Upon initiating a business as an entrepreneur, there are many (possibly unlimited) skills to hone: many aspects of the business such as strategy, financial planning, sales and marketing and operations, networking, as well as employee management. As a private limited company owner (Sdn Bhd) in Malaysia, there are several mandatory statutory compliance as requested by the Company Commissions of Malaysia, or better known locally as Suruhanjaya Syarikat Malaysia (SSM). To help first time and incoming business owners set some expectations, we have compiled a short guide of several items of mandatory statutory compliance for Sdn Bhd.
Appointing Company Auditor
A newly incorporated company under Companies Act 2016 must appoint auditors to audit its accounts at least 30 days before the end of the period for the submission of its first financial statements. As for companies incorporated under Companies Act 1965, auditors are to be appointed by a Directors’ Resolution or by the Shareholders at a general meeting. The appointed auditors’ term ends at the conclusion of the Annual General Meeting (AGM) of the company and requires a new appointment for the period until the next AGM.
The appointed auditor or his spouse should not be an officer, partner, employer, employee or shareholder of the company. The appointed auditors have the right to access the company’s records, such as accounting books, vouchers and agreements and holds the responsibility to assure that the company’s financial affairs are recorded carefully and to report any wrongdoings of the company’s financial recordings to SSM.
Preparation of Audited Financial Statements and Lodgement of Annual Return
A newly incorporated company is allowed up to 18 months to lodge its first Annual Return, after which the Annual Return of a company for each calendar year should be lodged not later than 30 days after its incorporation anniversary. There are several details that is required to be included in the lodgement, including the following:
- Address of the company’s registered office
- The nature of business
- The address of places where its business is carried on including branch, if any
- The address at which its financial records are kept, if not kept at the registered office
- The particulars of directors, managers, secretaries and auditors
Keep Accounting Records and other Books in Order
The company should maintain a straight order of profit and loss accounts, balance sheets, as well as any registers or other record of information. As per Companies Act 2016, appropriate entries are to be made within 60 days of the completion of transactions relating to each entry. These records are to be retained for seven years upon completion.
Notify Changes to Company Particulars to SSM
The company is also compelled to lodge a notice to SSM, regarding any changes to the company particulars within 14 days from the date of event. Changes of company particulars should include any changes in any particulars of directors, managers and secretaries.
We can Lend You a Helping Hand
There could be more compliance matters towards a company aside from regulations from SSM. Keeping account on an ongoing business is strenuous. Let us help you with your company secretarial matters so that you can spend more time on expanding or providing more control over your business operations. Speak to us today!