Every business journey has a beginning, but sometimes, there also comes an end. If you’ve decided to close your Malaysian company, navigating the legalities of dissolving it can seem daunting. But fret not! Striking off your company, a simpler alternative to formal liquidation, offers a streamlined approach. Here at B’yoncorpserv, we’re here to guide you through the requirements, process, and what to expect when striking off your Malaysian company.
Understanding Strike Off
Striking off refers to the official removal of your company’s name from the Registry of Companies in Malaysia. This essentially dissolves the company, rendering it legally non-existent. However, it’s crucial to understand that striking off is only an option for companies that meet specific criteria:
- Dormant Status: The company must not be actively carrying on business or operations.
- Settled Finances: There must be no outstanding debts, loans, or legal proceedings against the company.
- No Charges: The company cannot have any outstanding charges registered against its assets.
- Tax Compliance: All taxes must be settled, and a tax clearance certificate obtained.
- Shareholder Agreement: A resolution approved by the majority of shareholders, authorizing the strike-off application.
The Strike-Off Process: A Step-by-Step Guide
- Gather Documentation:
- Resolution for strike-off passed by shareholders.
- Latest certified financial statements (balance sheet & profit & loss).
- Cover letter explaining the reason for strike-off.
- Declaration form signed by a director.
- Proof of settlement for any outstanding penalties.
- Tax clearance certificate.
- Submit Application:
- File the application form (Form PDM 01) with the Companies Commission of Malaysia (SSM).
- Pay the requisite processing fee
- Advertisement & Objections:
- The SSM will advertise your intention to strike off the company in the official gazette.
- Creditors or interested parties have a window to object to the strike-off.
- Strike-Off Order:
- If no objections arise, the SSM will issue a strike-off order, officially dissolving your company.
Timeline and Expectations
The entire process can take anywhere from six to twelve months, depending on the SSM’s workload and any potential objections. Throughout this period, it’s crucial to maintain meticulous records. The directors are legally obligated to retain all company documents (registers, accounts, etc.) for seven years after the strike-off.
Important Considerations
- Seek Professional Help: Striking off, while simpler than liquidation, involves legal procedures. Consulting a qualified professional can ensure a smooth and compliant process.
- Not a Debt Escape Hatch: Striking off does not absolve directors of personal liability for any pre-existing company debts or legal transgressions.
- Alternatives exist: If your company has assets or outstanding liabilities, voluntary liquidation might be a more suitable option.
Conclusion
Striking off your Malaysian company provides a streamlined and cost-effective way to formally close your business. By ensuring you meet the eligibility criteria and follow the proper procedures, you can ensure a smooth and compliant dissolution. Here at B’yoncorpserv, we offer comprehensive company strike-off services to guide you through every step of the process. Contact us today to discuss your specific situation and receive expert advice on dissolving your company efficiently and compliantly.
