Construction Dormant Companies in Malaysia

A construction dormant company is a company that has been registered with the Companies Commission of Malaysia (CCM) but has not carried out any business activity for a period of two years or more.

The company may have been registered for the purpose of carrying out construction work but has not commenced any work within the specified period. Alternatively, the company may have been registered and has commenced construction work but has since ceased all business activity.

The registration of a construction dormant company is an offence under the Companies Act 1965 and the company may be liable to a fine of RM50,000 or to imprisonment for a term not exceeding two years or to both.

A construction dormant company is not allowed to carry out any business activity until it has been revived by the CCM. The company must submit a revival application to the CCM and must comply with the requirements specified in the application.

Once the company has been revived, it must then carry out the construction work for which it was registered within the specified period. If the company fails to do so, it will be liable to a fine of RM100,000 or to imprisonment for a term not exceeding five years or to both.