Frequently Asked Questions

According to the Companies Act 2016, every Sdn Bhd company in Malaysia must appoint at least one qualified Company Secretary (registered with SSM or a professional body).

Key duties include ensuring compliance with the Companies Act, managing board meetings, preparing resolutions, maintaining statutory books, and managing annual filings with SSM.

Yes, you can change your Company Secretary at any time via a directors' resolution. We can facilitate the smooth migration of records from your current secretary.

A director must be at least 18 years old, reside in Malaysia (for at least one director), and not be bankrupt or convicted of corporate crimes.

It typically takes 3 to 5 working days once all required documents are signed and submitted to SSM.

A resolution is a written document recording decisions made by the company's directors or shareholders for specific business matters.

Every company must have a registered office address in Malaysia (usually the Company Secretary's office) for storing statutory records.

A Sdn Bhd is a separate legal entity (limited liability), while a Sole Proprietorship is the same entity as its owner (unlimited liability).

Companies must submit an Annual Return and audited Financial Statements to SSM every year.

Yes, legally there is no restriction on a Company Secretary holding shares in the same company.

It is a document defining the internal rules of the company. Companies can choose to adopt one or rely entirely on the Companies Act 2016.

Yes, the Companies Act 2016 allows a Sdn Bhd to have a single director and single shareholder (who can be the same person).

It allows you to monitor cash flow, track business performance in real-time, and simplifies the audit and tax preparation process at year-end.

We use cloud-based accounting systems like Xero or QuickBooks to provide easy data access anywhere.

Yes, according to tax laws, original documents must be kept for 7 years. However, we encourage digitizing receipts for safety.

Cash basis records transactions based on actual money flow, while accrual basis records transactions when they occur (even if payment is pending).

Yes, we provide complete payroll services including EPF, SOCSO, EIS, and PCB (Monthly Tax Deduction) calculations.

These should be recorded as "Advances from Director" and supported by valid receipts to allow reimbursement from the company.

Typically includes a Profit and Loss Statement, Balance Sheet, Cash Flow Statement, and accounts receivable/payable aging reports.

It is a categorized list of all accounts used by a business to record financial transactions, serving as the foundation for the general ledger.

Our cloud systems automatically pull exchange rates, but we also manually verify realized and unrealized gains/losses for accuracy.

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Yes, according to the Companies Act 2016, though SSM has introduced audit exemption criteria for certain companies based on size and revenue.

Includes dormant companies, small companies (revenue below RM300k), or companies with assets below RM300k (subject to additional conditions).

Typically takes 1 to 3 months depending on the volume of transactions and availability of supporting documents.

It is a statement by the auditor on whether the financial statements give a true and fair view of the company's financial position.

To ensure assessments are objective, unbiased, and reliable for shareholders and third parties.

An evaluation of a company's internal processes and safeguards to prevent errors, fraud, and inefficient practices.

Ensure all bank statements, invoices, receipts, and agreements are organized and all accounts are reconciled before the auditors arrive.

A document issued by the auditor to management highlighting weaknesses in internal controls and offering recommendations for improvement.

For SMEs, the rate is 15% for the first RM150k, 17% for the balance up to RM600k, and 24% for the remainder (subject to annual budget changes).

Form C must be submitted within 7 months after the company's financial year-end date.

It is an estimate of tax to be paid in monthly installments to LHDN based on projected profits for the year.

Yes, amendments can be made in the 6th or 9th month of the company's basis period using Form CP204A.

Examples include legal fines/penalties, donations to unregistered bodies, and certain entertainment expenses not for business purposes.

A way to claim tax relief on the wear and tear of qualifying capital assets (like machinery or vehicles) used in your business.

Tax withheld from payments made to non-residents for services, royalties, or interest, and paid to the Malaysian government.

Section 82 of the Income Tax Act 1967 requires taxpayers to keep records for 7 years for auditing purposes.

It is a digital representation of transactions between a seller and buyer, verified in real-time by LHDN via the MyInvois portal.

Yes, all businesses in Malaysia (including SMEs) are subject to the e-Invoicing mandate according to LHDN's implementation phases from 2024 to 2025.

MyInvois portal is suitable for low-volume transactions, while API integration is for companies wanting to automate their existing accounting systems.

It requires collecting more complete buyer data (like TIN and ID No.) and immediate validation before an invoice is considered valid for tax purposes.

A unique number issued by LHDN to track taxpayers; it is a mandatory field for the new e-Invoicing system.

You will receive an immediate notification, and you must correct the errors and resubmit. Validations happen in near real-time.

A company can be registered with a paid-up capital as low as RM1. However, some business licenses may require higher capital.

Yes for business correspondence, but the registered office address is typically the Company Secretary's office where statutory records are managed.

Yes, every company that has not been struck off must submit an Annual Return to SSM even if not conducting business.

Any individual aged 18 or above who is not bankrupt and not disqualified under the Companies Act can be a director.

The official SSM fee is RM1,010 (including SST), excluding secretarial professional fees and document preparation costs.

Ordinary requires >50% majority (e.g., dividends), while Special requires >75% majority (e.g., name change).

In many sectors, yes. However, some specific industries require local equity participation or specific licenses.