Striking Off a Company (Sdn. Bhd.) After Cessation of Business 公司停止营业后的注销（Strike-Off）（私人有限公司 Sdn. Bhd.）
Striking Off a Company (Sdn. Bhd.) After Cessation of Business 公司停止营业后的注销（Strike-Off）（私人有限公司 Sdn. Bhd.）
Striking Off a Company (Sdn. Bhd.) After Cessation of Business
This advisory is issued to guide company directors and shareholders whose Sdn. Bhd. has ceased business operations due to financial, commercial, restructuring, or strategic reasons. If a company is no longer operating and has no intention to resume business, it is important to take prompt steps to strike off the company in accordance with Section 550 of the Companies Act 2016. Failure to do so may result in ongoing statutory obligations, penalties, and unnecessary compliance costs, even though the company is inactive.
1. Why Strike-Off Is Necessary A company that is dormant or inactive is still legally required to comply with statutory obligations, including:
Filing annual returns with SSM
Maintaining a registered office
Preparing financial statements
Fulfilling directors’ duties under the Companies Act 2016
Non-compliance may expose directors to:
Late filing penalties
Compounding offences
Increased professional and regulatory costs
Striking off the company ensures proper closure and relieves directors from future compliance obligations.
2. Eligibility for Strike-Off A company may apply to be struck off if it meets the following conditions:
Business operations have ceased
There is no intention to resume business
The company has no assets and no liabilities
All bank accounts have been closed
There are no outstanding charges registered with SSM
There are no pending legal actions
All tax matters with LHDN are settled or confirmed inactive
All statutory filings are regularised or resolved
3. Overview of the Strike-Off Process Step 1: Assessment & Confirmation
Directors confirm that the company has ceased operations and meets the strike-off criteria. Step 2: Compliance Clearance
All outstanding matters are resolved, including:
Tax status (LHDN)
Statutory bodies (EPF, SOCSO, EIS, if applicable)
Creditors, debtors, and bank accounts
Step 3: Application to SSM
An application for strike-off is submitted under Section 550, supported by directors’ declarations. Step 4: Public Notice by SSM
SSM will publish a notice. If no objection is raised within the stipulated period, the application proceeds. Step 5: Company Struck Off
The company is officially removed from the register, and directors’ statutory obligations cease.
4. Importance of Timely Action Delaying the strike-off process may result in:
Accumulation of late filing penalties
Increased compliance and professional fees
Continued exposure of directors to regulatory enforcement
Taking early action helps to minimise costs, reduce legal risks, and ensure a clean exit from the company.
5. Directors’ Responsibility Directors are responsible for ensuring that:
All information provided is accurate and complete
The company has no outstanding liabilities at the time of application
No business activities are carried out after submission
Providing false or misleading information may result in legal consequences.
6. Our Recommendation If your company has ceased operations, we strongly recommend initiating the strike-off process promptly. Proper planning and compliance review will ensure a smooth, efficient, and compliant closure of the company.
Singapore
