Commercial Trading Dormant Companies in Malaysia

Under the Companies Act 2016, a company is considered dormant if it fails to carry out any business activity or operation during the financial year, and there are no outstanding liabilities due and payable by the company during that year.

A dormant company is not required to prepare and submit financial statements to the Companies Commission of Malaysia (SSM), but it is still required to file an annual return with SSM.

A company may be dormant for a variety of reasons, including:

- The company was set up for a specific project that has since been completed
- The company is waiting for licenses or approvals from the relevant authorities
- The company is in the process of being wound up or liquidated

If a company is dormant, its directors may apply to the court for an order exempting the company from the requirement to hold an annual general meeting (AGM).

However, a dormant company must still comply with all other statutory requirements, such as filing its annual return and keeping proper accounting records.