How Does Accounting Company Help When Striking Off a Company in Malaysia
There are many different situations where you might want to strike off your company registration in Malaysia. Generally, poor business performance or dormant companies take this step of closing down the company.
To ensure that you comply with the law during this process, it is highly recommended that you hire professional accounting services in Malaysia. However, you should be familiar with the rules and regulations and make sure you are making the right choice.
Role of Section 551 (1) in Striking Off a Company
Under Section 551 of the Companies Act 2016, the Companies Commission of Malaysia (SSM) can strike off a company if it meets the following requirements:
1. Resolution of the Shareholders
The directors of the company must get the resolution of the shareholders to start the process of striking off a company in Malaysia. This resolution must make it clear that every or at least the majority of the company’s shareholders want to shut it down.
2. Assets and Liabilities
The company must have no assets and liabilities at the time of submitting the application to strike it off. It is the responsibility of the Registrar to inspect the certified management accounts as accurate by a Director. Moreover, the Registrar also has the right to ask the company for audited financial statements.
It is also possible that a business owner might want to strike off company registration in Malaysia soon after its incorporation. In such a situation, the applicant must inform the Registrar about the incorporation date and that the company has not been involved in any transaction.
3. Outstanding Charges
It is the applicant’s responsibility to ensure there are no outstanding charges in the Registrar of Charges. If there are any additional dues, they have to be cleared before submitting the application to strike off the Malaysia company registration.
Similarly, the company or the hired accounting services must ensure no outstanding taxes or liabilities with any regulatory authority. You might have to obtain a tax clearance certificate to prove you are eligible for this process.
4. Penalties
The company must not have any kind of outstanding penalties or offer of compounds as per the rules and regulations of the Companies Act 2016. The applicant will have to make sure that such liabilities are settled before the application.
Otherwise, it can delay the entire process. You can use the services of accounting firms in Malaysia to inspect your financial records and other data to ensure you are eligible to apply for striking off the company registration.
5. Updated Information
The Registrar must have up-to-date information about your company. Such information is typically related to the nature of your business, description of the company processes, and information about the shareholders and directors.
If the Registrar finds any discrepancies in the records, you will have to provide thorough information and ensure that the latest information is provided to the Registrar.
6. Legal Proceedings
You can only strike off Malaysia company registration when your company is not involved in any legal proceedings either inside or outside Malaysia.
If there is any kind of impending legal case against you, you should never apply to get your company struck off. Instead, a smart move would be to wait for the case to resolve and then apply with the help of an accounting firm.
7. Return of the Capital
The company should not provide any return of capital to the shareholders directly. Instead, a proper procedure has to be followed to ensure the entire process is handled efficiently and in a professional manner.
The law makes it clear that a capital reduction exercise should be implemented for any return of capital to the shareholders. It is always a good idea to hire professional accounting services in Malaysia for this purpose.
8. Holding Company
The company that is going to be struck off must be an independent entity. It should not be a holding company or a subsidiary of an enterprise. Otherwise, it is the responsibility of the holding company to strike off its subsidiary company.
In a Nutshell
These requirements show that winding up a company in Malaysia is quite complicated because you have to deal with a variety of factors during this process.
However, you can easily make this process quick and smooth by hiring an accounting firm in Malaysia that provides professional accounting services to facilitate the companies in streamlining their working procedures and apply for striking off the company registration in Malaysia.
