Malaysia Striking Off
Dissolution
Company Dissolution Services
Considering terminating your business and subsequently closing your company in Malaysia, perhaps due to suboptimal business performance or dormancy (no activity)? Generally, the standard procedure involves submitting a dissolution application via the SSM.
Please be aware that there are specific prerequisites and compliance standards that must be met prior to progressing with the dissolution application.
Conditions for Company Dissolution
Various reasons may prompt a company to consider closing, and authorized individuals such as directors, appointed corporate secretaries, or registered filing agents can request the Companies Commission of Malaysia (SSM) to remove the company from the register under Section 550 of the Companies Act 2016.
In order to be eligible for dissolution under Section 550 of the Companies Act 2016, the company must meet the following criteria:
- The company has not begun business since its establishment or has ceased operations.
- The company is free from both assets and liabilities.
- All of the company’s bank accounts are closed.
- There are no outstanding tax obligations or liabilities with any governmental department or agency.
- No outstanding charges are recorded in the Register of Charges.
- The company has no pending penalties or offers of compounds under the Companies Act 2016.
- The company is not engaged in any legal proceedings, either within or outside of Malaysia.
- The company has not returned any capital to its shareholders.
- All company information with the Registrar is current.
- The company is not a holding company.
- The company does not function as a “Guarantor Corporation”.
Timeline
The entire process generally spans a minimum of 12-16 months.
Objection Submission Against Striking Off in Malaysia
Any concerned party has the right to file an objection against a dissolution application by paying a nominal fee of RM300.00 within a 30-day window from the date mentioned in the notice or publication of the notification under section 551(1), based on the grounds outlined in section 552(1). This should be accompanied by relevant supporting documentation. If an objection is received following the notification as per section 551(1), the Registrar will not proceed with the dissolution request unless convinced that:
(a) the objection has been retracted;
(b) the grounds on which the objection was formed are either incorrect or no longer valid; or
(c) the objection is without merit and vexatious.
Dissolution Application Withdrawal
Within 30 days from the date indicated in the notice or publication of the notification under section 551(1), a company can seek to withdraw its dissolution request by providing a reason and necessary supporting evidence, along with a stipulated fee of RM500.00.
GAZETTE NOTIFICATION
The dissolution process is executed through the release of a notice to concerned parties and the publication of the notification and gazette. Following the publication of the gazette under section 551(3) of the CA 2016, the company will be dissolved henceforth.
Post-Dissolution Responsibilities
Post the company’s striking off from the register, directors are required to preserve all registers, books, statutory records, accounting records, and documents as stipulated under the CA 2016 for a duration of 7 years. These records should be made accessible for scrutiny upon the Registrar’s request.
For comprehensive details and professional guidance, we invite you to reach out to us.
Premia TNC has the optimal solutions for all your business needs.
Get in touch today for a FREE consultation.
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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]
