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🧾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

ItemSTRIKE-OFFVOLUNTARY WINDING UP
Legal Provisions.550 CA 2016s.439(1)(b) CA 2016
Resolution Needed✅ Board resolution only (✳ shareholder consent advisable)✅ Special resolution (≥75%) required 
EligibilityNo assets/liabilities- Ceased operations- Filings up to date Solvent- Must file Declaration of Solvency (Form 66) 
SSM ProcessForm 550 → Gazette → Objection wait Appointment of liquidator → Notices → Final return 
Public NoticeSSM 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+ 
⏳ Timeframe6–12 months 12–24 months 
Final ResultSSM 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.

For more details, feel free to WhatsApp us!

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