When you carry out a company formation to start the new company then it is the must for you to register your company in Malaysia. You can register your company easily with Companies commission of Malaysia which is also called SSM. Three are lots of reasons due to which your company may be removed from that registrar. This process is known as ‘Strike off’ because the company is completely struck from the registrar. If in Malaysia you are no longer need the company and don’t wish to spend any money to maintain the company then the best way is to close down the company.
There are 2 popular methods which are used in order to close a company in Malaysia. First one is Strike Off and second one is winding up. While winding up of a company Malaysia cost more than RM1x, xxx, so the cost effective as well as an easier way to close down a company in Malaysia is Strike off. So here in this article, I am going to share with you complete overview of closing down of a company via Strike off.
Requirements to close down a Company via Strike Off
There are the certain requirements of Strike off then you must need to follow in order to make your company eligible to strike off in Malaysia. So these requirements are as follows.
- The company has no intention to carry on its business or operation in the future.
- Since incorporation the company has not commenced business or the company is not carrying on business or ceased all business activities or operations for quite some time.
- This company has not liabilities and assets including outstanding charges in the register of charges.
- These have not sufficient funds to pay for winding up expenses.
- The company has no outstanding penalties.
- The company has no outstanding tax as well as other liabilities and is not indebted to the government of Malaysia.
- The company hasn’t made any return payment to its shareholders.
- Any sort of information provided by the company to the registrar is up to date.
- The company is eligible for strike off when it is not involved in any legal proceeding in Malaysia.
- The company is not holding company.
SSM Guide to Malaysia Company Strikes off
SSM has issued complete guide for strike off. According to SSM when they issue strike off the name of a company they may accept unaudited management accounts with no liabilities and assets. However, it is the requirements of the SSM to submit the audited financial statements after the submission of striking off application.
What is the processing time of Strike off?
The whole process of strike off is completed within 6 to 12 months. It depends on the approval from the SSM Malaysia. If your company full fills all the requirements which are posted above then the whole Malaysia Company striking off process will complete within 6 to 12 months.
Strike Off Charges in Malaysia
The charges of the strike-off process are ranging from RM 1xxx to RM2xxx.
Malaysia Company Striking Off Procedure
There are certain conditions of Companies Commission of Malaysia or CCM Malaysia/SSM Malaysia. Here are certain conditions of SSM if the company full fills the following requirements then there is a high chance to be approved for striking off by SSM.
- Inactive>> Expanses incurred but no sales
- Dormant>> No activities at all during the specific time period
- Low Activities>> very minimum business or operational activities
- Very low paid up Capital