tax advisory malaysia

1. How to Close a Sdn Bhd Company in Malaysia: A Step-by-Step Guide Running a Sdn Bhd (private limited company) in Malaysia comes with its own set of responsibilities, from adhering to secretarial services Malaysia to managing taxes and corporate compliance. However, there may come a time when you need to close or dissolve your Sdn Bhd due to various reasons, whether it’s due to financial struggles, a shift in business strategy, or a decision to retire. The process of closing a Sdn Bhd company in Malaysia involves several legal steps, and it is important to follow the correct procedures to avoid penalties and ensure compliance with the Malaysian Companies Act 2016. In this guide, we will explain how to close a Sdn Bhd company in Malaysia, why secretarial services Malaysia are essential in this process, and how engaging a tax advisory Malaysia or tax consultant Malaysia can simplify the closure process. If you’re considering closing your Sdn Bhd, Consistant Info offers professional assistance in handling all aspects of business closure, including secretarial services Malaysia, tax consultation, and compliance management. Why Would You Need to Close a Sdn Bhd Company?

2. Before diving into the process, it’s important to understand why a business may decide to close its doors. Some common reasons include: • Financial difficulties: The company is no longer financially viable or profitable. • Change in business direction: The business owner decides to move in a different direction, such as selling the business or winding up operations. • Retirement: The business owner or directors may be retiring and no longer wish to continue operations. • Merger or acquisition: The company may be merging with another entity or being bought out. While closing a business might seem like a straightforward process, it involves several legal steps to ensure that you comply with the Companies Commission of Malaysia (SSM) and other relevant authorities. Steps to Close a Sdn Bhd Company in Malaysia 1. Appoint a Liquidator

3. One of the first steps in closing a Sdn Bhd company in Malaysia is to appoint a liquidator. A liquidator is a professional who will handle the winding-up process, which includes liquidating the company’s assets, paying off its debts, and distributing any remaining assets to shareholders. The liquidator can be a director or an external party, but in many cases, companies hire professionals to manage the process. If you need help finding a liquidator, you can engage a secretary company Malaysia to provide recommendations and manage the appointment. 2. Hold a General Meeting The next step is to convene a general meeting of the shareholders. During this meeting, a resolution to dissolve the company must be passed. If the company has creditors or liabilities, the liquidation process will be more complex and may require the approval of the creditors. The shareholders must vote in favor of winding up the company, and a special resolution is usually required. The directors and shareholders will also discuss the appointment of the liquidator and other formalities. 3. Notify SSM (Companies Commission of Malaysia) Once the resolution has been passed, the company is required to inform the Companies Commission of Malaysia (SSM) about the decision to close. You will need to file the relevant forms and provide a copy of the resolution to SSM to initiate the official winding-up process.

4. Failure to notify SSM properly can lead to fines and legal issues, which is why having an experienced secretarial services Malaysia provider can be beneficial. They can help you prepare and submit all necessary documents to SSM and ensure that the closure process proceeds smoothly. 4. Settle All Debts and Liabilities Before a company can be officially closed, it must settle all outstanding debts and liabilities. This includes paying off creditors, staff salaries, tax liabilities, and any other outstanding financial obligations. Engaging a tax consultant Malaysia or tax advisory Malaysia service is highly recommended during this stage. A professional tax consultant Malaysia can help you understand your tax obligations and ensure that all taxes, including income tax, Goods and Services Tax (GST), and other relevant taxes, are paid. This is crucial to avoid any future tax issues or penalties. 5. Liquidate the Company’s Assets After debts and liabilities are settled, the liquidator will sell or liquidate the company’s assets. This process involves selling any property, inventory, and other assets that the company owns. The proceeds from the sale will be used to pay off any remaining debts and liabilities. Any remaining assets will be distributed among the shareholders. 6. File Final Tax Returns

5. Before the company can be officially dissolved, you will need to file your final tax returns with the Inland Revenue Board of Malaysia (LHDN). This includes submitting your last income tax return and ensuring that all outstanding tax payments are made. Your tax advisory Malaysia service can guide you through this process, ensuring that all tax returns are filed correctly, and any final payments are made. It's crucial to complete this step to avoid penalties or issues with the tax authorities after the company is dissolved. 7. Submit the Winding-Up Documents to SSM Once the company’s assets are liquidated and all debts are settled, the liquidator will prepare a final report and submit it to SSM. This report will include details of the liquidation process, the distribution of assets, and the settlement of liabilities. After SSM reviews the final report, they will officially remove the company from the register, and the company will be legally dissolved. 8. Officially Dissolve the Company Once SSM has processed the winding-up documents and confirmed that everything is in order, your company will be officially dissolved. You will receive a notification of dissolution, and your company will no longer be legally recognized as an active business entity. The Role of Secretarial Services in Closing Your Company Throughout the process of closing your Sdn Bhd company in Malaysia, secretarial services Malaysia play a crucial role in ensuring compliance with local laws and regulations. A professional secretary company Malaysia can assist with preparing necessary documents, filing with SSM, managing shareholder meetings, and ensuring that all corporate governance requirements are met. Some of the specific ways secretarial services Malaysia can help include: • Drafting resolutions: A corporate secretary can assist in drafting the resolutions required to close the company and ensure that they meet legal requirements. • Filing forms with SSM: They can handle the submission of necessary documents to SSM, ensuring everything is filed in a timely manner. • Ensuring compliance: A corporate secretary ensures that all legal and regulatory obligations are met throughout the closure process, reducing the risk of penalties or disputes. Why You Need a Tax Consultant Malaysia Closing a company also involves dealing with various tax matters, which can be complex and time- sensitive. A tax consultant Malaysia or tax advisory Malaysia can provide the expertise needed to ensure that your company meets all its tax obligations during the dissolution process. They can guide you on: • Finalizing tax filings: Ensure all taxes, including income tax and GST, are filed correctly. • Tax clearance: Help you obtain a tax clearance certificate from the Inland Revenue Board of Malaysia (LHDN), which is required for the company’s dissolution.

6. • Minimizing tax liabilities: A tax consultant can help you identify any tax-saving opportunities or exemptions available during the winding-up process. Having a tax advisory Malaysia professional ensures that all financial matters are handled properly, avoiding any future disputes with the authorities. Contact Info A-12-05, Ekocheras Office Suites, No, 693, Jln Cheras, Batu 5, 56000 Cheras, Federal Territory of Kuala Lumpur Email: support@consistantinfo.com.my Phone: +6011 3669 6823