Malaysian Institute of Accountants (MIA) under the Chartered Accountant category. In addition, the applicant has to be a member of the MIA for at least one (1) year.
2. Possess a valid Practising Certificate issued by the MIA.
3. Possess sufficient working experience in audit practice in a public accounting firm:
   1. The candidate must have at least 5 years of working experience prior to application. The 5 years accumulative working experience can be obtained prior to and/or after becoming a Chartered Accountant of the MIA.
      1. At least 3 years must be in audit work.
      2. At least 1 year out of the above 3 years shall be in an audit supervisory role. The audit supervisory role is defined as being responsible for audit management including consultation with audit partners and has experience in giving opinions for financial statements and be directly involved in audit planning.
   2. Candidates who have left audit practice, but still within a 3 year period prior to the application to be approved company auditors, are still eligible to apply.
   3. For candidates who have left audit practice for more than 3 years, they must work for at least 1 year in audit in the Malaysian environment.
   4. Experience in other countries can also be considered however, they must work for at least 1 year in audit in the Malaysian environment.
4. Candidates are required to attend the “Public Practice Programme” organised by the MIA.

To be a liquidator, a member must be in possession of a liquidator licence granted by the Accountant General’s Office pursuant to the Companies Act 2016.

The requirements for applying for a liquidator licence are as follows:-

1. Must be a Malaysian citizen or permanent resident;
2. A member of recognised professional body under Section 433(5) on the Companies Act 2016 and hold a valid Practising Certificate;
3. Not a bankrupt, not been convicted in the immediate past 5 years whether within or outside Malaysia of any offence involving fraud or dishonesty relating to the promotion, formation or management of any body which punishable on conviction with imprisonment for three months or more;
4. Possess sufficient working experience in liquidation practice as follows:
   1. 5 years of full-time working experience in the field of liquidation;
   2. Candidates who have left liquidation practice, but still within a 3 years period prior to the application to be approved company liquidators, are still eligible to apply.
   3. For candidates who have left liquidation practice for more than 3 years, they must work for at least 1 year in insolvency in the Malaysian environment.
   4. Experience in other countries can also be considered however, candidate must work for at least 1 year in liquidation in the Malaysian environment.
5. A sponsor letter from an approved liquidator who has supervised the candidate;
6. Must have the capacity in carrying out the duties as a liquidator.

The issuance of a licence to be a tax agent is governed by the Income Tax Act 1967.

A licence is only granted after the applicant has passed an interview conducted by the Inland Revenue Board.

The practice of taxation may be carried out under a body corporate. However, it has to be established as a separate entity from that of a public practice and may not be referred to as a tax consultant or tax adviser. Only members who hold themselves out as chartered accountants with valid practising certificates may use these descriptions under a sole proprietorship or a partnership. A body corporate cannot be described as chartered accountants and it cannot be registered as a member firm of the Institute.

MIA is one of the recognised bodies under Fourth Schedule of the Companies Act 2016, which qualify its member to become a company secretary. Section 241 of the Companies Act 2016 requires any person who is qualified to act as a secretary and who desires to act as a secretary to register with Suruhanjaya Syarikat Malaysia (SSM) before he can act as a secretary. SSM will issue a practising certificate for company secretary upon satisfaction on the qualification and requirements specified under the Companies Act 2016, regulation and guideline.

Requirements to act as company secretary for MIA members:

1. a natural person;
2. eighteen years of age and above;
3. a citizen or permanent resident of Malaysia;
4. not disqualified under section 238 of the Companies Act 2016; and
5. not have any pending legal action under any provision of the laws specified in the First Schedule of the Companies Commission of Malaysia Act 2001

Other related services include management consultancy and corporate services such as secretarial services. Where these services are provided under the same accounting firm or tax firm or audit firm, no new licencing requirements is required.

However if a member carries out management consultancy and certain corporate services other than secretarial services, he/she will be required either to incorporate a limited liability company pursuant to the Companies Act 1965 or practise as a sole proprietorship or partnership pursuant to the Registration of Businesses Act 1956.

A chartered accountant without a valid practising certificate may set up a corporate entity to provide management and corporate consultancy services but he or she cannot be registered as a member firm of the Institute and should not hold himself or herself out as a chartered accountant when describing his or her corporate activities. The company is also not allowed to describe itself as an entity of chartered accountants.