MYS Company Deregistration

With the global economic fluctuations and the acceleration of corporate strategic adjustments, the demand for deregistration and transfer of Malaysian companies has increased significantly. For example, Goodyear Tire, a global tire manufacturer, announced the closure of its Malaysian factory in March 2024, affecting more than 500 employees, and plans to cut costs of US$1 billion through restructuring. This case highlights the need for companies to optimize resource allocation through deregistration or transfer. The latest data from the Malaysian Companies Commission (SSM) shows that the number of deregistration applications in the first quarter increased by 20% year-on-year, reflecting the importance of corporate compliance processes. Combined with the latest policies and cases, the deregistration requirements, procedures, fees and professional service selection points will be explained in detail.

Core requirements for deregistration of Malaysian companies

Tax and debt settlement

Tax settlement: It is necessary to apply for a "tax no objection certificate" from the Malaysian Inland Revenue Board (LHDN) to ensure that all corporate income tax, sales and service tax (SST) and stamp duty have been settled.

Debt settlement: Pay off debts such as supplier arrears, employee salaries, rent, etc., and provide written proof.

Shareholder and director resolutions

Written resolution: Convene a shareholders' meeting or board of directors to form a deregistration resolution and sign and confirm. For example, in the Goodyear case, the board of directors' resolution to close the factory is a key prerequisite for the deregistration process.

Document preparation

Basic documents: Certificate of Incorporation, Business Registration, and a copy of the company's articles of association.

Financial documents: Audited balance sheet, income statement, and liquidation report to prove that asset disposal and debt repayment are complete.

Announcement and publicity

Announcement requirements: Publish the deregistration announcement in the official newspaper of Malaysia. The publicity period is usually 30 days, during which creditor objections need to be handled.

Detailed explanation of the deregistration process

Decision-making and liquidation stage

Hold a shareholders' meeting: pass the deregistration resolution and designate a liquidation person in charge.

Asset liquidation: sell or distribute the remaining assets, repay debts, and ensure that the funds are transferred.

Document submission and review

Submit application: Submit Form 66 (Voluntary Deregistration Application Form), tax certificate, audit report and other documents to SSM, and pay department fees (approximately RM500-2000).

Announcement process: Publish the announcement in the designated newspaper. After the public notice period ends, SSM will approve the cancellation after reviewing without objection.

Subsequent procedures

Closing bank accounts: Cancel the company's bank account to ensure that the funds are cleared.

Handling licenses: If it involves special industries, the relevant business licenses must be cancelled.

Cancellation fee composition and reference standards

Department fees

SSM application fee: about RM500-2000, depending on the type and size of the company.

Announcement fee: The cost of publishing the announcement in the newspaper is about RM1000-3000.

Professional service fee

Agency service: If the agency is entrusted to handle the documents, the fee is about RM1,500-5,000 (including document preparation, translation and submission).

Tax and audit: If a third-party audit is required, the fee is about RM2,000-10,000, depending on the complexity of the company.

Liquidation and dispute resolution

Voluntary liquidation: The fee is about RM5,000-10,000 (applicable to companies with simple assets).

Forced liquidation: If there is a debt dispute, the court needs to intervene, and the cost may be as high as RM10,000-30,000.

Other potential costs

Late payment fees and fines: Failure to submit annual reports or tax returns on time may result in fines of RM200-2,000/item.

Why choose NEO?

Localized compliance team

Familiar with the latest SSM policies and procedures, such as the new regulations that shorten the announcement period to 30 days, to ensure that the documents are reviewed in one go.

Full-process agency service

From resolution drafting, document translation, announcement publication to department submission, we provide a "one-stop" solution. For example, in the Goodyear case, the agency can complete the entire process from resolution to cancellation certificate within 3 months.

Risk control and cost optimization

Avoid repeated submissions and reduce the risk of delays through pre-examination of documents. For example, check tax certificates and debt lists in advance to reduce objection disputes during the announcement period.

Transparent fees and efficient services

Clear quotations do not contain hidden fees, and provide expedited channels to shorten the deregistration period to 3-6 months (the conventional process takes 6-12 months).

The compliance threshold and complexity of company deregistration in Malaysia continue to increase. Enterprises need to pay attention to core links such as tax liquidation and public announcements, and use professional institutions to avoid fines and legal risks. With a deep understanding of local laws and regulations and efficient services, NEO helps enterprises successfully complete deregistration or transfer, achieve resource optimization and compliant exit.