Currently the definitions of Bumiputera company by the National Finance council according to the Treasury Circular no 7/74 are as follows:
- A company which the majoriy of the share (at least 51%) is owned by Bumiputera.
- and majority (at least 51%) of the company workforce constitute of Bumiputera.
Or corporations or companies established by the federal or state governments and the subsidiaries of those agencies and companies meant for increasing the number of Bumiptera in trade and industry such as PERNAS, State Economic Development Corporations and their subsidiaries, subsidiares of MARA and etc.
Companies which would like to apply for the Bumiputera status recognition should fulfill the conditions recorded in the Treasury Circular no. 7 year 1974, which are:-
- Majority or at least 51% of members of the Board Of Directors are Bumiputera.
- Majority or at least 51% of members of the management are Bumiputera.
- Majority or at least 51% of shares are owned by Bumiputera.
- Majority or at least 51% of workers (clerical and building site) are Bumiputera.
Class 'F' Contractors
All class F contractors are Bumiputera. This mean class F contractors are Bumiputera contractors and not need to apply for the recognition of their Bumiputera status.
A company, business, co-operative society or organization which is interested to be registered as a work contractor or electric contractor is required to be incorporated or registered in this country with one of the following departments:-
- Business Registration
- Company Registration
- Cooperative Development Department
- Farmers' Association Board
Company Financial Position
In order to be eligible for consideration for the requested class, a company should own a minimum capital as follows:-
Civil Work Contractor Registration
Paid-up Capital / Minimum Accumulated Capital (RM)
Electric Works Contractor Registration
Paid-up Capital / Minimum Accumulated Capital (RM)
Only companies, businesses, co-operatives or organizations which own 100% additional equity (equity held by Malaysian citizens) may be considered for registration for all class, heads and sub-heads.
Companies, businesses, cooperatives or organizations which own foreign equity (non Malaysian citizen) may still be ocnsidered for registered subject to the following conditions:-
- Maximum Foreign Equity limited to 30% of the company's paid up capital.
- When Foreign Equity is present, Bumiputera equity should not be less than 30% of the company's paid up capital.
- Grants for Head and sub head I, II, IV are subject to the Treasury Circular No. 15 year 1986 dated 25 July 1986 and amendments dated 6 January 1987. It needs to be included as a specific term at the company's registration certificate.
- Foreign citizens working with a company are required to obtain a work permit from the Malaysia Labour Department or the Malaysia Immigration department.
Involvement of More Than One Company
An application could not be given consideration or for a registered company, the registration will be cancelled if :-
- Members of the Board Of Directors or share owners own shares exceeding 5% or RM50,000 (whichever is less) in any company registered with PKK in the same work area or work head.
- Members of the management or technical qualified staff are actively involved in any company registered with PKK in the same work area or work head.
- Individual businesses enrolled in low registration class which set up partnership business or Private Limited Company / Berhad and subsequently registered with a higher class would have its lower class individual business registration for the same work head that has been approved for partnership business or Private Limited Company / Berhad cancelled.
General Terms of Registration
- Registration approval is given based on information that has been presented by the company.
- Any appeals on the application results (approved / rejected) need to be presented to the PKK Director within 3 months from the date of the offer letter for registration of rejection of application. Appeals received after this period will not be considered.
- Any changes on the information should be submitted to PKK within 21 days from the day of change.
- PKK entitled to cancel or suspend a company registration without any notice if the company fails to submit the required information.
- The original copy of registration certificateshould be presented with tender or quotation documents.
- Registration is only approved for the period 2 years.
- A company should submit an application for registration renewal three (3) months prior to the expiry date.
- A renewal application which is received after the registration expiry date will be considered as a fresh application and will be subjected to the processing fee and full registration fee.
- For the registration of Class B work contractors, the company should have a technical officer except for general head and sub-head only.
- For the registration of Class I electrical contractor, the company should have an Electrical engineer and Class A Wiring Contractor Certificate with the Electrical Inspection Board Department.
- Registration for calss F contractors is specifically for company / business 100% Bumiputera.
Areas Of Operation
- Class A, B and C
- Class D and E Bumiputera status
- Class F
- Class I, II, III and IV
Only class F for voting of quotations and requisitions.
Company officials stated in the registration certificate are representatives authorized to sign all the company's contract documents and to take or authorize in writing to company employess to take a tender form.
Related Information & Documents Required
A company, business, cooperative or organization when applying for a new application, class upgrade, additional head / sub-head, special authorization change in company name or renewal of registration should also present information and documents related to the establishment and its activities along with the relevant application form.
Important Information and Documents
- Copy of form 9 Perakuan Perbadanan and 'Memorandum and Articles of Association'.
- Copy of form 13, 'Certificate of Incorporation on Change of Name Of Company' if there is a change in the company name.
- Copy of form 49, 'Return Giving Particular in Registration of Particulars WHICH HAS BEEN CERTIFIED BY THE COMPANY REGISTRAR.
- Copy of form 24, 'Return of Allotment of Shares WHICH HAS BEEN CERTIFIED BY THE COMPANY REGISTRAR.
- If company shares are also owned by the company / other companies, FORM 24 AND 49 THAT HAVE BEEN CERTIFIED BY THE COMPANY REGISTRAR and THE IDENTITY CARD NUMBER OF THE NOMINEE IN THE FORM 24 OF THE COMPANY / COMPANIES must be presented.
- Share transfer certificate that has been stamped by the stamping office, if involves transfer of share ownership.
- Name list of all KWSP form employees (Employees Provident Fund).
- List of names and identity card number, name of all shareholders, members of the Board of Directors and key personnel of the company.
- Copy of certificate or letter of approval owned by members of the Board of Directors, shareholders, company management members that have been certified by Oath Commissioner / Penghulu / Group A government officers.
- Copy of Certificate of Loyalty issued by the Electrical Inspection Board Department and certified by the Oath Commissioner, Penghulu or Group A government officers.
- Copy of Certificate of Registration as the wiring contractor issued by the Electrical Inspection Board Department and certified by the Oath Commissioner, Penghulu or Group A government officers.
- Letter of 'Agency Right' or support letters from manufacturer /Distributor / supplier of mechanical equipment under Head III.
- Form 'A' registration of business certified by the registrar.
- Form 'B' Registration of Changes in Business certified by the registrar.
- The latest Form 'D' 'Certificate of Registry' certified by the registrart.
- Registered Partnership agreement letter certified by Oath Commissioner or Group 'A' government officers / Penghulu.
- Bank statement under the business name for the last three (3) months.
- Confirmation letter of financial facilities under the business name issued by the banks or other financial instituions.
- Copy of certificate of savings or shares under the business name.
- Letter of permanent property assessment under the business name that is made by and accredited valuer (for individual businesses, it can be done under the owner's name).
- Lists of all management team, employees and business KWSP form.
- Identity card number of all Shareholders, Management Members and key personnel of the company.
- Copy of certificate or letter of approval owned by the owner, shareholders, management members and company employees certified by the Oath Commissioner, Penghulu or Group A Government Officers.
- Copy of Certificate of Loyalty issued by the Electrical Inspection Board Department to the business competent employee, certified by the Oath Commissioner, Penghulu or Group A government officers.
- Copy of Certificate of Registration as the wiring contractor certified by the Oath Commissioner, Penghulu or Group A government officers.
- Letter of 'Agency Right' or support letters from supplier / distributor of mechanical equipment under head III.
- Letter from the relevant government deparments related to the sub-head under head III.
- Form of acknowledgement of Certificate of registration of cooperative / organization with the Cooperatives Development Department / Farmers' Association Board.
- A copy of cooperative / organization establishment legislation.
- Letter of support for application by the Cooperatives Development Department / Farmers' Association Board
- A copy of the minute for the latest meeting showing the appointment of members of the Board of Directors or committee members of Cooperative / organization.
- A copy of the cooperative / organization latest annual report that has been audited.
- Bank statement under the name of the cooperative / oragnization for the last 3 months.
- Letter of confirmation of financial facilities under the name of the cooperative / organization issued by the bank or other financial institutions.
- Copy of Certificate of savings or shares under the name of cooperative / organization.
- Letter of assessment of fixed price under the name of the cooperative / organization which was made by and accredited valuer.
- A name list of shareholders who own more than 5% of the accumulated capital.
- Copy of certificate or letter of approval owned by the members of the Board of Directors, Shareholders, company management members certified by the Oath Commissioner, Penghulu or Group A government officers.
- Copy of Certificate of Loyalty issued by the Electrical Inspection Board Department to the company's competent employee, certified by the Oacth Commissioner, Penghulu or Group A government officers.
- Copy of Certificate of Registration as the wiring contractor issued by the Electrical Inspection Board Department to the company's competent employee, certified by the Oatch Commissioner, Penghulu or Group A government officers.
- Letter of 'Agency Right' or letter of support from the manufacturer / distributor of mechanical equpment under head III.
Additional information and Document
Additional information and documents that may help an application for all types of companies, business, co-operative society or association are as follows:-
- Letters of confirmation regarding financial facilities.
- The company's latest financial statement (Balance Sheet and Profit And Loss Account).
- Letters of confirmation from the relevant parties regarding the experience of management staff related to the application.
- Receipts of purchases of equipment / plants and letters of vehicle registration (Registration Card) owned by the company.
- Letters of confirmation on equpment / vehicles rental facilities.
- Letter of confirmation on credit facilities of building material.
- Letter of Acceptance of tender for the accepted project.
- Certificate of completion of work for completed works.
- Letter of subcontract agreement for projects obtained through sub-contract between a main contractor and a sub-contractor and the letter of acceptance by the project main contractor must be presented.
Any further clarification, kindly visit website PKK
Pusat Khidmat Kontraktor (PKK)