Malaysia company renewal in 2024

Sometimes, our Clients require our assistance to renew their Malaysian company. Below is all the information required to complete Malaysia company renewal.

• Malaysia Company renewal steps

  • Healy Consultants Group will send renewal reminder email, along with a renewal invoice and bank account details, to our Client;
  • Healy Consultants Group will acknowledge our Client’s funds transfer, and will send an email with a paid invoice and re-engagement letter and engagement details;
  • Healy Consultants Group’s Accounting Team will complete the accounting and tax deliverables for our Client’s company.

• Independent statutory annual audit

  • All incorporated companies must undergo an annual audit of their financial statements, carried out by a Malaysian audit firm registered by the Malaysian Institute of Accountants (MIA);
  • Healy Consultants Group will assist in preparing the audited financial statement, in compliance with Malaysian regulations.

• Accounting and Tax Considerations

  • No later than 30 days from the anniversary of the incorporation date, a Malaysian private limited company (Sdn Bhd) must lodge an annual return for each calendar year with the Companies Commission of Malaysia (SSM);
  • Company directors must prepare the company’s audited financial statements within 18 months of the date of incorporation and, subsequently, within six months of the financial year-end. These audited financial statements must be independently certified by government-approved auditors and circulated to all shareholders within six months of the financial year-end. The statements must, thereafter, be lodged with SSM within 30 days;
  • Companies registered in Malaysia must determine and submit an estimate of their tax payable for the year of assessment 30 days before the beginning of the basis period. For example, if the financial period is 1 January 2019 to 31 December 2019, the estimate must be submitted before 30 November 2018;
  • Though not required to since 2014, SMEs (<RM2.5 million in paid up ordinary share capital) are advised to submit an Estimate of Tax Payable form without declaring any amount, to avoid any penalty for under-estimation of tax, or penalty for non-submission being incorrectly imposed by the IRB.

• Legal and Compliance

  • Under the Companies Act 2016, incorporation of a Malaysian company can be completed by individuals. The basic requirements are:
    • Private company – at least one director who ordinarily resides (by having a principal place of residence) in Malaysia, and one promoter; or
    • Public company – at least two directors who ordinarily reside in Malaysia by having a principal place of residence in the country, and a minimum of one promoter.
  • Failure to file an annual return is an offence, and attracts a fine not exceeding RM5,000 if the filing deadline is not met, and a further fine of up to RM1,000 for each day thereafter;
  • Failure to prepare audited financial statements is an offence, and attracts a fine not exceeding RM5,000, or imprisonment up to one year, or both;
  • If the balance of tax payable is not paid by the due date, a 10% penalty will be imposed on the outstanding amount. If the tax payable and penalty is still outstanding within 60 days from the due date, an additional 5% penalty will be imposed on the tax and penalty outstanding.

• Malaysia company renewal fees

  • Healy Consultants Group’s fees for Malaysia company renewal are US$13,695 for an active company, and US$950 for a dormant company.