Dormant Companies in Malaysia
Dormant companies are companies that have been registered but are not in operation. In Malaysia, a company is considered dormant if it has not carried out any business activity for a period of two years or more. Companies that are dormant are still required to file their annual returns and submit financial statements to the Companies Commission of Malaysia (SSM).
The reasons for a company to become dormant can vary, but often it is due to the death or retirement of the company’s directors, or a change in the company’s business direction. In some cases, a company may become dormant due to financial difficulties.
There are a number of advantages to keeping a company dormant. First, it allows the directors to keep the company’s registration active without having to carry out any business activity. This can be useful if the directors plan to restart the company at a later date. Second, it can help to protect the company’s name and brand from being used by other businesses. Finally, it can save the company money on annual return and financial statement filing fees.
However, there are also a number of disadvantages to being a dormant company. First, the company’s directors may be held liable for any debts or obligations incurred by the company during the period of dormancy. Second, the company’s bank account may be frozen if it is dormant for more than two years. Finally, the company may be struck off the register and dissolved if it does not file its annual return or submit its financial statements for three consecutive years.
The reasons for a company to become dormant can vary, but often it is due to the death or retirement of the company’s directors, or a change in the company’s business direction. In some cases, a company may become dormant due to financial difficulties.
There are a number of advantages to keeping a company dormant. First, it allows the directors to keep the company’s registration active without having to carry out any business activity. This can be useful if the directors plan to restart the company at a later date. Second, it can help to protect the company’s name and brand from being used by other businesses. Finally, it can save the company money on annual return and financial statement filing fees.
However, there are also a number of disadvantages to being a dormant company. First, the company’s directors may be held liable for any debts or obligations incurred by the company during the period of dormancy. Second, the company’s bank account may be frozen if it is dormant for more than two years. Finally, the company may be struck off the register and dissolved if it does not file its annual return or submit its financial statements for three consecutive years.
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