A corporation or other business entity may cease operations for a number of reasons. It could be attributed to financial problem, management deadlock, shareholders dispute, group restructuring (to minimise tax liabilities), or it could be the case of company was in dormant since day one.
Of course, you can informally dissolve your company by terminating all business action and leaving the company's "shell" intact, but this leaves you and other owners vulnerable to lawsuits and liability. For instances, the yearly fees to a Company Secretary, Auditor and Tax Agent, and the default penalty in late submission of the Annual Return, Audited Accounts Report to Companies Commission of Malaysia, and Tax return to Income Revenue Board. While all these compliance costs are suffocating you, the breach of directors’ fiduciary duties in falling to comply the Companies Acts may implicate an offence with default penalties.
Maintain a company involves a huge cummultive costs. If you have no good reason to keep it on going, we suggest you to WIND-UP your such company and free yourself from the compliance liability.
Termination of a business operation, requires several steps in accordance to the regulations, and the assistance of a legal or tax professional is often necessary.
We provide advisory and assitance for your business cessation or company winding-up.