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Business Termination FAQ

If you would like business advice or professional help regarding how to proceed business termination in Malaysia, please contact us or get a quote from our friendly team of business advisors.

Sole-proprietor and Partnership

You can terminate your sole-proprietorship or partnership by following these steps:

  • Complete the Notice of Termination for Registered Business (FORM C)
  • Ensure every business owner and partner has signed the completed Form.
  • Submit the application to the counter or online via CCM e-Lodgment services in the SSM’s website at www.ssm.com.my.

Be sure to contact us if you need help with your business termination.

Documents to be enclosed are as follows:

  • Business Registration Certificate;
  • Photocopy of owner and/ or partner’s identity card;
  • Photocopy of death certificate in the event of termination due to the death of owner or an associate partner;
  • A copy of the court order if termination has been ordered by court; and
  • Relevant documents if the owner has become bankrupt.

The fees incurred for termination are as follows:

  • Notification of Termination of Registered Business – No fee
  • Business Information Print-out – RM10 (subject to change by the government)

Please register within thirty (30) days from the date of business termination.

No problem! A registered business that has not expired is allowed to submit Notice for Termination of Registered Business.

Please submit the Notification (as a result of the death of the owner) within four (4) months from the date of cessation of the deceased.

Result of application can be obtained within fifteen (15) minutes from the time submission is made.

Your bank account can be closed after settling all debts and liabilities and before submitting the notice for termination.

All stocks should be sold off before the termination of the business.

Yes. It is an offence, for any person responsible for the business or a personal representative or next-of-kin or a remaining partner, to fail to file a notice of termination where a business has been terminated. If you are convicted of such an offence, you will be liable for a fine not exceeding RM10,000 or imprisonment for a term not exceeding one (1) year or both.

Sdn. Bhd.

A Sdn. Bhd. can be terminated by either:

  • Strike off
  • Members’ voluntary winding up

Choosing the right platform will depend on your circumstances.

If you decide to terminate your company, speak to a professional advisor like TJW to advise you based on your company’s circumstances. We can assist you to shorten the termination process and save costs.

The answer depends on your chosen platform and circumstances:

Strike off

May take around 3 to 6 months, depending on SSM approval.

Members’ Voluntary Winding Up

May take around 6 months to 2 years, depending on clearance letters from relevant authorities.

For more information about terminating your company, contact us today and our highly experienced team will be in touch with you shortly.

The answer depends on your chosen platform and circumstances:

Strike off

All directors and shareholders shall approve the resolution to authorise termination of the company.

Members’ Voluntary Winding Up

  • Declared by the majority or all of the directors (following the constitution of the company) that in their opinion, the Company will be able to pay its debts in full within a period of 12 months from the commencement of the winding up; and
  • Approved by at least 75% of the members that the company will be liquidated via members’ voluntary winding up.

Strike off is better suited to a company that is not in business or incurring loss and unable to bear the winding up fees, whereas winding up is better suited to a solvent company where the directors must form an opinion that the company will be able to pay its debts in full within a period of twelve (12) months after the commencement of winding up of a company.

If you are unsure of what to do about your business termination, please contact us today and we’ll be able to assist you, shorten the process and reduce your costs.

As termination takes time, common issues during the termination process include:

Strike off

No transaction should occur with anyone including related parties and the bank account should be closed.

Members’ Voluntary Winding Up

The bank account balance cannot be removed until the completion of the process.

Strike off

Before the strike off process

Members’ Voluntary Winding Up

After the completion of the winding up process

All stocks should be sold off before the termination of the company.

Strike off

All money shall be drawn out and the bank account closed before the strike off process.

Members’ Voluntary Winding Up

The money can only be drawn after the completion of the winding up process.

Strike off

Yes. Any person may lodge with the Registrar a Notice of Intention To Object Striking Off Application, within 30 days from the date specified in the notice or publication of notification, together with a prescribed fee of RM300 (subject to change by the government) and the necessary supporting documents demonstrating:

  • that the company is still carrying on business or there is another reason for it to continue existing;
  • that the company is a party to legal proceedings;
  • that the company is in receivership or liquidation; or both;
  • that the person is a creditor or a member or a person who has an undischarged claim against the company;
  • that the person believes that a right of action exists, and they intend to pursue such right of action on behalf of the company; or
  • that, for any other reason, it would not be just and equitable to remove the company from the register.

Members’ Voluntary Winding Up

No one has the authority to object to the voluntary winding up process, unless a court order has been applied.

Strike Off

Yes, with a prescribed fee of RM500 (subject to change by the government).

Members’ Voluntary Winding Up

The winding up process can only be terminated before the members’ meeting that was held to dissolve the company. If the process has already started, you will need to apply for a court order.

Yes, this should be continued until the Income Tax Return Form (Form C) and Employment Record (Form E) have been cancelled successfully.

Strike off

After receiving Section 551(3) from SSM in the Website Status 308/550.

Members’ Voluntary Winding Up

  • After receiving tax clearance from IRB, a final meeting will be conducted and the balance in the bank will be distributed to the shareholders.
  • The form “Section 459(3), (4) – Return by liquidator relating to final meeting” will be completed and filed to SSM within 7 days after the final meeting.
  • After Section 459(3), (4) has been filed to SSM, the Company will be dissolved after 3 months.

Strike off

Records must be kept for 7 years.

Members’ Voluntary Winding Up

Records can be disposed of 3 months after the final meeting.

Limited Liability Partnership

An LLP can be terminated by either:

  • Voluntary Winding Up; or
  • Striking off the register by the Registrar

An LLP can be struck-off the register by the Registrar if the Registrar has reasons to believe that the LLP is no longer carrying on business;

  • The LLP contravened the Act;
  • The LLP is prejudicial or causing harm to national interests;
  • No liquidator is acting in cases of court-ordered winding up; or
  • Affairs of the LLP have been fully wound up but there are no sufficient assets to pay the costs to obtain the court order to dissolve the LLP.

The partners of LLP may give reasons why its name should not be struck-off the register within 30 days of the date specified in the notice or a longer period as extended by the Registrar.

Where an LLP has ceased to operate and has discharged all its debts and liabilities, a partner of the LLP can apply to the Registrar for a voluntary winding up of the LLP, provided all the conditions required under the LLP Act 2012 for voluntary winding up application are met.

An online submission can be done via https://www.myllp.com.my.

The applicant must be one of the partners and must be registered as a Verified User or Verified Professional User. Alternatively, a Compliance Officer who is also a Partner may also apply.

The applicant is required to upload:

  1. A written notice from the Inland Revenue Board of Malaysia stating that it has no objection to the Registrar making a declaration of dissolution of the limited liability partnership;
  2. A copy of the notice sent to all partners (Notice to partners + proof of acknowledged receipt/registered post);
  3. Copies of the publication made in the newspapers (i.e. Advertisement in BM newspaper & Advertisement in English newspaper); and
  4. A Statutory Declaration.

For a hassle-free process, talk to professional advisors such as TJW Group of companies. Kindly contact us for further information, and our highly experienced team will get back to you.

The applicant may withdraw the application at any time before the declaration of dissolution is made by the Registrar by writing to the Registrar indicating the reasons for the withdrawal of the application. There is a withdrawal fee of RM100 (subject to change by the government).

Any partner or creditor of the LLP may make an objection against the proposed dissolution of the LLP within thirty (30) days from the date of the posting of the notice to the Registrar or from the date of the publication of the notice in the newspaper, whichever is the later.

The objection may be made in writing to the Registrar at the following address:

Director Registration Services Division (Insolvency Section) Suruhanjaya Syarikat Malaysia

Level 19, Menara SSM@Sentral,

No. 7 Jalan Stesen Sentral 5,

Kuala Lumpur Sentral, 50623

Kuala Lumpur.

Email: enquiry@ssm.com.my