Understanding the 6 Annual Compliance Fees for Secretarial Services in Malaysia
Embarking on a new business journey involves meticulous planning, especially when it comes to adhering to regulatory requirements. Company secretarial charges, although obligatory under the Companies Act 2016 in Malaysia, are often underestimated by business owners. Let’s delve into the breakdown of annual compliance fees to gain a comprehensive understanding of their significance.
1. Secretarial Fee: Ensuring Compliance and Expertise
The secretarial fee encompasses various aspects:
- Payment for the appointment of a company secretary to ensure compliance with the laws and regulations of the Companies Commission of Malaysia (SSM).
- Inclusive usage of a registered office address, a compulsory requirement for all Sdn. Bhd. companies.
- Maintenance and updating of register books, such as the register of members, directors, managers, and secretaries, ensuring accuracy and compliance.
2. Annual Return: A Comprehensive Company Overview
The Annual Return (AR) provides crucial insights into a company’s particulars, including its registered office address, nature of business, shareholder details, and financial summaries. Non-compliance with AR filing requirements may result in significant penalties.
3. Filing of Beneficial Ownership (BO) Declaration Form: Compliance with Companies Act 2016
Under the Companies Act 2016, filing the BO declaration form is mandatory. This form identifies the ultimate owner of shares and must be lodged with the AR within specified timelines to maintain regulatory compliance.
4. Filing of Audited Financial Statements:
Transparency and Accountability
Companies must share audited financial statements with shareholders within specific timeframes. These statements, independently certified by government-approved auditors, provide crucial insights into a company’s financial health and must be lodged with the SSM promptly.
5. Audit Confirmation Letter: Ensuring Audit
Integrity
Confirmation letters serve as persuasive evidence during audits, ensuring the accuracy and integrity of financial information provided by a third party, such as a company secretary.
6. Statutory Records File Inspection Services: Upholding Accuracy and Fairness
During audits, auditors must ensure the accuracy and fairness of statutory records, such as register books and business information. Statutory records file inspection services play a crucial role in providing evidence to establish audit opinions.
Conclusion: Prioritizing Compliance for Long-Term Success
Understanding the components of annual compliance fees is essential for navigating regulatory requirements effectively. While the costs may seem significant, prioritizing compliance ensures long-term success and stability for businesses operating in Malaysia’s dynamic business environment.