An annual return refers to the summary of the profile of the company consisting of its general information to be filed every year to the Suruhanjaya Syarikat Malaysia (SSM). The contents of the company profile include the business office address, branch office address, registered office address, principal business activities, and charges that are registered with the SSM such as the company assets pledged. Other salient details included in the annual return are the company directors, company secretary, and shareholders.
Companies offering all types of services are required to lodge their annual report as compliance with the Malaysian law. Failure to file the company’s annual return is a serious offense and has corresponding penalty and sanction. Thus, if you want to have a hassle-free registration and maintenance of your business, you could contact the team at Accounting Services Hub. We offer comprehensive assistance and service to businesses in this important and obligatory task towards the government
An annual return is not an income tax return, and it is exclusive for corporate entities hence it has different requirements and steps in order to be registered. A qualified and credible accounting service company is an indispensable help in complying to register your business and lodging your annual return.
When to File the Annual Return
According to Section 165(4), companies are required to file their annual return and related forms within one month after its Annual General Meeting (AGM). In the Companies Act 1965, new companies in Malaysia are required to hold their first AGM within 18 months from their incorporation while subsequent AGMs need to be held at least once a year and not more than 15 months from the previous AGM. Complying with this required date of filing is important and you may need the services of a professional accounting firm to do that. It will definitely benefit your business if you hire professional services to avoid penalties and charges.
Contents of the Annual Return
Section 165 of the Companies Act states that all corporations must submit their yearly report and annual return which include the following:
- Copy of the most recent audited accounts. This comprises the profit and loss accounts as well as the balance sheet with the certification of the manager, secretary or directory of the company.
- Certified copy of the auditor’s report
Penalties and Offences
Under the 1975 Company Act, all private limited (sdn bhd) and public limited (bhd) companies must comply with the rules and non-compliance has its corresponding penalties. Under Section 143 (1), an Annual General Meeting is required for every company each calendar year, and failure to comply may cause a penalty of RM5,000. Under Section 165 (1) and (4), every company shall lodge an annual return within one month after the AGM and failure to comply may incur a penalty of RM2,000.
Engaging Professional Services
The seriousness of not complying with the Malaysian rules regarding annual return is clear and penalties will be imposed. You need to find the right assistance from a credible and expert accounting services company to make sure your business is free from any legal impediments.
You may contact us at Accounting Services Hub to know more about annual return and other concerns.
