How to Liquidate a Company in Malaysia

Do you need to liquidate a company in Malaysia? This article explains the key methods & conditions. You can access our online services in this matter and collaborate with our Malaysian specialists.

What is the legislation for closing a company in Malaysia?

Companies Act 2016 – Section 550.

What are the methods to close a company in Malaysia?

• Voluntary liquidation,
• Compulsory or strike off.

When is the voluntary method used to close a company in Malaysia?

• If solvent.
• If it is restructured.

When can a company be closed in Malaysia?

• If it does not have any activities,
• It has no assets or liabilities,
• It is solvent, etc.

Interested in closing a company in Malaysia? You can explore this infographic first:

How is the liquidation process of a company done in Malaysia?

Striking off:

• shareholders approve the process via a resolution,
• must ensure there are no liabilities or pending legal disputes,
• there are no outstanding assets, etc.

IMPORTANT:

• the company secretary files the application with the Companies Commission of Malaysia (SSM),
• a small fee is paid,
• the notice of closing/striking off the company must be published in the Official Gazette in Malaysia.

Voluntary:

• a declaration of solvency by the directors starts the process (members' voluntary winding up; an insolvent company goes into creditors' voluntary winding up),
• a special resolution must be approved by 75% of shareholders,
• a licensed liquidator must be appointed,
• all debts must be paid in full within the period stated in the declaration of solvency (max. 12 months),
• the liquidator ensures that a tax clearance is issued by the Inland Revenue Board in Malaysia,
• all remaining assets must be distributed.

NOTES:

• an Extraordinary General Meeting (EGM) is held at the time the company liquidation decision is made,
• the SSM issues a document stating the company dissolution in Malaysia.

What happens to the company assets during the dissolution process?

• company equipment and inventory can be sold,
• business contracts can be transferred or closed,
• deposits can be recovered,
• various investments can be disposed of, etc.

Our lawyers invite you to watch the following video on the company liquidation process in Malaysia:

What is the time frame to close/liquidate a company in Malaysia?

• 6-12 months for strike-off company liquidation,
• 9-12 months for voluntary company liquidation.

What happens when the company dissolution process is concluded? Is there anything important left to do?

• shareholders or the liquidator must maintain the company documents for at least 7 years,
• must deactivate from the Provident Fund,
• must close all corporate bank accounts, etc.

In addition to the services offered for winding up a company in Malaysia, our local specialists can also help you with other information or guidance. For example, we can assist you with immigration to Malaysia. Moreover, those already established can apply for citizenship in Malaysia. If you need further information on the liquidation process of a Malaysian company, please contact our law firm in Malaysia for legal representation on this matter.