MYS Company Annual Audit

The Malaysian department has further optimized the company's annual review policy to reduce the compliance burden of small and medium-sized enterprises. According to the "Company Act 2016" and the new audit exemption regulations, qualified companies can be exempted from audit requirements, but the annual review process still needs to strictly follow the statutory procedures. For example, the Malaysian Registrar of Companies (SSM) has made it clear that the first phase of the audit exemption policy will cover companies with a turnover of no more than RM1 million and no more than 10 employees, and dormant companies are also applicable. At the same time, the overdue penalty mechanism remains strict, and companies need to plan in advance to avoid legal risks. In this context, understanding the annual review requirements, processes and fees, and choosing professional service agencies are the key to maintaining compliance operations for companies.

Core requirements for annual review of Malaysian companies

Financial statements and audits

All companies must submit financial statements (balance sheet, income statement, cash flow statement) approved by the board of directors, and determine whether an audit is required based on the size and industry.

Exemption policy:

Phase I: Companies with a turnover of ≤RM1 million, total assets ≤RM1 million, employees ≤10 people, or dormant companies are exempt from audits.

Phase 3: The threshold is raised to turnover ≤ RM3 million and employees ≤ 30 people (please pay attention to SSM's subsequent announcement).

Annual declaration form and document update

Submit company registration information (such as shareholders, director list), registered address update, equity structure change and other documents to SSM.

Dormant companies must also complete annual declarations, otherwise they may face the risk of cancellation.

Tax compliance

Complete corporate income tax declaration within 6 months after the end of the fiscal year (tax rates are divided into 17% and 24% in two grades), and submit employee salary and social security payment records.

Overdue fines are accumulated daily. For example, if the declaration is not made for more than 42 days, a fine of RM50 will be imposed, and a fine of RM200 will be imposed for overdue for more than 12 months (refer to SSM announcement).

Detailed explanation of the annual review process

Preparation stage

Document arrangement: collect financial records (bank statements, invoices, contracts), employee salary data, shareholder resolution documents, etc.

Financial statement preparation: Generate reports according to Malaysian Accounting Standards (MAS), and dormant companies must indicate "no actual business".

Audit and declaration

Audit execution: Non-exempt companies need to hire a registered auditor to review their financial statements and submit an audit report within 6 months.

Online submission: Upload the annual declaration form, financial statements and audit report (if applicable) through the SSM official website.

Taxation and compliance

Income tax declaration: The tax amount is calculated based on the profit of the fiscal year, and April is the deadline for employees to submit their reports.

Update of registered address: Make sure the address is valid, otherwise it may affect the delivery of documents and legal effect.

Annual review fee composition and reference standards

Basic fees

Department annual review fee: about RM200-500, depending on the company's capital and business type.

Audit fees:

Normal operating companies: RM2,800-6,000 (small companies), large companies may reach more than RM20,000.

Dormant companies: The fee is halved, about RM1,400-3,000.

Tax declaration fee: RM500-2,000, complex tax issues may be charged extra.

Additional costs

Registration agent fee: about 300-800 MYR/year, for address maintenance and document submission.

Overdue fine: up to 200 MYR (refer to SSM fine details).

Why choose NEO?

Policy interpretation and exemption optimization

The NEO team has conducted in-depth research on the new audit exemption regulations, which can help companies accurately determine whether they meet the exemption conditions and avoid unnecessary audit expenses. For example, for companies that meet the conditions in the first phase, at least 2,800 MYR in audit fees can be saved.

Full-process compliance management

Provide "one-stop" service, from financial statement preparation, document submission to tax declaration, to ensure that the annual review is completed within 6 months and avoid overdue risks.

Use digital tools (such as QuickBooks) to optimize account management and reduce manual errors.

Cost control and risk warning

Through advance planning and resource integration, companies can save 15%-30% of annual review costs. For example, dormant companies can directly enjoy fee reduction programs.

Regularly remind the annual review deadline and monitor the progress of tax declaration to avoid fines.

Localized services and multilingual support

With a branch in Malaysia, we are familiar with the SSM process and local regulations, and can quickly handle document submission and communication.

Providing bilingual services in Chinese and English to help Chinese companies efficiently cope with compliance challenges.

While simplifying the process and lowering the threshold for annual review of Malaysian companies, compliance requirements must still be strictly followed. Companies need to take into account their own scale and financial situation, make full use of exemption policies, and choose professional service agencies to reduce risks and costs. With a deep understanding of local regulations and efficient services, NEO helps companies move forward steadily in their global layout.