All companies registered in Malaysia, both local companies (Section 68) and foreign companies (Section 576), including Exempt Private Companies, are required to file an Annual Return (AR) with the Companies Commission of Malaysia (SSM).
The Annual Return provides updated information about the company, such as its directors, shareholders, and registered office. Failure to file the Annual Return on time may result in penalties, including fines and the possibility of being struck off the register.
Content Outline
Companies Act 2016
All companies in Malaysia are required to submit Annual Return (AR) to the Companies Commission of Malaysia (SSM) annually for every year.
The AR must be filed within 30 days from the anniversary of its registration/incorporation date in Malaysia. The basis of the submission is the calendar year and not the end of the financial year for the company. This implies that the AR should be prepared as at the end of the previous calendar year.
When is the Annual Return (AR) Due?
Here, we summarise it into an example to make it easy for you to understand.
| Company Name | ABC SDN. BHD. |
|---|---|
| Incorporation Date | 1 Aug 2023 |
| Anniversary Date | 1 Aug 2023 |
| Submission Due Date | 30 Aug 2023 |
Contents of Annual Return (AR)
The Annual Return (AR) shall contain the company’s particulars, such as:
- business activities
- the location of the business
- registered office
- particulars of its director(s)
- companies’ secretary(ies)
- members with its shareholding particulars in the company
Digitally signing and submission of the Annual Return (AR) to the Companies Commission of Malaysia (SSM) is done by the Company Secretary through Malaysian Business Reporting System (MBRS) portal.
This is part of the Company Secretary responsibility as the custodian of the company’s records and ensuring corporate compliance. With the MBRS portal being the mandated electronic platform via which all companies should file their AR, the process takes a straightforward process that guarantees information security.
Penalty for non-compliance
Penalties for failure to comply with the Annual Return (AR) filing requirements in Malaysia can be quite severe, including an arrest of both the company’s officers and imprisonment.
Failure to lodge the AR is an offense and may lead to a fine not exceeding RM50,000 upon conviction. For continued cases of non-compliance, daily fines of RM1,000 may be extended. In addition, if any company avoids this documentation submission for straight three years. It can be black listed from the registrar of Companies Commission Malaysia (SSM).
The regulations are severe and they push for the need to file timely AR. AR has essential data about the company that helps SSM keep proper records and make sure that registered businesses are compliant. As such, for purposes of avoiding legal actions and maintaining a good relationship with SSM, companies must prioritize AR submission.
Is there an Auto-reminder for Annual Return filing?
FastLane Group also sends upfront reminders about any future dues and simplifies submission of your company’s Annual Return (AR).
Our auto-reminders will never let you miss an important deadline again, and have plenty of time to prepare and submit your AR in advance. Our team of highly experienced and committed company secretaries will take care of the details involved in AR filing letting you concentrate on your core business. Talk to us now.