Step-by-Step Guide: How to Close down or Wind Up a Sdn Bhd Company in Malaysia

Winding up a company involves the complex process of dissolving the business, which includes terminating operations and liquidating assets to pay off creditors. The winding up process can be categorized into Compulsory Winding Up and Voluntary Winding Up.

Compulsory Winding Up

Compulsory winding up, also known as winding up by court order, is typically initiated when a company is unable to meet its debt obligations. This process is often lengthy and costly, potentially taking several months to complete.

Voluntary Winding Up

Voluntary winding up is initiated by the company’s members or creditors. This can be further divided into:

  • Member’s Voluntary Winding Up: The directors declare the company’s solvency, confirming that it can fully settle its debts within 12 months.
  • Creditor’s Voluntary Winding Up: Initiated when the company cannot meet its liabilities, requiring a meeting with creditors to propose a winding up solution.

Generally, winding up a Sdn. Bhd. company involves a court application and appointing a liquidator to manage the process. The cost typically ranges from RM10,000 to RM20,000 and may take between 9 months to 1.5 years.

6 Steps to Wind Up a Sdn Bhd Company

1.Board Resolution

Hold a board meeting and pass a resolution to close down the company, specifying the reason for closure and appointing a liquidator if necessary.

2.Informing Creditors and Stakeholders

Notify creditors and other stakeholders, including customers, suppliers, employees, and relevant government agencies, about the closure.

3.Publication of Notice

Publish a notice of the company’s closure in a local newspaper and the Government Gazette to inform the public.

4.Appointment of Liquidator

If the company is insolvent, appoint a liquidator to manage the closure process. The liquidator will handle the sale of assets and distribution of proceeds to creditors.

5.Settling Debts and Liabilities

Ensure all outstanding debts and liabilities are settled before the company can be officially closed.

6.Filing of Documents

Submit the necessary documents to the Companies Commission of Malaysia (SSM) to formally notify them of the company’s closure.

By following these steps, you can effectively wind up a Sdn. Bhd. company, ensuring compliance with legal requirements and proper notification to all relevant parties.