How to close your Dormant Company / Striking Off
What you need to know when you no longer need your company and wish to close the Company and reduce costs.
If you no longer need a company and do not wish to continue incurring the annual costs to maintain a company, the best solution would be to to 'close' the company. There are 2 ways you can 'close' a company in Malaysia:
(a) Strike Off under Section 550 of the Companies Act, 2016
(b) Winding Up (Members’ Liquidation)
While winding up of a company can easily cost more than RM10,000, the easier and cost effective way to close down a company is by way of a Section 550 Strike Off (RM1000 onwards)
Requirements to strike off a Company:
To determine if your company is eligible to strike off, your company will need to fulfill the following requirements :
(a) The company has NOT commenced business since incorporation or is NOT carrying on business or ceased business operations for quite some time.
(b) The company has NO intention to commence or carry on its business or operation in the future.
(c) The company has NO assets and liabilities including outstanding charges in the Register of Charges.
(d) The company has insufficient funds (NO money) to pay for winding up expenses.
(e) The company has NO outstanding penalties or offer of compounds under the Companies Act 2016.
(f) The company has NO outstanding tax or other liabilities and is NOT indebted to any government/government departments/government agencies in Malaysia.
(g) The company has NOT made any return of capital to the shareholders.
(h) The information of the company with the Registrar as shown in the “print-out” is up to date.
(i) The company is NOT involved in any legal proceeding within or outside Malaysia.
(j) The company is NOT holding company of other corporate bodies
(k) The company is NOT a “Guarantor Corporation”.
SSM will accept unaudited accounts / management accounts to strike off a company
According to the striking off guidelines published by the SSM, they may accept unaudited management accounts with no assets and liabilities.
However, SSM may, at their sole discretion, require the company to submit the audited financial statements (audited reports) after the submission of the striking off application.
TIME FRAME AND COSTS OF STRIKING OFF
It will take about 3 months to a year to complete the striking off process and a fraction of the cost as opposed to winding up a company. Do contact us to check if your company is eligible to apply for a striking off process.