Malaysia Striking Off Service
If you are contemplating the closure of your business in Malaysia, either due to poor performance or dormancy with no activity, the typical procedure involves submitting a striking-off application through Suruhanjaya Syarikat Malaysia (“SSM”).
It is important to be aware that specific criteria and compliances must be met before the striking-off application can be processed.
Conditions to Strike Off a Company
For various reasons, the company may decide to initiate closure proceedings, and individuals with authority, such as the director, appointed corporate secretary, and registered filing agent, can submit an application to SSM to deregister the company in accordance with Section 550 of the Companies Act, 2016.
To initiate the striking-off process under Section 550 of the Companies Act 2016, the company must meet the following conditions:
- The company has not commenced business since its incorporation or has ceased operations.
- The company does not have any assets or liabilities.
- All company bank accounts have been closed.
- There are no outstanding taxes or liabilities with any government department or agency.
- No payable charges are indicated in the Register of Charges.
- The company has no outstanding penalties or offers of compounds under the Companies Act, 2016.
The company is not currently engaged in any legal proceedings, either domestically or internationally.
- No return of capital has been made to shareholders.
- Company information with the registrar is current.
- The company is not a holding company.
- The company is not a “guarantor corporation.”
Processing Time
- The complete process is expected to span a duration of 12 to 16 months.
Submission of a Protest Against Striking Off a Company in Malaysia
Any concerned party has the option to submit an objection against a striking-off application, accompanied by a prescribed fee of RM300.00. This objection must be filed within 30 days from the date specified in the notice or publication under Section 551(1). The objection can be based on any grounds outlined in Section 552(1) and must include the requisite supporting documents. If the Registrar receives an objection subsequent to the notification issued under Section 551(1), the Registrar will refrain from proceeding with the company’s striking-off application unless:
(a) The objection has been withdrawn
(b) The facts on which the objection is based are found to be incorrect or no longer applicable
(c) The objection is deemed to be frivolous and vexatious
Cancellation of Striking Off Request
A company has the option to request the withdrawal of its striking-off application within 30 days from the specified date in the notice or publication under Section 551(1). This request must include a valid reason, necessary supporting documents, and a prescribed fee of RM500.00.
Gazette Notification
The striking-off process involves notifying relevant parties through official notices and publishing notifications in the gazette. Following the gazette publication as outlined in Section 551(3) of the CA 2016, the company will be officially dissolved.
Post-Striking Off of a Company
Following the striking-off of the company from the register, the directors are obligated to retain all registers, books, statutory records, accounting records, and documents as mandated by the CA 2016. These records should be preserved for a duration of 7 years and must be made available for inspection upon request by the registrar.
For further information and professional advice, please feel free to get in touch with us.
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Premia TNC has the optimal solutions for all your business needs.
Get in touch today for a FREE consultation.
No hidden costs, no obligations.
Feel free to drop us an email too!
[email protected]
