The Companies Commission of Malaysia (SSM) has recently intensified its enforcement of annual return compliance regulations. This development has serious implications for all companies operating in Malaysia, especially those that have not kept up with filing obligations for their company annual return, Audited Financial Statements (AFS), and Ultimate Beneficial Ownership (UBO) declarations.
Many organisations are still unaware of how important it is to meet statutory deadlines. Yet, inaction now could cost more than just fines; it could lead to the suspension of your company secretary’s licence or the striking off of your company from the register.
If your business is not yet compliant, it is essential to act immediately. With the right corporate governance support, such as the expertise provided by BoardRoom Malaysia, your company can align quickly and effectively with all of Malaysia’s annual return requirements before enforcement actions begin.
What Is Driving SSM’s Crackdown?
Low Compliance Rates Among Malaysian Companies
Despite clear regulatory obligations, a significant number of companies continue to overlook or delay their annual return submissions in Malaysia. This widespread non-compliance has triggered the SSM’s heightened surveillance and zero-tolerance approach.
Stricter Enforcement Timeline
SSM has made it clear that submitting company annual return filings and related documents is no longer an administrative task to be taken lightly.
SSM has outlined a phased enforcement plan:
- July 2025: Show-cause letters to non-compliant company secretaries.
- August 2025: Issuance of compounds under Section 259(1) of the Companies Act 2016.
- Post-September 2025: Full enforcement actions
Late or inaccurate filings will be treated as serious non-compliance issues, subject to legal penalties.
Who Is at Risk?
Company secretaries may face licence suspension if the entities under their care persistently fail to meet their statutory responsibilities. Likewise, directors are personally accountable for ensuring that their company complies with all requirements, including the timely submission of the company’s annual return and AFS documents.
Dormant Companies Are Not Exempt
Many businesses mistakenly assume that dormant or inactive companies are exempt from these filing obligations. However, unless the company has been formally struck off or liquidated, it must still submit its annual return documentation annually. Ignoring this can lead to penalties and administrative complications.
SSM’s Moratorium Until 30 September
Recognising the need for a transitional period, SSM has granted a temporary moratorium until 30 September 2025. During this time, companies have a limited window of opportunity to rectify non-compliance issues for eligible applicants before tougher enforcement action begins.
Risks of Non-Compliance
Failing to meet annual return compliance obligations can trigger multiple issues, extending beyond monetary penalties.
Every day of delay increases the fines and compounds the risk. Over 36,000 fines were issued in 2024 alone, with the majority related to late AR submissions. Such delays can turn into costly compliance issues, particularly if left unaddressed for months or years.
Compliance records are public. Late or missing filings reflect poorly on your business’s reliability, governance, and transparency. Investors and business partners are less likely to trust organisations with inconsistent corporate practices.
Non-compliance may prompt an investigation or result in your company being struck off the SSM register. This can significantly impact your ability to operate, conduct business, or access financing.
How to Ensure Annual Return Compliance
In this environment of stricter oversight, businesses must prioritise accuracy, timeliness, and transparency in their filings.
Here are steps you can take immediately to protect your business:
Take Immediate Measures
Conduct a full compliance review by evaluating the current status of your company’s filings. Ensure that your company’s annual return, AFS, and UBO declarations are up to date. If any documents are missing or overdue, submit them before the moratorium ends.
Implement Annual Return Reminders
Create a structured compliance calendar. Use digital tools to automate your annual return reminder system and track key deadlines. This reduces the risk of human error and makes year-round compliance easier.
If you are working with multiple entities or subsidiaries, a centralised system for annual return reminders can help you to avoid gaps in compliance across different company structures.
Engage with a Trusted Compliance Partner
Navigating these statutory filing requirements internally can be time-consuming, resource-intensive, and likely to result in mistakes. Collaborating with a professional services provider like BoardRoom ensures that all legal obligations, including annual return compliance and timely financial statement submissions, are met accurately and efficiently.
By partnering with an experienced provider, you not only receive timely annual return reminders, but also gain peace of mind knowing that your company’s annual return obligations are managed in line with SSM’s AR Malaysia framework.
With a trusted compliance partner, your internal team can remain focused on core operations while regulatory professionals handle the complexity of Malaysia’s annual return requirements and other SSM submissions.
Annual Return Compliance in Malaysia – How BoardRoom Can Help
Annual return compliance in Malaysia requires coordination across both corporate secretarial and accounting functions. Our team ensures that your annual filings, from statutory returns to financial statements, are accurate, timely, and fully compliant with SSM requirements.
If your organisation has dormant or inactive entities, leaving them idle can increase compliance risks and add unnecessary administrative costs. Properly closing such companies through strike-off or voluntary liquidation helps streamline operations and strengthens your group’s overall compliance status.
Whether your business is active or no longer operational, we provide end-to-end support for both corporate secretarial and accounting compliance, including:
- Preparing and finalising Audited Financial Statements (AFS) and converting to XBRL for MBRS submissions
- Filing Annual Returns and updating Beneficial Ownership (BO) details
- Ensuring timely and accurate submissions across all SSM corporate secretarial and accounting compliance requirements
- Advising on and executing company strike-offs or Members’ Voluntary Winding Up (MVWU) for dormant entities
By partnering with BoardRoom, you gain the assurance of full annual return compliance across both secretarial and accounting obligations, while reducing the strain on your internal resources.
Act Now to Secure Compliance
Now is the time to act. With the SSM moratorium ending on 30 September 2025, the risk of non-compliance is increasing daily. Financial penalties, operational disruptions, and reputational damage are all avoidable if you act early.
Whether you need help filing your company’s annual return, ensuring your AR records are up to date, or closing dormant entities that no longer serve a purpose, BoardRoom is here to support you.
Our experienced team is ready to help you stay compliant with all aspects of Malaysia’s annual return regulations from timely submissions to strategic advice on corporate restructuring.
Reach out to us today to get expert support and complete peace of mind.