No Audit Requirements for Small Companies in Malaysia
Updated on Friday 22nd September 2017
The Practice Directive released by the Companies Commission of Malaysia changes the provision for mandatory auditor appointment for private companies in Malaysia. The Registrar can exempt companies according to a number of criteria and conditions, among which:
- dormant companies;
- companies with zero revenue;
- companies can qualify to the threshold.
For dormant companies, the Directive is effective in those cases where the company is incorporated in Malaysia until 31 January 2017 (including this date) and its financial statements commencing on or after this date. For companies incorporated before 30 January 2017, the financial statements should have a commencement date on or after September 1st, 2017.
The experts at our law firm in Malaysia can provide you with detailed information on how the Directive applies if you have a dormant company or a company with zero revenue.
Companies can also qualify for a specific threshold in order to be exempt from appointing an external auditor during every financial year.
Small companies in Malaysia are exempt if they satisfy these three criteria:
- a revenue per year of 100,000 RMN or less;
- assets at the end of the year of 300,000 or less;
- no more than five employees per year.
These conditions must be met bot in the current financial year and in the two previous financial years. One of our lawyers in Malaysia can give you more information on how these criteria apply.
You can contact the experts at our law firm in Malaysia for more information on the audit requirements in case of different types of companies.
Small companies in Malaysia can be exempt from having to appoint an auditor. The criteria for this exemption is set forth in the Practice Directive, released as a clarification of the Companies Act 2016. Prior to this clarification issued by the Companies Commission, the law stated that private companies needed to appoint an auditor for each financial year. One of our lawyers in Malaysia can help you with detailed information on this matter and other issues concerning the Companies Act.
Exemptions from appointing an auditor for companies in Malaysia
The Practice Directive released by the Companies Commission of Malaysia changes the provision for mandatory auditor appointment for private companies in Malaysia. The Registrar can exempt companies according to a number of criteria and conditions, among which:
- dormant companies;
- companies with zero revenue;
- companies can qualify to the threshold.
For dormant companies, the Directive is effective in those cases where the company is incorporated in Malaysia until 31 January 2017 (including this date) and its financial statements commencing on or after this date. For companies incorporated before 30 January 2017, the financial statements should have a commencement date on or after September 1st, 2017.
The experts at our law firm in Malaysia can provide you with detailed information on how the Directive applies if you have a dormant company or a company with zero revenue.
The threshold exemption criteria
Companies can also qualify for a specific threshold in order to be exempt from appointing an external auditor during every financial year.
Small companies in Malaysia are exempt if they satisfy these three criteria:
- a revenue per year of 100,000 RMN or less;
- assets at the end of the year of 300,000 or less;
- no more than five employees per year.
These conditions must be met bot in the current financial year and in the two previous financial years. One of our lawyers in Malaysia can give you more information on how these criteria apply.
You can contact the experts at our law firm in Malaysia for more information on the audit requirements in case of different types of companies.