Guide to the Voluntary Strike-Off of the Company in Malaysia

If you own a business in Malaysia that is no longer operational, the optimal approach to formally closing it is through the voluntary strike-off of the company in Malaysia. This method is generally efficient, straightforward, and cost-effective, assuming you meet the necessary requirements.

This comprehensive guide provides a clear explanation of the voluntary strike off meaning, outlines the critical conditions your company must fulfill, and thoroughly details the company voluntary strike off procedure.

What Does Voluntary Strike Off Mean?

Let’s start with the basics. The voluntary strike-off of the company in Malaysia refers to the formal process of removing a company’s name from the register maintained by the Companies Commission of Malaysia (SSM). Once a company is struck off, it ceases to exist as a legal entity.

Unlike liquidation, which is typically lengthy and may involve a licensed liquidator or court supervision, voluntary strike-off is a quicker and simpler route. It’s suitable for companies that are:

• Inactive or dormant
• Solvent with no liabilities
• No longer needed by the owners

Offshore Company Corp collaborates with licensed company secretaries in Malaysia to support your strike-off process.

Definition of Voluntary Strike-Off of the Company in Malaysia

Conditions for Voluntary Strike-Off of the Company in Malaysia

Before jumping into the paperwork, there are a few important conditions for voluntary strike off in Malaysia that you must meet. These are in place to protect stakeholders and ensure the company is truly ready to close.

Here’s what your company needs to qualify:

1. No longer in business – The company must have ceased operations for at least 12 months before applying.
2. No outstanding debts – This includes taxes, EPF, SOCSO, or any other financial obligations.
3. No assets or liabilities – The balance sheet should be clean, with nothing owed or owned.
4. No ongoing legal cases – The company cannot be involved in any lawsuits or legal claims.
5. Directors and shareholders agree – Everyone on board must agree to close the company.
6. Not a regulated business – Companies in sectors like banking, insurance, and finance may have extra rules to follow or may not be eligible.

If your business checks all those boxes, you’re good to move forward.

Conditions for Voluntary Strike-Off of the Company in Malaysia

The Company Voluntary Strike Off Procedure: Step by Step

The company voluntary strike-off procedure is pretty clear-cut, but it’s important to do it right the first time. Here’s how the process works in Malaysia:

Step 1: Internal Agreement

First, the directors need to pass a resolution agreeing to strike off the company. After that, a general meeting with shareholders is held, and at least 75% must approve the decision unless the company’s Constitution states otherwise.

Step 2: Prepare the Documents

Once the internal agreement is in place, you'll need to prepare several documents to submit to SSM, including:

• Form STRIKE OFF (Application under Section 550 of the Companies Act 2016)
• A declaration by all directors that the company is no longer operating and has no liabilities
• A resolution from the directors and shareholders
• Copies of clearance letters, if needed, from authorities like LHDN or EPF

Step 3: Submit to SSM

Next, you file the application and all supporting documents with the Companies Commission of Malaysia. There's a small fee involved, and SSM will take some time to review your case.

Step 4: Wait for Public Notification

If everything is in order, SSM will publish a notice in the Government Gazette. This is a public notice that gives anyone 30 days to object if they have a valid reason, such as an unpaid debt or legal dispute.

Step 5: Final Approval

If there are no objections, SSM will issue a final notice confirming that the company has been officially struck off. At this point, the company legally ceases to exist.

Steps for a Company Voluntary Strike Off Procedure

A Few Things to Do Before You Strike Off Company

Even if your business is inactive, you can’t just walk away from it. Here are a few final tasks you should complete before applying for the voluntary strike off of the company in Malaysia:

• Close your bank accounts – All corporate accounts must be closed.
• Cancel licenses and contracts – This includes business licenses, tenancy agreements, or any recurring services.
• File all outstanding tax returns – Even if you haven’t been operating, you must file up-to-date tax documents.
• Handle employee matters – Make sure you’ve paid any salaries or benefits and properly documented employment terminations.

Things to Do Before You Strike Off Company

Why Choose Offshore Company Corp for Your Strike-Off?

Partnering with Offshore Company Corp ensures your voluntary strike-off is handled expertly from start to finish. Our experienced team offers:

• Initial Compliance Checks: We evaluate your eligibility thoroughly before initiating the process.
• Professional Document Handling: We prepare, review, and manage all documentation accurately and efficiently.
• Seamless Coordination: Direct liaison with SSM and other regulatory authorities to streamline your application.
• Timely Processing: Our swift processing helps you avoid delays or non-compliance penalties.

Can a Company Be Restored After Strike Off?

Yes. Under Section 555 of the Companies Act 2016, a company that has been struck off may be restored by a court order within 7 years. However, reinstatement can be a costly and lengthy process, often involving legal fees and documentation reviews.

It’s important to be 100% certain that striking off is the right move. If you're unsure, Offshore Company Corp can offer you a consultation and walk you through the pros and cons of each exit strategy.

Final Thoughts

The procedure for the voluntary strike off of a company in Malaysia might seem overwhelming at first, but with the right guidance, it can be a smooth and manageable process. Whether your company has fulfilled its purpose or simply didn’t take off, striking it off officially is the responsible and professional thing to do.

By understanding the voluntary strike off meaning, meeting all the conditions for voluntary strike off in Malaysia, and following the proper company voluntary strike off procedure, you can close your business cleanly and confidently.

If you're unsure about the process or want help preparing your documents, it's always a good idea to speak with a corporate services provider or a company secretary. They’ll ensure you’re doing everything by the book and help you avoid any unexpected issues.