Frequently Asked Question
How to close a dormant company?
Under the Malaysian Company Law, 2016, a dormant company is a company that has not carried out any business or operations for a continuous period of two years. If you would like to dissolve a dormant company, you will need to submit an application to the Companies Commission of Malaysia (CCM). The application must be made in writing and must include the following information:
- The name and registered address of the company
- The reason for dissolution
- Pending management account
- Proof that the company has been inactive for at least two years
- A statement from each director confirming that they agree to the dissolution of the company
- The signatures of all directors or authorized signatories
- Settle all outstanding balance
- Close bank accounts if needed
What are the procedures to close an active company in Malaysia?
There are a few steps that need to be taken in order to close a company in Malaysia, according to the 2016 Company Law. First, all debts and liabilities of the company must be repaid or provided for. Second, a notice of the intention to wind up the company must be published in both the Gazette and at least one newspaper circulating in Malaysia.
Third, all contracts entered into by the company must be terminated or information about the winding up must be communicated to those affected. Fourth, all property of the company must be disposed of and any loans outstanding must be repaid. Finally, a declaration of solvency must be made by the directors of the company. Once these steps have been taken, a petition for voluntary winding up can be submitted to the court.
What are the documents needed to close a company?
There are a few documents that are needed to close a company in Malaysia. The first is the Notice of Cancellation of Company, which needs to be filed with the Companies Commission of Malaysia (CCM). The notice must include the following information:
- Company name and registration number
- Date of cancellation
- Reason for cancellation
- Full name and address of all directors and shareholders at the time of cancellation
The second document required is the Form DIP 24, which is a declaration by the directors stating that they have complied with all their obligations as directors, including settling all debts and liabilities of the company. Finally, if there are any assets or property remaining after the company has been dissolved, a Declaration of Dissolution.
How long does it take to close a company?
The answer to this question depends on a number of factors, all of which are governed by Malaysian company law. First, the type of company being closed must be taken into account. A sole proprietorship can be wound up relatively quickly, whereas a public company requires a more extensive process. In addition, the reason for closing the company must be considered. If the company is insolvent and unable to pay its debts, then it will likely take longer to close than if it is simply ceasing operations due to poor performance. Finally, the procedures followed by the directors in closing the company will also affect how long it takes to shut completely.