SSM Extends Compound Reduction Period to 31 December 2026
The Companies Commission of Malaysia (SSM) has extended its compound reduction period under the Companies Act 1965 and Companies Act 2016 until 31 December 2026. This provides eligible companies with an opportunity to address outstanding compliance issues and apply for applicable compound reductions.
If you have a dormant company that is no longer required, this may be a good time to review its compliance status and consider applying to strike it off the register.
What should you check before applying to strike off a dormant company?
- Assets and liabilities: Check that the company has no outstanding assets or liabilities that would prevent it from qualifying for striking off.
- Outstanding charges and legal proceedings: Confirm that there are no outstanding registered charges, pending legal proceedings or other matters that would prevent the application from proceeding.
- Tax compliance: Review the company's tax position and resolve any outstanding tax obligations or matters with the Inland Revenue Board of Malaysia (LHDN).
- Statutory compliance: Review outstanding annual returns, financial statements and other required statutory lodgements.
- Outstanding compounds and fees: Identify any unpaid compounds and filing fees, and check whether the company qualifies for the current SSM compound reduction initiative.
Important reminders
Dormant does not mean automatically eligible for striking off. The company must satisfy the applicable requirements under Section 550 of the Companies Act 2016 and SSM's striking-off guidelines.
Compound reductions are conditional. The extension to 31 December 2026 does not automatically entitle every dormant company to a reduction. Eligibility depends on the applicable initiative, the offence involved and compliance with the relevant conditions.
Do not ignore outstanding statutory filings. Failure to lodge required documents may result in compounds and other enforcement consequences. The applicable amounts depend on the offence and the circumstances.
Take action before the deadline
If your company is no longer operating, review its statutory and tax position promptly. Early action may help you address outstanding compliance matters and determine whether a striking-off application and compound reduction are available.
For further information, refer to the official SSM website and its current guidelines on striking-off applications and compound reduction initiatives.
For further details, click on the link below:
https://www.ssm.com.my/
This bulletin is intended for general information only. Eligibility for striking off and compound reduction must be assessed on a case-by-case basis.