No, You Can’t Just Close Down Your Sdn Bhd by Ignoring It
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No, You Can’t Just Close Down Your Sdn Bhd by Ignoring It
This one always makes me smile — every few weeks, someone messages us and says:
“Hi Mica, my company not doing already. Can I just leave it like that ah?”
I get it. Times change. Businesses slow down. Sometimes, you just don’t want to deal with it anymore.
But here’s the thing — you can’t just leave your Sdn Bhd and hope it disappears.
It doesn’t work that way (unfortunately 😅).
⚠️ What Happens If You Just “Ignore” Your Company
If your company secretary stops filing your annual return, or you stop submitting your tax forms, your company doesn’t magically close.
It still exists in SSM’s record, just marked as non-compliant.
And every year that passes without proper filing:
- Your company gets fined
- Your directors risk being blacklisted
- Your record stays dirty in SSM’s system
One day, you might want to open another company — and surprise, you’re still linked to a non-compliant one.
That’s like trying to rent a new house while still owing rent on the old one.
💸 The Hidden Cost of “Letting It Be”
A lot of people think, “Never mind lah, I’ll just pay if SSM catches me.”
But here’s what they don’t realise:
- Each missed filing can possibly cost up to RM50,000 from SSM
- You’ll need to catch up on all old documents anyway before closure
- You might have to reopen old accounts just to show proof
By the time you fix it, it’s usually more expensive than properly closing it the right way.
✅ So, What’s the Right Way to Close a Sdn Bhd?
If your company is inactive and has no assets or liabilities, you can apply to strike it off from SSM’s register.
But it must meet certain conditions — like no outstanding debts, no active bank accounts, and all filings up to date.
The process usually involves:
- Preparing a director’s resolution to close the company
- Filing the necessary forms with SSM
- Waiting for approval (which can take a few months)
It’s not complicated — but it must be done properly.
Think of it like checking out of a hotel.
You can’t just walk out and hope they don’t charge you for the room key.
💬 What If My Company Has Debts or Unresolved Issues?
That’s when you can’t strike it off — you’ll need to go through voluntary winding up.
It sounds serious, but it’s a formal way to settle everything cleanly with creditors, tax, and SSM.
If you’re unsure which applies to you, that’s where a good company secretary comes in — we’ll help assess and advise what’s safest for your situation.
❤️ Closing Down Is Not a Failure
Many people feel embarrassed to close their company, but honestly — it’s normal.
Not every business needs to last forever.
What matters is that you close it properly, so it doesn’t come back to haunt you later.
It’s not about giving up; it’s about being responsible and starting fresh.
Some endings are just clean beginnings in disguise.
💬 Final Thoughts
If your company is inactive, don’t ignore it.
SSM doesn’t forget — and neither does LHDN.
Close it properly, clear your record, and move on peacefully.
You’ll thank yourself later.
At Trust Maven®, we help business owners review their company status, advise the best closure path, and take care of everything from start to finish — properly, legally, and with no surprises.
💌 Not sure if your Sdn Bhd is still active or already non-compliant?
Message us — we’ll check it for you and guide you on whether to revive or close it safely.