How to close a company in Malaysia?

If you are no longer need the company in Malaysia and do not wish to continue incurring costs to maintain the company, the best way is to close down the company.

In order to close a company in Malaysia, there are two ways to do so:

1. Strike Off
2. Winding Up (Members’ Liquidation) 

While winding up of a company can easily cost more than RM10,000, the easier way and cost effective way to close down a company is by way of Strike Off.

What are the Requirements to close down a company (strike off)?

In order to make your company eligible to strike off, your company will need to fulfill the following requirements to close down the company:

1. The company has NOT commenced business since incorporation or is NOT carrying on business or ceased business operations for quite some time
2. The company has NO intention to commence or carry on its business or operation in the future
3. The company has NO assets and liabilities including outstanding charges in the Register of Charges
4. The company has insufficient funds (NO money) to pay for winding up expenses
5. The company has NO outstanding penalties or offer of compounds under the Companies Act 1965
6. The company has NO outstanding tax or other liabilities and is NOT indebted to any government/government departments/government agencies in Malaysia
7. The company has NOT made any return of capital to the shareholders
8. The information of the company with the Registrar as shown in the “print-out” is up to date
9. The company is NOT involved in any legal proceeding within or outside Malaysia
10. The company is NOT holding company or a subsidiary of other corporate body
11. The company is NOT a “Guarantor Corporation”

SSM accept unaudited accounts to strike off a company

According to the guidelines to strike off the name of a company issued by SSM on 12 January 2007, SSM may accept unaudited management accounts with no assets and liabilities.

However, SSM may require the company to submit the audited financial statements (audited reports) after the submission of the striking off application with SSM at their sole discretion.

Download here: SSM Guidelines To Strike Off A Company 

What is the Processing Time ?

The Strike Off process may be completed within 6-12 months subject to the approval from SSM Malaysia.

How much does it cost to strike off a company?

The charges to strike off a company is ranging from RM1,500 to RM2,000.

ARE YOU READY to strike off company in Malaysia?

Based on our past years’ experiences dealing with SSM, we believe a company with the following conditions will have a very good chance to be approved for striking off by SSM:-

• Dormant – no activities at all during the period
• Inactive – with some expenses incurred but no sales
• Low activities – with very minimum business activities
• Low paid up capital

If your company has met all the above mentioned requirements and conditions, you are welcome to contact us at 03-77297018 for any further information.