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How Does Accounting Company Help When Striking Off a Company in Malaysia?

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Post date September 1, 2021
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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.

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8 Things to Do Before Setting Up A Company in Malaysia

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Post date September 1, 2021
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8 Things to Do Before Setting Up a Company in Malaysia

Malaysia is considered one of the best countries to do business because the rules and regulations in the country are much more relaxed and easier to follow than many other countries. Moreover, the ranking of Malaysia in the World Bank’s Ease of Doing Business also indicates that the country is one of the favourite places of various types of companies.

To start a business in Malaysia, you must be fully familiar with the different aspects of running a business and Malaysian company registration to ensure you complete the entire process efficiently and reliably.

In this article, you will learn the eight things to consider when you are setting up a company in Malaysia:

1. Determine Industry Requirements

Even though most of the industries in Malaysia allow both foreign and local corporations and individuals to establish their businesses, there are still some specific sectors that are limited to the locals due to national security interests. For instance, oil and gas services, warehousing industry, land transportation, and other such industries require special licenses before you can establish your company in Malaysia.

Therefore, it is very important to determine whether you will have to meet any specific conditions to set up a company of your choice in Malaysia and if any restrictions might apply to you. Generally, getting this information is quite easy from the regulatory authorities in Malaysia and their official websites, so you should have no issue in completing this step.

2. Open a Bank Account

It is highly recommended that you open a company bank account at an early stage to deal with different transactions and keep their records efficiently. You should deposit some money in this account and use it for insurance, the company registration fee, and others.

3. Bank Account Documentation

You will have to get information about the documents you need to open up an account in the bank of your choice. Make sure you make the right choice because you will use the same account for your business in the future.

4. Select Business Name

Every business in Malaysia must have a unique name. Besides the legal regulations, you should also consider that a business with an interesting and engaging name can quickly establish its brand and attract more people.

There are some online resources where you can run a potential name through the Malaysian companies’ database and ensure you are selecting a unique name. Keep in mind that you have to submit the ‘Name form’ to Suruhanjaya Syarikat Malaysia (SSM) and submit RM30 for each name of your choice.

5. Business Address

There are different types of business addresses. For instance, you might have a traditional physical office that might be rented or purchased in your name, or you might be running an online business from a virtual office.

Whatever the case, it is important to have a permanent business address that you will provide at the time of incorporation. If you are a foreigner who wants to establish a company in Malaysia, you might have to use virtual offices to run your business.

6. Consult an Accounting Firm in Malaysia

Despite the ease of doing business in Malaysia, realize that setting up a company in Malaysia from scratch can be difficult and overwhelming for anyone. Even if you are well-familiar with the rules and regulations, you can run into a variety of issues during this process.

Therefore, you should consider consulting an accounting firm in Malaysia when setting up a company in Malaysia. These firms have experienced professionals who can guide you through the process of company formation. Moreover, local service providers are fully familiar with the rules applicable to a specific industry, so you will not have to research it on your own.

7. Incorporation

Once you have prepared all the documents either by yourself or with the help of an accounting firm in Malaysia, the next step is incorporation, which is the core of company registration.

Most companies are registered as private companies limited by shares, or Sdn Bhd. Such companies are incorporated under the Companies Act 2016. An experienced accounting firm can facilitate you in company incorporation

8. Human Resources Management

Human resources management is extremely important to ensure the maximum productivity and efficiency of your business. This process involves hiring the best people in your business and making sure proper HR and payroll services are in place. Accounting firms in Malaysia can also help you out in these matters.

In a Nutshell

These are the top eight things everyone should keep in mind while setting up a company in Malaysia. Once you have considered these factors, you should have no issue in going through the company registration process easily.

For more information, feel free to get in touch with us.

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What are the Requirements for a Secretarial Audit?

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Post date September 1, 2021
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What Are the Requirements for a Secretarial Audit?

A secretarial audit is an essential part of a company to make sure it complies with the rules and regulations. It is considered to be an integral and effective part of the overall compliance management of a company in Malaysia.

The purpose of a thorough secretarial audit is to detect non-compliance policies in the company and take suitable measures to solve them.

Generally, you should prefer professional accounting services in Malaysia to conduct a secretarial audit of your company because these experts are well-familiar with the laws and regulations applicable to different types of companies in Malaysia.

Moreover, having an independent professional will ensure maximum transparency to ensure that your company complies with the legal and procedural requirements.

Secretarial audits are also essential when an organization is taking over or merging with another company. As a result, a secretarial audit will ensure that the targeted company is in compliance with the corporate laws and regulations, thereby preventing any legal issues in the future.

The company secretary also plays an important role in assisting the company in performing a quick and thorough review of the statutory forms, registers, and other essential business documents and procedures.

Important Factors in a Secretarial Audit

It is important to hire professional accounting services for a secretarial audit because it can be difficult for inexperienced and unqualified people to keep up with the legal rules and regulations. On the other hand, accounting and audit firms have experts who are well-familiar with the law and can ensure maximum compliance.

Another important factor is that you need maximum transparency during any type of audit of your organization. Professional accountants and company secretaries in Malaysia will make sure that the industry standards are followed during a secretarial audit of an organization. The ultimate goal of such services is to ensure that quality and an independent audit are conducted.

Requirements

Other than the fact that your company secretary should be professional and experienced in handling audits, you should look for the following factors during a secretarial audit:

1. Compliance

The goal of the secretarial audit should be to evaluate the level of compliance with the laws, rules, and policies applicable to the company. All kinds of regulations from different government levels are included in this phase.

It is the responsibility of accounting services and the firm conducting secretarial audits to ensure any laws specific to your type of business are also considered during the audit.

For instance, if a financial institution or a bank has to be audited, the laws applicable to the finance industry have to be considered. A similar pattern is followed in all other types of organizations.

2. Effective Management

It is important to ensure that the company’s programs and activities are not disturbed during the secretarial audit. Instead, such policies have to be designed so that the projects continue efficiently and economically.

3. Advise

The auditor and company secretary should be able to provide reliable advisory services at the end of the secretarial audit to ensure corrective measures are taken to enhance the management performance and compliance of the organization.

Benefits of a Secretarial Audit

The above discussion about the objectives and requirements of a secretarial audit makes it evident that a secretarial audit is an essential procedure for most organizations. A thorough secretarial audit makes sure that proper verification and reporting is done about the legal compliances of the company.

Similarly, it makes sure that corrective measures are taken immediately to sort out any issues in case of non-compliance with any rule or regulation.

Moreover, most organizations also have to go through a secretarial audit to protect the interest of their stakeholders by ensuring maximum transparency and compliance in the business procedures.

Ultimately, a secretarial audit is useful in enhancing the performance of the company and provide confidence to company directors and shareholders.

In a Nutshell

The overall requirements of the secretarial audit depend on the objectives of the secretarial audit. The summary of the most prominent objectives of the secretarial audit are:

Examine compliance with the applicable laws.
Develop a thorough report of the audit to ensure maximum compliance with the secretarial standards.
Protect the interest of the stakeholders.
Avoid legal penalties by ensuring compliance with the legal regulations.

By keeping these factors in mind, companies should have no issue shirring a suitable company secretary and accounting services in Malaysia who can perform the secretarial audit as per the industry standards.

For more information, feel free to get in touch with us.

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Human Capital Management vs. Human Resource Management

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Post date August 30, 2021
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Human Capital Management vs. Human Resource Management

The terms Human Capital Management (HCM) and Human Resource Management (HRM) are often used interchangeably by marketing professionals. However, there are some important differences between HCM and HRM that you should know about to make sure you are getting the best payroll and HR services from an accounting firm in Malaysia.

In this post, we are going to discuss the differences between HCM and HRM. Let’s get started:

What is Human Capital Management?

Human Capital Management (HCM) refers to all the essential functions involved in the management of human capital in a business. A variety of functions are included in HCM, such as applicant tracking, budgeting, performance management, employee attendance, financial analytics, and many other important business processes.

The term HCM is much more than just human resources. It consists of all the practices and processes that an organization must-have for the management of the employee life cycle. These practices and processes vary greatly from company to company, as every organization tends to have its own business model. As a result, the definition of HCM can also vary in different organizations.

Working of HCM

HCM is an essential part of payroll services because it ensures proper management of the workforce and making sure that the company is operating within jurisdictional and legal requirements.

Moreover, the critical sector of a business is thoroughly managed and analyzed in HCM, and the HR data is used to improve business processes.

Advantages of HCM Services

Accounting firms in Malaysia offer a variety of HCM services because HCM is vital for the organization that wants to maximize the benefits of their human capital to achieve their business goals and objectives.

It is important to hire professional payroll services to ensure both the short- and long-term success of the companies.

What is Human Resources Management?

Human Resources Management (HRM) systems typically include the systems that have always been used in the human resources department. However, technological advancements have greatly changed the way HRM systems work. A number of modern tools and technologies are used in the HR department nowadays to provide important payroll services like benefits administration, management reporting, and other such functions.

It is also important to note that human resources departments have also evolved in terms of their procedures and using modern tools. Most organizations now focus on human capital to build strong employment relationships and improve the performance of their staff. All of these processes are important to improve the overall business strategy.

The importance of reliable payroll and HR services cannot be understated in any type of business. Payroll services have a significant impact on every business process and department. Some of the most important processes of HRM include recruitment and onboarding, payroll management, conflict resolution, risk management, analyzing the performance of the employees, and many other important functions that are needed to smoothly run a business.

A major difference between HCM and HRM is that most experts believe that the term human resources has actually become outdated and should be replaced by human capital. The primary reason behind this is that human capital is viewed as something different and usually more important than HR. Resources are limited in some stages while capital is not. At the same time, some people and experts believe that the term ‘human capital’ is derogatory.

It shows that there is no universal consciousness on the definition of HCM and HRM. Generally, it can be said that the differences between these two terms are much more about the image that an organization is projecting rather than what is actually happening inside the business. The goal of both HCM and HR is to manage the staff, finances, payroll, and other such business functions to ensure the success of your business.

In a Nutshell

Hence, by knowing these important differences between HCM and HRM, you will be in a good position to choose the kind of services that you need for your business as per your requirements.

Generally, if you are looking for simpler services, you should consider HRM, while an all-encompassing solution would be HCM.

Whatever your choice might be, you should always consider hiring a professional accounting firm in Malaysia to get payroll and HR services because such firms have experts who can keep up with the changing business trends.

As a result, you will not have to worry about these everyday processes and have more time to focus on other business functions.

For more information, feel free to get in touch with us.

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What Are Payroll Processing Services and How Do They Work?

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Post date August 30, 2021
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What are Payroll Processing Services & How Do They Work?

Payroll processing and HR services are critical in running any type of business or company. However, you will need professional accounting services for this purpose because it can be quite challenging to manage the work by yourself when you are focusing on other aspects of the business.

Moreover, you should know that payroll processing is much more than just doing some calculations or keeping records. In fact, it involves keeping up with the latest rules and regulations to make sure your company complies with the law.

Payroll management is also important to make sure your staff is paid accurately and on time as per the legal regulations. As a result, many companies rely on outsourced accounting services in Malaysia so that experts and professional accountants can manage the accounting and payroll processes.

Following are the seven main steps involved in payroll processing services:

1. Gather Employee Information

The first step of payroll management is to gather the essential information about the staff of a company. Such information about the employees typically includes background details, full job application, insurance forms, retirement plan documents, and bank information.

The purpose of this step is to maintain thorough records about the people working in a company.

2. Define Payroll Policy

The amount of money that you pay to your employees is impacted by a number of factors. For instance, the leave and benefits policy of your company will impact the overall wages and salaries of the employees. Other factors like attendance and performance can also affect the salaries.

Therefore, it is highly important that a uniform payroll policy is developed so that payroll and HR services are performed as per the required standards.

Moreover, the employees should also be properly informed about the way your business manages payroll services. They should be familiar with the paycheck schedule and how your company will record the work hours.

3. Payroll Calculation

This is where the actual payroll calculation is performed after gathering the inputs in the previous stages. The result of these calculations is the net pay after making adjustments like taxes and insurance deductions.

If you have hired professional accounting services in Malaysia, you will have no issue with these processes because experts will be handling them.

Accountants familiar with the local taxes and deductions know exactly what type of federal, state, and local taxes have to be deducted from the net payment. Similarly, when the accountants calculate wages, they will know which deductions have to be made while paying the employees.

4. Payroll Accounting

Professional payroll and HR services make sure that thorough records are maintained of the financial transactions so that the company does not run into any issues at a later stage when they need the documents.

Organizations have to keep these records because salaries are one of the most important operating costs, so they must be recorded in the financial documents.

5. Payout

There are different options to pay the salaries to your employees. Generally, medium and large companies prefer to pay their staff through bank transfers.

Therefore, once the payroll process is completed, the accountants will make sure that there are enough funds in the company’s accounts to pay the employees’ salaries.

6. Reporting

Once the entire payroll is completed for a specific month, the finance and HR department will work together to prepare reports for each department and employee cost in terms of their position at the company.

It is the responsibility of the payroll officer to collect all of the required data, prepare thorough reports, and share them with the management.

7. Scalability

Accounting services in Malaysia also help you in fulfilling your requirements, even when your business is growing. This kind of scalability is typically difficult when you have in-house payroll management services, while it is quite easy for accounting firms in Malaysia.

In a Nutshell

Payroll processing has become quite complex over time. Organizations have to be on their toes to avoid any issues in legal compliance and facing potential employee lawsuits.

As a result, accounting services in Malaysia will use all of the modern tools and technology to streamline the payroll management of a business and ensure maximum compliance.

Companies that do not use such professional services face issues in keeping up with the modern trends of the industry, and their entire business could be adversely affected.

For more information, feel free to get in touch with us.

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Mistakes To Avoid After Completing Your Company Registration

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Post date August 30, 2021
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6 Mistakes To Avoid After Completing Your Company Registration

Company registration in Malaysia is an important task for every type of business. However, there are some common mistakes that many companies make during this process. Therefore, in this article, you will learn some important tips and tricks to follow to avoid such challenges in company registration.

Most of the businesses register as private limited companies (Sdn Bhd) in Malaysia. A benefit of registering such companies is that they are treated as separate legal entities, which means the shareholders are not held liable for the company’s debts. Generally, it is important to get approval for the company’s name from Suruhanjaya Syarikat Malaysia (SSM) before starting the registration process.

Following are some of the common mistakes that business owners make in company registration in Malaysia:

1. Company Name is Rejected

It is extremely important that you check that the company’s name of your choice is available, along with preparing essential incorporation documents. If you find out at a later stage that the proposed business name is not available, then it can be a huge blow to your overall business strategy and working timeline.

Therefore, pay special attention while you are submitting the name for a company. Some of the things to consider are:

The company name is not so general that it would resemble another registered company.
The name should not include any type of insult or obscenity.
The company should be named in accordance with the type of business.

2. Company Secretary

It is important for companies in Malaysia to have a company secretary. There are certain tasks that a company secretary has to perform as per Malaysian Law. It is the responsibility of the Board of Directors to appoint a company secretary so that he or she can review the board procedures and other important governance matters.

Therefore, it is necessary to hire a qualified company secretary who is familiar with the law and can fulfil the responsibilities as per the best industry standards. Otherwise, a number of delays, miscommunications, and penalties can be caused due to an unqualified company secretary.

You should make sure that the company secretary is familiar with company law and has good communication skills because he or she will be responsible for managing important business functions and dealing with a variety of people. Some companies make the mistake of not vetting their company secretaries enough, resulting in issues at a later stage.

3. Requirements

It is highly recommended that you get the help of experts and professional accounting services in Malaysia to make sure you can fulfil certain requirements to reside and operate in Malaysia.

Some of the things that you’ll need before and after the company registration are having a company bank account, working permit, foreign ownership approval, business license, and other such documents to operate in Malaysia without facing any issues. You should be familiar with all of these requirements because it is quite common that many foreign business owners face issues even after their company registration.

4. Lack of Marketing

Marketing should always be a priority for every type of business. Many companies tend to ignore the importance of marketing in the early stages for various reasons, such as lack of funds. However, marketing should be an integral part of a company’s budgeting process.

5. Too Much Confidence in a Single Product

While it is highly appreciable that a company is offering a flagship product, it should also be considered that too much confidence in a single product can prove to be damaging for a business in the long-run.

It is important for entrepreneurs to keep up with modern trends and keep reinventing themselves. Once a company is registered in Malaysia, it should make both short- and long-term plans to establish a loyal customer base and keep attracting more customers by offering new products.

6. Ignoring the Competition

Sometimes, business owners get so busy in processes like company registration and finance management that they ignore or underestimate the competition in the market.

You should always try to rely on the experts like accounting services in Malaysia to handle essential business functions so that you have more time and energy to spend on core business processes like analyzing the market and making strategies for your new company.

In a Nutshell

These are some of the common mistakes related to company registration in Malaysia.

You should keep these things in mind throughout the company registration process so that you can avoid these problems and register your company in a smooth and efficient manner.

For more information, feel free to get in touch with us.

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Tax Penalties In Malaysia You Need To Be Aware Of

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Post date March 12, 2021
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Tax Penalties In Malaysia You Need To Be Aware Of

Filing taxes is one of the most important things that every individual and business must take care of in different countries, including Malaysia. Companies that rely on professional accounting services have no issue in meeting the deadlines and properly file taxes on time.

However, it is possible that you might have thought about not paying taxes or delaying their payment. In such situations, you can face serious legal consequences and tax penalties in Malaysia. Whether you forget to file your taxes or decide to report a lower income than the actual one, you can be held accountable for tax fraud and evasion.

The purpose of this article is to let you know about the common tax offences in Malaysia, which can result in a tax penalty.

1. Avoid Tax Filing

If your company or you as an individual is eligible to pay taxes, you must file the taxes within the deadlines; otherwise, you can face fines and even jail time. The minimum criteria are that if you make an annual income of RM34,000 after EPF deduction, you must file your taxes.

If you choose to avoid filing your taxes, you will have to pay a fine of between RM200 to RM20,000 and possibly, face jail time. It is important to make sure that you are filing your taxes before the deadline to avoid these consequences. Generally, the tax on non-business income must be filed before 30th April, and tax on business activities must be filed before 30th June.

2. Misreporting Your Income

It is illegal to misreport your income by pretending to be making a lower income than your actual income. Even if you are not misreporting your income deliberately, it is quite common that businesses end up making mistakes in their financial analysis and reporting.

You can avoid this issue by relying on an audit firm in Malaysia that is capable of fully auditing your company and generating thorough financial reports to avoid wrongful reporting.

If you try to misreport your income to pay lower taxes, you can be fined a significant amount of between RM1,000 to RM10,000. Moreover, you will likely have to pay 200% of the tax that was undercharged in the initial unlawful tax claim.

It is important to reiterate that underreporting your income is a common and easy mistake that many individuals and businesses commit because they are now familiar with the taxation laws and the types of income that are taxable.

Other than employment income, rental income, dividends, and royalties are also included in the taxable income. Therefore, you should consider hiring professional accounting services in Malaysia to avoid such issues.

3. Exaggerating Tax Relief

Getting tax incentives and relief is highly important to cut down your tax bill. It can help you in saving a significant amount of money that you can invest in other parts of your business. However, you must ensure that you are filing your tax relief for which you are qualified. If you end up overstating your tax relief, you can run into serious legal issues.

The law makes it clear that if anyone is found guilty of overstating their tax relief and cannot support their claims of getting tax relief, they can be fined RM300 to RM10,000, along with facing possible imprisonment.

Whenever you are declaring tax relief, you should maintain thorough records of the receipts or any other supporting document to avoid any issue in the future. An audit firm can also help you in filing your taxes and making sure that all of the taxes are filed within the deadline.

In a Nutshell

Other than the tax penalties above, there are numerous other situations in which you can end up getting fined or even imprisoned for tax offences. The Income Tax Act of Malaysia deals with a variety of these tax offences.

To avoid this issue, it is highly recommended that companies rely on audit firms in Malaysia because these firms have professional and experienced auditors who know about the best practices of accounting and taxation. By relying on such professional services, you will not have to worry about getting penalized.

Moreover, individuals should also hire accounting services in Malaysia to get help in calculating the taxes and filing them on time. In short, these services will help you in avoiding tax penalties and help you in filing the taxes in an efficient, reliable, and timely manner.

For more information, feel free to get in touch with us.

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5 Ways Hiring An Accountant Can Save You Money

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Post date March 12, 2021
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5 Ways Hiring An Accountant Can Save You Money

Accountants now play a variety of roles in the overall efficiency and success of a business because their role is no longer limited to being just a professional who deals with the taxation of the company. Instead, the role and responsibilities of the accounting services in Malaysia have greatly expanded over a period of time.

Professional auditors and accounting firms have years of experience in dealing with a variety of businesses and common issues involved in running a company. Therefore, accounting services are important in giving reliable and efficient advice to the managers and business owners for better management.

Startups and small businesses often assume that hiring accounting services in Malaysia will put too much financial burden on their resources. However, relying on an accountant will help you in saving a significant amount of money in the following five ways:

1. Tax Advice

The taxation law and procedures in all countries, including Malaysia, are quite complex. Therefore, it is highly important to rely on the advice and help of professional accountants who are familiar with these tax procedures and can help your business in accurate and efficient taxation.

It can help you in saving money because you will only be paying the taxes that you actually have to pay. Without the knowledge of the laws and tax incentives in Malaysia, you can end up paying excessive amounts in taxes.

On the other hand, accounting services will make sure that your business is getting all of the available incentives and tax relief to help you in cutting down the tax bill.

2. Prepare Financial reports

Financial reporting is one of the most critical parts of any type of business. It is important to make sure that proper calculations are made to generate annual and quarterly financial reports and generate cash flow statements. The purpose of statements of cash flow is to determine the money flowing in and out of the company.

With accurate and reliable financial reporting, you are able to determine the financial health of different parts of your business. You can hire an audit firm in Malaysia to thoroughly evaluate your finances and prepare reliable reports that can ultimately help you in making better business decisions.

3. Business Growth

It is the goal of every other business to grow over a period of time. However, it is a common phenomenon that with a rise in the value and sales of a company, its management tends to become more inefficient due to a variety of reasons. Hiring professional accounting services in Malaysia will make sure that you get the best advice about the growth and overall management of your company’s finances.

An accountant is capable of managing all the expenses of company processes like expansion, production, and payroll management. Having an accountant will facilitate the entire process of business growth. They can also help

4. Free-up Your Time

When you are running a business, there are many things that you have to manage and consider to make your company successful. As a business owner, you can fully understand the importance of time. By hiring accounting services in Malaysia, you will save a significant amount of time, as the accountants will streamline the accounting functions of your company.

You will not have to worry about financial management, as all of these processes will be managed by the auditors and accountants.

Moreover, audit firms will make sure that all of the essential records are thoroughly maintained and important tax deadlines are met to avoid penalties. All of these services will ultimately help you in freeing up your schedule. Hence, you will have more time to spend in managing other parts of the business and build strong relationships with the clients.

5. Consulting

Accounting and audit firms work with a variety of businesses in different sectors, so they are fully familiar with the best practices that can help your business. Ultimately, the experience and expertise of the accountants are important in not only saving money but also optimizing the performance of the business.

In a Nutshell

In short, there are numerous advantages that you can enjoy by hiring professional accounting services in Malaysia.

Accountants can help you in financial management, payroll management, and efficient auditing to plan for business growth and improve the efficiency and productivity of your business to help you in making more profits.

For more information, feel free to get in touch with us.

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8 Reasons Why Good HR Service is Important for Your Organization

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Post date March 12, 2021
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8 Reasons Why Good HR Service is Important for Your Organization

Human Resources (HR) is a broad term that covers the management and development of the employees in an organization. The importance of having good HR services in your company cannot be understated because it has applications in many different areas of your business. Whether you are involved in the strategic planning of your business or want to hire a new batch of talent, you will need the help of professional payroll and HR services.

Reliable and efficient HR services can bring a significant boost in the productivity of your business and enhancing employee performance. It can help you in achieving your business goals. Following are eight main reasons why you should consider an accounting firm in Malaysia so that you can enjoy reliable payroll and HR services:

1. Recruitment and Onboarding

Professional HR recruiters are very familiar with the best strategies for hiring the best talent for your company. They can oversee the entire process of screening resumes to conduct thorough interviews and make sure the right people are appointed in your company.

Moreover, you will not have to worry about the quality of the recruitment and onboarding process, as all of it will be handled by the payroll and HR services.

2. Payroll Management

Payroll and HR services can help your business in establishing a smooth organizational culture and implement maximum fairness and transparency in payroll functions. You can get advice from the experts of the accounting firms in Malaysia to improve strategic decision-making and align your business processes with the business goals.

3. Benefits Analysis

HR experts implement the best recruitment strategies to cut down the unnecessary costs associated with the hiring process and turnover. These experts have the perfect skills to negotiate better terms and conditions that are fair for both the organization and the employees.

As a result, you do not have to exceed your budget to keep the employees happy. It will help your business in attracting the best talent to your company and retain your staff.

4. Risk Management

Providing safe working conditions is the primary responsibility of employers. Payroll and HR services also include risk management specialists who are familiar with the legal rules and regulations to ensure your company is complying with the code of conduct and has a safe organizational culture.

It also includes conducting regular training about workplace ethics and anti-harassment seminars to prevent such issues in the future. Risk management plays an important role in reducing the liability issues associated with unfair employment practices.

5. Training and Development

Conducting orientation for the new employees and regular training sessions for the existing employees is important to build a strong employer-employee relationship. By getting professional payroll and HR services, you will be getting access to the experts who have years of experience in training the employees to become the best fit in an organization.

It will also promote fair employment practices and facilitate the employee who aspires to be in management positions in the future.

6. Conflict Resolution

Conflicts are inevitable in the workplace. Even if you think that your staff is fully satisfied, some kind of dispute can always arise due to different situations. A professional HR specialist is fully equipped to deal with such arguments and disagreements to make sure that the conflict is fully resolved.

Quick conflict resolution is likely to increase employee satisfaction and restore positive working relationships throughout the company.

7. Compliance

Complying with the state, federal, and local rules and regulations can be challenging because there are many situations in which companies can unintentionally violate some rule. Such problems can easily be avoided by hiring a professional accounting firm that is familiar with the rules and regulations related to the accounting processes.

Similarly, payroll and HR services will ensure that your recruitment process and payroll management are in maximum compliance with the law.

8. Performance

In a Nutshell

These are the critical reasons why you should hire the best payroll and HR services. These services will ultimately give your company a much-needed boost in the productivity and efficiency of the business processes and employee performance.

For more information, feel free to get in touch with us.

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What is an Annual Return and How to File it?

Post author By admin
Post date March 12, 2021
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What is an Annual Return and How to File it?

After registering and incorporating your company in Malaysia, you will have to take care of several aspects of the business to ensure you are in complete compliance with the legal rules and regulations. One such requirement is filing annual returns, one of the most critical legal needs in Malaysia.

If you are not familiar with annual returns and how to file them, you have come to the right place. As in this article, you will get all of the essential information about it.

1. What is an Annual Return?

The Companies Commission of Malaysia makes it compulsory for every company in Malaysia to file an annual return. Generally, it is the responsibility of the company secretary to file an annual return. An annual return means the summary of your company’s profile that contains all of the important information about your business. Such information includes business address, office address, primary business activities, and general information about the directors and shareholders.

Malaysian law mandates organizations that offer various types of services to file their annual return. If the companies fail to file the annual return, they can face serious legal consequences, such as heavy penalties and even sanctions. Accounting firms in Malaysia help companies to file an annual return to ensure the smooth functioning of the business.

Hiring the services of a professional accounting firm in Malaysia has become necessary in most situations because an annual return is not a simple income tax return. In fact, it has different requirements and registration steps for various types of corporate entities. With the help of a competent and qualified company secretary and accounting firm, you will be able to streamline the process of filing the annual return.

2. When to File the Annual Return?

The Companies Act 2016 that has been enforced since January 2017, has separated the requirement of submitting financial statements from the submission of annual returns. Section 259 of the Companies Act 2016 makes it clear that the companies in Malaysia have to submit the financial statements and reports within 30 days from the anniversary of the incorporation date of the company.

On the other hand, section 68 of the Companies Act 2016 makes it mandatory for Malaysian companies to lodge their annual return with the Registrar of Companies (ROC) every year within a month from the anniversary of the incorporation date of the company. Therefore, the submission of the annual return is directly associated with the company’s incorporation date.

If you have hired a professional and competent company secretary, you should have no issue in following these deadlines because typically, it is the responsibility of the company secretary to file an annual return and make sure the company is in compliance with any other legal rules and regulations.

3. What is included in the Annual Return?

Under the Companies Act 2016, organizations in Malaysia have to submit the following things with their annual return:

Name, registration number, and registered office address of the company.
Type of company.
If the official records of the company are not kept at the registered address, then the other address must be provided.
Comprehensive details about all of the company directors, managers, shareholders, and secretaries.
Details about the shares held by particular company shareholders.
The entire process is digitalized, so companies can easily submit the forms and obtain a declaration from the MyCoID 2016 portal.

4. Penalties

Under section 340 of the Companies Act 2016, only public companies are required to hold the Annual General Meeting (AGM). On the other hand, it is no longer compulsory for Sdn Bhd to hold AGM each year. All of the company decisions can be made via circular resolutions without holding a physical meeting.

The Companies Act 2016 has greatly increased sanctions and penalties. If the company directors breach the Act, they can face up to 5 years of prison time or a fine of RM3 million or both.

5. Where to File an Annual Return?

Once all of the documents are prepared and the final annual return is ready, it has to be signed by a director or company secretary and submitted to the Companies Commission of Malaysia. The Companies Act 2016 states that the companies have to file annual returns within 30 days of the anniversary of the company incorporation date. The Registrar of Companies (ROC) will properly record and store these financial records of the companies in Malaysia.

2025 Update: MBRS 2.0 Mandatory for Annual Return Filing

Starting June 2025, all Malaysian companies must submit their Annual Returns through the My Government Reporting System (MBRS) 2.0. This update streamlines reporting via XBRL (eXtensible Business Reporting Language) and replaces manual filings entirely.

What’s New:

Filing must be done using MBRS mTool (offline tool for form generation)
All submissions require digital signature (e.g., eSignCloud)
No more physical forms or over-the-counter filing
Directors and company secretaries must be registered users on the MBRS portal

Tip: Familiarise yourself with MBRS early to avoid delays or rejections in 2025.

Annual Return Fee Breakdown (As of 2025)

Company Type	Annual Return Fee
Private Company (Sdn Bhd)	RM150
Public Company	RM500

Failing to file your Annual Return for 3 consecutive years may lead to company strike-off by SSM.

Annual Return Filing Timeline & Process (2025)

Step	Action	Estimated Time
1	Update company details via MBRS mTool	1 working day
2	Generate XBRL file & validate	1 working day
3	Upload to MBRS portal	1 working day
4	Digital signature by Company Secretary & Director	1 working day
5	Payment & submission confirmation	Immediate after upload
✅	Total Estimated Time	3–5 working days

Late Filing Penalties (Private & Public Companies)

Failing to file your Annual Return within the stipulated 30-day period from your incorporation anniversary may result in administrative penalties and statutory fines.

Late Lodgement Administrative Penalties (Private Company)

Delay After Due Date	Additional Penalty Fee
More than 7 days – 3 months	RM50
3 – 6 months	RM100
6 – 12 months	RM150
Over 12 months	RM200

Sample Checklist: Documents Required for Annual Return Filing

✅ Company Number
✅ Company Name
✅ Registered Office Address
✅ Principal Business Activities
✅ Shareholding Structure
✅ Company Secretary’s Information
✅ Digital Signature Tokens (from certified provider)
✅ Updated Financial Statements (if submitting together)

Mistakes to Avoid When Filing Your Annual Return

Submitting after the 30-day deadline
Using an outdated version of mTool
Not validating your XBRL files properly
Forgetting to apply the digital signature
Failing to appoint a certified company secretary

In a Nutshell

It is quite evident that filing an annual return is a critical responsibility of any company operating in Malaysia because not complying with this legal requirement can result in heavy penalties for the entire organization.

Therefore, it is highly important that you follow the procedures and deadlines discussed above to make sure you do not run into any kind of legal trouble and can run your business smoothly and efficiently.

For more information, feel free to get in touch with us.

Need Help Filing Your Annual Return?

ShineWing TY Teoh offers:

End-to-end MBRS filing support
Registered company secretaries
Annual compliance health check
Guidance on digital signatures and XBRL

Book a free consultation today