Company Striking-Off in Malaysia

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Company Striking-Off in Malaysia
Striking off a company is a common way to formally close an inactive business in Malaysia. It's a cost-effective alternative to winding up and is governed under Section 550 of the Companies Act 2016. However, not every company qualifies. Here's a full breakdown of what you need to know:

 Key Eligibility Criteria  

  1. Company Status & Operations

    1. Ceased Operations: Business must have completely stopped.

    2. No Assets or Liabilities: Company should not hold assets or owe any liabilities.

    3. No Outstanding Debts: Must settle all dues with:

      1. Companies Commission of Malaysia (SSM)

      2. Inland Revenue Board (LHDN)

      3. EPF, SOCSO, HRDF, and other relevant authorities


  1. Shareholder & Legal Requirements

    1. Shareholder Consent: Majority shareholders must agree to the striking off.

    2. No Legal Proceedings: Company must not be involved in any local or international court cases.

    3. No Registered Charges: No pending charges with SSM.


  1. Other Conditions

    1. Company information at SSM must be up to date

    2. All company bank accounts must be closed

    3. No return of capital to shareholders prior to striking off

    4. Not a holding/subsidiary company

    5. Not a housing developer or "Guarantor Corporation"

    6. Obtain waiver letters from directors/creditors (if applicable)

 The Striking-Off Process 

  1. Preparation by Company Secretary:

    1. Cover letter to SSM

    2. Directors’ declaration

    3. Shareholders’ resolution

    4. Latest management accounts

    5. Relevant supporting documents

  2. Submission:

    1. Application submitted to SSM

  3. Publication:

    1. SSM will publish a Notice in the Gazette

    2. If no objections arise, the company will be officially struck off the register


 ⚠️ Important Considerations：

  1. Reinstatement Risk: SSM may reinstate the company within 7 years if there’s evidence of continued business activity.


  1. Cost-Effective: Generally cheaper than voluntary liquidation.


  1. Director’s Liability: Directors may still be liable for offences committed before dissolution.


  1. Tax Clearance: Required from LHDN (may be waived for dormant companies)


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