?Company Closure in Malaysia: Strike-Off vs Voluntary Winding-Up — What’s the Difference?
If you’re considering closing your Sdn. Bhd., it’s important to understand the two legal exit options under the Companies Act 2016 — Strike-Off and Voluntary Winding-Up.
Here’s a quick comparison table to help you decide:
? Quick Comparison Table
| Item | STRIKE-OFF | VOLUNTARY WINDING UP |
| Legal Provision | s.550 CA 2016 | s.439(1)(b) CA 2016 |
| Resolution Needed | ? Board resolution only (? shareholder consent advisable) | ? Special resolution (≥75%) required |
| Eligibility | No assets/liabilities- Ceased operations- Filings up to date | Solvent- Must file Declaration of Solvency (Form 66) |
| SSM Process | Form 550 → Gazette → Objection wait | Appointment of liquidator → Notices → Final return |
| Public Notice | SSM Gazette – 60 days objection period | Gazette + 1 local newspaper |
| LHDN Closure | ? RM2,500 (CP7A + tax clearance) | ? RM2,500 |
| KWSP/SOCSO/HRDC CLOSURE | ? RM500 | ? RM500 |
| Bank Closure | ? RM100/bank | ? RM100/bank |
| ? Estimated Total Cost | ? RM5,600+ | ? RM13,100+ |
| ? Timeframe | 6–12 months | 12–24 months |
| Final Result | SSM strike-off notice in Gazette | Liquidator’s final return to dissolve company |
| Risk of Non-Compliance | ? s.550(6): False declaration = Offence | ? s.439(2): False solvency = Offence |
? What is Strike-Off?
Strike-Off is a simple exit option available under Section 550 of the Companies Act 2016, meant for dormant, inactive companies that meet these criteria:
? Conditions:
- No assets or liabilities
- Ceased business operations
- All statutory filings (AR, Financial Statements) are up to date
? Process:
- Board resolution (shareholder consent optional but advisable)
- File Form 550 with SSM
- Wait 60 days for public objection via Gazette notice
- If no objection, SSM will strike off the company
? Typical Cost: ~RM5,600+
(SSM filing + tax clearance + statutory body closures + bank closure)
? Timeframe: 6 to 12 months
? What is Voluntary Winding-Up?
Voluntary Winding-Up under Section 439(1)(b) of CA 2016 is a formal process for solvent companies that want to close down properly through appointment of a licensed liquidator.
? Conditions:
- Company is solvent
- Directors must make a Declaration of Solvency (Form 66)
- Shareholders must pass a special resolution (≥75%)
? Process:
- Appoint liquidator
- Publish winding-up notice in Gazette + newspaper
- Liquidator settles creditors, distributes remaining assets
- Final return filed to dissolve the company
? Typical Cost: ~RM13,100+
(Liquidator fee, Gazette & ads, tax closure, statutory filings, bank closure)
? Timeframe: 12 to 24 months
?? Compliance Reminder:
Closing a company without properly handling SSM, LHDN, EPF, SOCSO, HRDC, and bank accounts can result in penalties or future complications for directors and shareholders.
? How Boss Boleh Can Help
We provide full support for:
? Company eligibility assessment
? Resolutions and statutory filings
? Liaison with SSM, LHDN, EPF, SOCSO, HRDC
? Complete end-to-end compliance closure
? Planning to close your company?
First, consult a Company Secretary to assess your company’s eligibility to proceed with Strike-Off or Winding-Up.
Boss Boleh can assist you from start to finish — the compliant and cost-effective way.
Want to learn more about managing your business structure the right way? ?
Join our FREE webinar! We’ll walk you through compliance essentials and how to convert from Enterprise to Sdn Bhd with confidence.
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