Generally, Malaysian registered private limited companies (Sdn Bhd), unlisted public companies (unlisted Berhad) and Limited Liability Partnerships (LLP) with paid up capital less than RM10 million are allowed to launch equity crowdfunding campaigns. However, some private limited companies are barred from seeking funds through equity crowdfunding, which include:
- exempt private companies;
- commercially or financially complex structures (i.e. investment fund companies or financial institutions);
- public listed companies and their subsidiaries;
- companies with no specific business plan or its business plan is to merge or acquire an unidentified entity (i.e. blind pool);
- companies other than a microfund that propose to use the funds raised to provide loans or make investment in other entities;
- any other entities that the SC may specify from time to time.
The entities that raise funds through equity crowdfunding are also referred to as “issuers”.