3 Dangerous Compliance Myths That Could Cost You Fines in Malaysia

Published On
May 5, 2025
In
Compliance

3 Dangerous Compliance Myths That Could Cost You Fines in Malaysia

Running a business is already stressful. But what if the things you thought were true… are actually setting you up for SSM penalties, tax issues, or worse?

At Trust Maven®, we’ve worked with hundreds of Malaysian SMEs, and we keep hearing the same false beliefs — sometimes too late.

Let’s bust some myths and save you from the “Oh no” moment.

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⚠️ MYTH #1: “I Don’t Need a Company Secretary Right Away”

TRUTH:
You must appoint a licensed company secretary within 30 days of incorporating your Sdn Bhd.

And no, your admin assistant, lawyer friend, or cousin who “knows about companies” doesn’t qualify.

The company secretary is legally responsible for:

  • Filing your annual return
  • Preparing board resolutions
  • Updating statutory registers
  • Keeping you compliant with SSM

Why it matters:
Missing this can lead to fines or even having your company struck off.

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⚠️ MYTH #2: “I’ll Only Get in Trouble If I Don’t File Taxes”

TRUTH:
Tax compliance is just one part of the puzzle.

Even if you’re a zero-revenue company, you still need to:

  • Submit CP204 (tax estimate)
  • File Form E (employee declarations)
  • Send in audited accounts + Form C
  • File Annual Return

Why it matters:
SSM, LHDN, KWSP, PERKESO and town council are all watching different pieces of your puzzle. Missing any one could trigger letters, penalties, or even an audit.

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⚠️ MYTH #3: “Compliance Is Just Filing Paperwork — I’ll Worry About It Later”

TRUTH:
This mindset is the biggest trap.

Compliance isn’t just for show. It:

  • Protects your responsibilities as a director
  • Keeps your business investor-ready
  • Helps you qualify for loans, grants, and tenders

Why it matters:
We've seen SMEs lose grants or delay investor deals just because their paperwork was messy or outdated.

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✅ What You Should Do Instead

  • Appoint a licensed company secretary early
  • Don’t treat CP204/Form E/Form C as optional
  • Have a system that tracks deadlines and tasks
  • Work with professionals who guide you, not just file forms

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🔧 How We Help

At Trust Maven®, we’re not just “form-filing secretaries.”

We built internal systems, reminders, SOPs, and quality checks to protect you before things go wrong. And with our Compliance360 program, you get full visibility and structured support for your first two years.

Because we’ve seen too many good businesses make expensive mistakes — and we’re here to make sure you’re not one of them.

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💬 Not sure if your company is compliant?
DM us on WhatsApp. We’ll give you a quick health check — no commitments.

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