Strike Off Procedure for a Company in Malaysia
Striking off is a process by which a company is removed from the Register of Companies with the Companies Commission of Malaysia (SSM). It is typically used by companies that are dormant or have ceased operations and have no intention of continuing business.
1. Eligibility for Strike Off
According to Section 550 of the Companies Act 2016, a company may apply to be struck off if it meets the following criteria:
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The company is not carrying on business or is not in operation.
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The company has no assets and no liabilities.
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The company has no outstanding penalties, fines, or compounds with SSM.
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The company has no outstanding tax liabilities with the Inland Revenue Board (LHDN), Royal Customs (if GST/SST registered), or any other government agency.
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The company is not involved in any legal proceedings inside or outside Malaysia.
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The company has no charges in the Register of Charges.
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The company has obtained written consent of all shareholders.
2. Documents Required
To proceed with the application, the following documents are usually prepared:
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Application Form (Form Section 550) – Formal request to SSM.
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Directors’ Resolution – To approve the strike-off application.
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Statement by Director – Confirming that the company fulfills the strike-off criteria.
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Consent Letters / Waivers – From shareholders, directors, or creditors (if any loans were provided).
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Updated Financial Statements (if applicable) – To show no assets/liabilities remain.
3. Step-by-Step Procedure
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Board Resolution
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Directors pass a resolution approving the strike-off application.
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Clear Outstanding Matters
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Ensure all statutory filings are up to date (annual returns, financial statements).
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Settle outstanding taxes, levies, or penalties with LHDN, Customs, EPF, SOCSO, etc.
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Prepare Supporting Documents
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Statement by Director, shareholder consent, and any necessary waiver letters.
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Submission to SSM
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Lodge the strike-off application with SSM under Section 550.
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SSM Review
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SSM will review and, if satisfied, publish a notice in the Gazette giving 30 days for objections.
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Final Strike Off
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If no objections are received, SSM will strike the company’s name off the register.
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4. Timeline
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The process usually takes 6 to 12 months, depending on completeness of documents, clearance of liabilities, and whether objections arise.
5. Alternative: Voluntary Winding Up
If the company still has assets or liabilities, strike off is not appropriate. Instead, the company must undergo Members’ Voluntary Winding Up under the Companies Act 2016, which involves liquidators.
Disclaimer: This article is for informational purposes only and does not constitute any professional advice. Feel free to contact us to consult with our professional advisors team for personalized advice and guidance.
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