Clear costs and a simple timeline help directors decide the best exit for a small business in Malaysia. Under the companies act 2016, striking off is the formal route for a non-operational, asset-free company. The basic SSM application fee is RM100, while objections or withdrawals raise that charge to RM300 or RM500 respectively.
The full process includes an application, a 30-day public notice, and publication in the Federal Gazette. Once the Gazette appears, legal dissolution occurs and the company ceases to exist. Typical timelines range from about six to fifteen months, depending on review speed and any objections.
This guide answers the question: Do You Need to Pay to Strike Off a Company in SSM? It also explains what those fees cover when closing company operations, what documents SSM expects, and how to avoid extra costs from delays or objections.
Key Takeaways
- SSM charges RM100 for a standard strike-off application; objections raise fees to RM300 and withdrawals to RM500.
- Applicants must be non-operational with zero assets and liabilities before applying.
- The formal process has a 30-day public notice and ends when the Federal Gazette publishes the dissolution.
- Expect timelines from about 6 to 15 months, depending on reviews and objections.
- Understand differences between striking off and winding up to choose the most cost-effective route.
Understanding Strike Off in Malaysia under the Companies Act 2016
The act 2016 sets out a clear pathway for removing a company name when there are no assets, liabilities, or ongoing proceedings. Striking a company is typically voluntary and launched by directors or shareholders.
This route is far simpler than winding up because no asset realization or liquidator is needed. SSM may also start action against dormant or non-compliant companies that meet the criteria for removal.
“Publication in the Federal Gazette is the final legal step; once listed, dissolution takes effect and the entity ceases to exist.”
Key practical point: the process finishes with a Gazette notice. After publication, the company cannot trade and its name is off the register.
| Step | What Happens | Why it Matters |
|---|---|---|
| Eligibility check | No assets, no debts, no legal suits | Keeps process simple and low-cost |
| Application or SSM initiation | Stakeholders apply or SSM files for dormant firms | Starts formal review under companies act |
| Gazette publication | Company name removed; legal dissolution | Final and binding end to company existence |
Do You Need to Pay to Strike Off a Company in SSM?
A formal removal from the register comes with clear SSM charges and an objection window.
The mandatory statutory fee for an application strike is RM100 for the Appendix submission. If a third party files an objection, that filer pays RM300. If the applicant withdraws, RM500 applies.
After submission, SSM issues a public notice and opens a 30-day window where creditors or stakeholders, including shareholders, may object by lodging the RM300 fee.
These sums cover only SSM’s charges. Professional or administrative costs for a secretary or advisor often add to the bill. Outstanding tax matters usually require clearance and can delay processing.
What to budget and expect
- Statutory charge: RM100 minimum for the strike application.
- Objection fee: RM300 for third-party filings; withdrawal fee: RM500.
- Typical completion time ranges from about 6–15 months, depending on reviews and any objections.
In short: the statutory fee is modest, but accurate paperwork and settled tax affairs keep the process smooth and faster.
All Strike-Off Fees You Should Know Today
Here is a concise summary of statutory and likely extra costs tied to a strike application.
Core statutory fees cover submission, objections, and withdrawals.
- SSM application fee (Appendix submission): RM100 paid with the Appendix and supporting documents.
- Objection filing fee by third parties: RM300; an objector pays this during the 30-day notice period.
- Withdrawal fee if the applicant cancels within the notice window: RM500.
Practical notes: attach the required documents when filing the RM100 application to avoid delays or resubmission. An objection can pause the process and may raise overall expense.
| Fee Type | Amount (RM) | Who Pays | Impact |
|---|---|---|---|
| Application (Appendix + documents) | 100 | Applicant | Starts formal strike process |
| Objection filing | 300 | Objector | Can delay or halt the strike |
| Withdrawal within notice | 500 | Applicant | Cancels current request |
| Professional & administrative | Variable | Applicant | Costs for secretarial, tax, or legal help |
Beyond SSM charges, budget for secretarial fees, tax clearance, and minor account reconciliations. Clean, dormant records with no assets or liabilities usually lower final costs for the company.
Can Your Company Be Struck Off? Key Requirements in the Companies Act 2016
A company aiming for removal must demonstrate twelve months of inactivity with no plan to resume operations. The statutory requirements are strict and follow Sections 549–550 of the companies act, also known as act 2016.
Inactivity and intention
The business should be dormant for at least 12 months or never have commenced trading. The entity must clearly show no intention of restarting operations.
Assets and liabilities
The firm must hold zero assets and zero liabilities. No secured creditors or charges may remain on the register.
Compliance status
The entity must not be a holding company, a subsidiary, or a guarantor. It must have no ongoing legal proceedings in or outside Malaysia.
“Close bank accounts, update statutory lodgments and document any attempts to contact missing shareholders or directors.”
- No return of capital to shareholders and no unpaid government debts (LHDN, EPF, SOCSO).
- All statutory filings should be current and bank accounts closed.
- Provide proof showing how the company meet these checks before submitting an application.
Practical tip: gather closure evidence early. Clear records speed review and reduce the chance of objections that delay finalisation.
How to Strike Off a Company with SSM: A Step-by-Step Process
Start by halting business activities and clearing any outstanding obligations before lodging the formal request.
Cease operations and settle all liabilities, including tax obligations with LHDN and statutory contributions to EPF and SOCSO. Close bank accounts and reconcile final records.
Pass a directors’ resolution and obtain unanimous shareholders’ approval. This resolution authorizes the application and shows corporate consent.
- Prepare Appendix 1 and compile supporting documents from Appendix 2, including recent management accounts and, where applicable, tax clearance.
- Submit the complete application to SSM and respond promptly to any queries during review.
- Monitor SSM notice. A 30-day public notification runs; address any creditor communications or objections quickly.
- If no valid objections arise, SSM publishes the name in the Federal Gazette and legal dissolution follows.
“Publication in the Federal Gazette marks the legal end of the entity’s existence.”
| Stage | What to submit | Who signs | Expected time |
|---|---|---|---|
| Pre-application | Final accounts, tax clearance, bank closures | Directors | Weeks |
| Application | Appendix 1 + Appendix 2 documents | Directors & shareholders | SSM review |
| Notice period | Public notification (30 days) | Public & creditors | 30 days |
| Gazette publication | SSM final notice | SSM | Several months depending on complexity |
Practical tip: prepared documents and clear records shorten review times and reduce the chance of objections that extend the process by months.
Documents and Proof You’ll Need for a Smooth Application
Gathering the right paperwork early avoids delays during the formal removal request. A clear pack shows SSM that the entity has ceased operations and holds no obligations.
Core filings
Application letter stating reasons, a statutory declaration signed by a director, and the board or shareholder resolution are essential. Include the completed Appendix and signatures from relevant directors and shareholders.
Financials and tax
Attach the latest management accounts (balance sheet and P&L) to confirm zero company assets and liabilities. Where required, include official tax clearance from LHDN to show all assessments and filings are settled.
Operational closures
Provide proof of bank account closures and confirmations of no outstanding dues with government agencies, especially EPF and SOCSO. If any stakeholders are uncontactable, add dated letters or emails showing reasonable attempts to trace them.
| Document | What it proves | Who signs |
|---|---|---|
| Application letter | Reason for request | Director |
| Statutory declaration | No assets or liabilities | Director |
| Management accounts | Financial position | Directors |
Tip: double-check all statutory lodgements with SSM before submission to avoid queries that slow the process.
Timelines, Notices, and What Happens After Gazette Publication
Once SSM posts its formal notice, a 30-day review window starts for any third-party objections.
Review and objection window
The public notice runs for thirty days. During this period, creditors and interested parties may lodge formal objections.
If a valid objection is filed, the process pauses and additional checks follow. If no objection appears, SSM moves the file toward publication.
After the Gazette: what follows
Publication of the company name in the Federal Gazette is the legal marker of dissolution.
From that date, the entity ceases to exist and cannot enter contracts or hold assets. Directors should keep registers and accounting records for seven years after the Gazette entry.
Expected duration and best practice
Typical end-to-end timelines vary by case complexity and SSM workload. Many files close within six to twelve months, while others may run up to fifteen months.
- Respond quickly to queries during the notice to avoid extra months of delay.
- Keep documents complete so the final publication proceeds smoothly.
“Publication in the Federal Gazette is the final step; once listed, legal dissolution takes effect.”
| Stage | What Happens | Typical months |
|---|---|---|
| Notice period | 30-day objection window | 1 |
| SSM review & publication | Gazette entry and legal end | 5–14 |
| Post-dissolution | Record retention | 84 months (7 years) |
When Things Don’t Go as Planned: Objections, Withdrawals, and Reinstatement
Unexpected holds such as creditor objections or missing documents can stall a strike application quickly.
Strike-off objections: who can object and why
Any interested party may file an objection during the 30-day public notice by paying RM300. Typical grounds include ongoing business activities, active legal proceedings, receivership or liquidation, and unresolved claims.
When an objection arrives, the process pauses until that objection is resolved, withdrawn, or dismissed.
Withdrawing an application
An applicant may cancel within the specified 30-day window by lodging a Notice of Withdrawal and paying RM500. Withdrawal halts publication and lets the company address outstanding issues.
Reinstating a struck company
A company struck in error can seek relief through the court. A petition may restore the entity within seven years of dissolution if the court finds the strike was improper.
Choosing between strike, liquidation, or dormancy
If assets or liabilities remain, consider formal liquidation with a liquidator under the companies act. If future trading is likely, keeping the company dormant may be the safer, lower‑cost path.
Costs Beyond SSM Fees: What Companies Must Budget For
Smaller firms with clean records usually spend far less on closure than businesses with long transaction histories. Practical costs often include professional time for compiling the Appendix, preparing management accounts, and securing tax clearance.
Typical cost scenarios
Dormant company — low advisory time, minimal reconciliation, and fewer queries from SSM. This makes final costs modest and predictable.
Active-with-history company — more work reconciling assets, liabilities and small outstanding debts. Extra hours for bank closures and verifying nil balance accounts raise fees.
Ways to reduce costs
Early compliance helps. Close bank accounts, resolve penalties, and obtain any tax clearances before filing.
- Prepare clean management accounts to show zero assets liabilities.
- Respond to SSM queries promptly to avoid added billable hours.
- Use an experienced secretary to compile documents efficiently.
“Clean documentation speeds the process and reduces professional fees.”
Compliance Checkpoints to Avoid Delays or Extra Fees
A careful pre-filing review cuts the chance of SSM queries and saves months of delay.
Ensure lodgements and penalties are current
Confirm the company must lodge any overdue returns and pay compounds before submission. Clear statutory requirements reduce SSM queries after the public notice.
Verify legal standing and secured charges
Check there are no ongoing legal proceedings and no secured charges on record. Any active suit or registered charge will block a smooth strike.
Practical steps for directors and stakeholders
Directors shareholders should approve the plan and record resolutions. Close bank accounts, settle government debts, and keep dated proof of attempts to contact missing stakeholders.
- Collect tax clearances and final management accounts.
- Keep correspondence that shows efforts to reach absent shareholders or directors.
- Address these checkpoints early to avoid extra months of delay and unexpected fees.
“Early compliance and clear records make the strike process faster and far less costly.”
Conclusion
For dormant firms with clean records, the strike route offers a streamlined path toward legal dissolution and lower overall expense.
This conclusion packs the essentials: a completed application, a 30-day public notice, and eventual Federal Gazette entry mark the end of legal life under the act 2016. Statutory charges are modest (RM100; RM300 for objections; RM500 for withdrawal), yet proper documentation and a strong.
Directors and shareholders must confirm nil assets and liabilities, obtain tax clearance, and hold a formal resolution. If conditions do not match, consider liquidation with a liquidator or keeping the entity dormant.
Processing may take several months. Records must be kept for seven years and a struck company can seek court restoration where justified.
FAQ
How much does it cost to close a company using SSM?
Closing via strike-off involves statutory SSM fees such as the application (RM100), possible objection filing (RM300), and withdrawal fee (RM500). Expect additional professional fees for accountants, tax clearance, or a company secretary when records or liabilities need cleanup.
What are the main eligibility rules under the Companies Act 2016 for a company to be struck off?
A company can be struck off if it has been inactive for at least 12 months with no intention to resume business, holds no assets or liabilities, has no ongoing legal proceedings, and is not acting as a holding or guarantor company. All statutory lodgments and government dues must be clear.
Is tax clearance from LHDN required before applying for strike-off?
Yes. Tax clearance or confirmation of no outstanding tax assessments from Lembaga Hasil Dalam Negeri (LHDN) is typically required. Settling income tax, GST matters (if applicable), and employer obligations helps avoid objections that delay the process.
What documents must be submitted with the SSM strike-off application?
Prepare an application letter, a directors’ and shareholders’ resolution authorizing the application, a statutory declaration confirming no assets or liabilities, latest management accounts, evidence of bank account closure or nil balance, and proof that attempts were made to contact missing parties.
How long does the strike-off process take from application to dissolution?
After a successful application, SSM issues a notice and there is typically a 30-day public objection period. If no valid objections arise, the company’s dissolution follows publication in the Federal Gazette. The full timeline often spans several weeks to a few months depending on complications.
Who can file an objection to a strike-off and on what grounds?
Creditors, shareholders, government agencies, or any interested party can object. Valid grounds include outstanding debts, ongoing litigation, unresolved tax liabilities, or if the company holds assets. A valid objection pauses or halts the strike-off.
Can an application for strike-off be withdrawn once submitted?
Yes. An applicant can withdraw, but SSM charges a withdrawal fee (RM500). Withdrawal is advisable if new information surfaces or objections need addressing. After withdrawal, the company remains active and must continue meeting statutory obligations.
What happens if a company is struck off but later needs to be reinstated?
Reinstatement requires a court order. Interested parties have up to seven years to petition the court to restore the company. The petitioner must show cause, settle outstanding obligations, and deal with creditors’ claims and compliance gaps.
When should a company choose strike-off over formal liquidation or remaining dormant?
Strike-off suits companies that are cleanly inactive with no debts, assets, or contingent liabilities. Formal liquidation fits where creditors must be paid or assets distributed. Dormant status may suit entities expecting future activity while minimizing immediate costs.
What common extra costs arise beyond SSM charges?
Expect fees for an auditor or accountant to prepare final accounts, tax consultants for LHDN matters, company secretary services, bank closure costs, and possible settlement of employee statutory contributions like EPF and SOCSO. Legal fees may apply if disputes occur.
How can a company reduce strike-off costs and avoid delays?
Keep statutory filings current, settle taxes and statutory contributions early, close bank accounts properly, maintain clear financial records, and obtain written confirmations from creditors and government bodies. Early preparation limits objections and professional work.
Does SSM publish the company name during the strike-off process?
Yes. SSM publishes a notice and the company’s name appears in the Federal Gazette during the public objection window. Publication gives creditors and other parties a chance to respond before dissolution.
What happens to a company’s records after it is dissolved?
Even after dissolution, directors should retain company records for the required retention period under Malaysian law. Reinstatement or regulatory queries may require historical documents, audited accounts, and correspondence related to the strike-off.
Are secured creditors a barrier to striking off a company?
Yes. A company with secured creditors, outstanding charges, or guarantees cannot be struck off until those interests are removed or settled. Lenders must consent or securities must be discharged before SSM will approve a strike-off.
Does striking off remove personal liability for directors or shareholders?
Striking off does not automatically absolve directors or shareholders from personal liability for wrongful acts, outstanding taxes, or statutory breaches. Liability for past misconduct can survive dissolution and be pursued by creditors or authorities.
