What Is a “Strike Off” and When Should You Use It?
Striking off (often called “closure by way of strike-off”) is an informal route to dissolve a Sendirian Berhad (Sdn Bhd) without going through a full winding-up. Under Sections 549 & 550 of the Companies Act 2016, the Registrar (SSM) may remove an inactive, debt-free company from the register once all statutory conditions are met.
Typical reasons entrepreneurs choose strike-off:
- The company has ceased business and won’t restart.
- It holds no assets or liabilities (including bank balances).
- Renewal of licences, audited accounts or annual secretarial fees is no longer worthwhile.
Not suitable if: the company still owns property, owes money, or is in a dispute. In those cases consider voluntary winding-up or court liquidation.
Eligibility Checklist (Before You Apply)
A Sdn Bhd may apply only if all of the following are true:
- Dormant / no operations for ≥ 3 months.
- No assets and no liabilities on its balance sheet.
- No outstanding taxes, SST, EPF or penalties and has closed all bank accounts.
- Up-to-date statutory filings or, at minimum, no overdue charges owed to SSM.
- All directors & members consent (ordinary resolution).
- Not currently in liquidation, receivership or court proceedings.
(Tip: settle any late SSM penalties first; they cannot be waived once the strike-off starts.)
Step-by-Step Strike-Off Process
Typical timeframe: 6-9 months from submission to gazette.
| Stage | What happens | Who does it | Time est. |
|---|---|---|---|
| 1. Internal resolution | Directors circulate a resolution to strike off and confirm the company is debt-free. | Board / shareholders | 1 week |
| 2. Close accounts & licences | Pay final bills, close bank account, cancel permits. | Directors / secretary | 2-4 weeks |
| 3. Prepare Form [Section 550] | Company secretary drafts the Application to Strike Off plus directors’ statutory declaration. | Co. Secretary | 3 days |
| 4. Lodge with SSM | Submit the packet over the counter or via MyCoID, pay RM 100 filing fee. | Co. Secretary | Same day |
| 5. SSM preliminary review | Registrar checks documents; may request clarifications. | SSM | 30-45 days |
| 6. Gazette – First Notice | SSM publishes a notice in the Government Gazette giving 30 days for objections. | SSM | Day 0 of notice |
| 7. Waiting / objection period | If no objections, SSM proceeds. If an objection is lodged (e.g., creditor), application is paused. | Public / creditors | 30 days |
| 8. Gazette – Final Notice | SSM issues a final notice declaring the company struck off and dissolved. | SSM | ~4-6 months after step 4 |
Once the final notice appears, the company ceases to exist. Its name becomes available for reuse after 7 years unless restored by court order.
Key Documents You’ll Need
- Directors’ Resolution approving strike-off.
- Members’ (shareholders) Resolution.
- Latest Management Accounts showing zero assets & liabilities.
- Tax Clearance Letter or confirmation of final CP204 submission (where applicable).
- SSM Form under Section 550 + Statutory Declaration of Compliance.
- Proof that bank account is closed.
- If any shareholder cannot be located, proof of attempted contact (registered mail, email logs).
After the Strike-Off – What You Should Know
- Liability can revive. Directors and members remain liable for any fraud or future claims discovered after dissolution.
- Restoration is possible within 7 years via High Court order; all outstanding filings and penalties must be paid first.
- Name reuse. The old company name may be taken by someone else after 7 years.
Strike-Off vs. Voluntary Winding-Up
| Strike-Off | Members’ Voluntary Winding-Up | |
|---|---|---|
| Cost | Low (≈ RM 100 filing + professional fee) | Higher (liquidator fees, gazette ads) |
| Speed | ~6-9 months | 12-18 months |
| Debts Allowed? | No, must be debt-free | Yes, but debts settled through liquidation |
| Court / Liquidator | Not required | Licensed liquidator & statutory meetings |
| Suitable for | Dormant, asset-free companies | Companies with assets to distribute or liabilities |
How 1company Can Help – All-Inclusive Strike-Off Package
Closing a dormant Sdn Bhd shouldn’t drain your wallet or your time. Our professional secretarial team will:
- Check eligibility and advise on any clean-up actions.
- Draft directors’ & members’ resolutions and management accounts.
- Prepare & lodge the Section 550 application with SSM.
- Track gazette notices, respond to SSM queries, and provide regular status updates.
Transparent fee – one flat price that covers SSM’s RM 100 filing fee and all paperwork. (Contact us for today’s promo rate.)
👉 Ready to close your dormant company? Talk to our team and we’ll handle the entire strike-off while you focus on your next venture.
Last Updated: 28-Apr-2025