Malaysia
Financial Reporting Obligations for Companies in Malaysia
1. Registry for Financial Statement Submission
In Malaysia, companies must submit their financial statements (annual reports) to the Suruhanjaya Syarikat Malaysia (SSM), or Companies Commission of Malaysia (https://www.ssm.com.my/). The SSM is the governing body that regulates companies and businesses in Malaysia.
2. Legal Forms Required to Submit Financial Statements
- Sendirian Berhad (Sdn. Bhd.) – Private Limited Company
- Obligation: Required to submit financial statements (annual reports) to SSM.
- Berhad (Bhd.) – Public Limited Company
- Obligation: Required to submit financial statements (annual reports) to SSM.
- Perkongsian Liabiliti Terhad (PLT) – Limited Liability Partnership
- Obligation: Required to submit financial statements (annual reports) to SSM, depending on the company size or if financial thresholds are exceeded.
- Perkongsian (Partnership) – Partnership
- Obligation: Not required to submit financial statements, unless stipulated by the partnership agreement or other business arrangements. However, a declaration of solvency is needed if winding up the business.
- Note: Submission is optional or situational.
- Syarikat Milikan Tunggal (Sole Proprietorship) – Sole Proprietorship
- Obligation: Not required to submit financial statements to SSM.
- Note: This form is exempt from annual report filing requirements.
- Koperasi (Cooperative) – Cooperative Society
- Obligation: Required to submit audited financial statements annually to the Suruhanjaya Koperasi Malaysia (Cooperative Commission of Malaysia) (https://www.skm.gov.my/).
- Syarikat Awam Tersenarai (Listed Public Company) – Listed Public Company
- Obligation: Required to submit financial statements to SSM and disclose them on Bursa Malaysia (https://www.bursamalaysia.com/) if publicly listed.
- Syarikat Asing (Foreign Company) – Foreign Company
- Obligation: Required to submit annual financial statements to SSM. Specific regulations may apply depending on the nature of operations in Malaysia.
Legal Forms Not Required to Submit Financial Statements:
- Syarikat Milikan Tunggal (Sole Proprietorship) – Exempt from financial reporting obligations to SSM.
- Perkongsian (Partnership) – Not typically required unless specified in agreements or winding up.
3. Companies Requiring Audited Financial Statements
In Malaysia, certain companies are required to have their financial statements audited based on criteria such as turnover, total assets, and the number of employees, according to the Companies Act 2016 (https://www.ssm.com.my/acts) and the Auditors Act 1967 (https://www.agc.gov.my/).
|
Legal Form (Original Name & English Translation) |
Rule |
Criteria |
|
Sendirian Berhad (Sdn. Bhd.) – Private Limited Company |
Mandatory audit |
If turnover exceeds RM300 000, total assets exceed RM1 million, or the company has more than 50 employees. |
|
Berhad (Bhd.) – Public Limited Company |
Mandatory audit |
All public limited companies must have their financial statements audited, regardless of size or turnover. |
|
Perkongsian Liabiliti Terhad (PLT) – Limited Liability Partnership |
Mandatory audit |
If turnover exceeds RM300 000 or total assets exceed RM1 million, the LLP must have audited financial statements. |
|
Perkongsian (Partnership) – Partnership |
Not required |
Partnerships are not required to have audited financial statements unless stipulated by the partnership agreement. |
|
Syarikat Milikan Tunggal (Sole Proprietorship) |
Not required |
Sole proprietorships are not obligated to have audited financial statements. |
|
Syarikat Awam Tersenarai (Listed Public Company) |
Mandatory audit |
All listed public companies are required to audit their financial statements. |
|
Syarikat Asing (Foreign Company) |
Mandatory audit |
Foreign companies operating in Malaysia must have their financial statements audited if they exceed the same thresholds applied to private limited companies. |
4. Listed Companies and Financial Statement Disclosure
For companies listed on the Malaysian stock exchange, it is mandatory to publish financial statements on the exchange’s website. The stock exchange in Malaysia is called Bursa Malaysia (https://www.bursamalaysia.com/).
5. Deadline for Financial Statement Submission
- Private Limited Company (Sendirian Berhad) – Within 7 months of the financial year-end.
- Public Limited Company (Berhad) – Within 6 months of the financial year-end.
- Limited Liability Partnership (Perkongsian Liabiliti Terhad) – Within 7 months of the financial year-end.
- Partnership (Perkongsian) – No formal deadline for submission.
- Sole Proprietorship (Tunggal) – Not required to submit.
6. Partial Financial Statement Submissions
- Small and Medium Enterprises (SMEs) – May submit simplified reports if their turnover and total assets are below thresholds.
- Dormant Companies – Only need to submit a declaration of dormancy instead of full financial statements.
7. Consequences of Not Submitting Financial Statements
- Fines – Penalties up to RM50 000.
- Striking off the register – The company may be struck off from the registry after repeated violations.
- Directors’ liability – Directors can be personally fined or held liable for non-compliance.
- Legal Action – Persistent non-compliance may lead to further legal action or injunctions by the SSM.
8. Foreign-Owned Branches and New Companies
- Foreign-Owned Branches – Must submit financial statements within 6 months of the financial year-end, and may be required to submit additional reports as per SSM regulations.
- Newly Established Companies – New companies are required to submit their first financial statement within 18 months from the date of incorporation.
Sources
| Source | Link |
| Suruhanjaya Syarikat Malaysia (SSM) – Companies Commission of Malaysia | https://www.ssm.com.my/ |
| Suruhanjaya Koperasi Malaysia – Cooperative Commission of Malaysia (SKM) | https://www.skm.gov.my/ |
| Bursa Malaysia – Malaysia Stock Exchange | https://www.bursamalaysia.com/ |
| Companies Act 2016 (Malaysia) | https://www.ssm.com.my/acts |
| Auditors Act 1967 (Malaysia) | https://www.agc.gov.my/ |
| Start Companies Search | Order Credit Report |
Keywords
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