Liquidation in Malaysia

1. Striking Off (Solvent Companies)

This is the most efficient route for companies that never started business or have ceased operations and cleared all debts.

• Requirements: Directors must declare that the company has no assets, no liabilities, and no outstanding dues to government authorities.

• Timeline: Usually takes 6 to 12 months, pending approval from the Companies Commission of Malaysia (SSM).

• Note: A struck-off company can be restored within 15 years via a Court Order.

2. Members’ Voluntary Liquidation (MVL) (Solvent Companies)

Used when a company is solvent (can pay its debts within 12 months) and shareholders choose to close it.

• Process: Directors file a “Declaration of Solvency.” Shareholders then appoint a Liquidator to manage the closure, notify authorities (SSM, IRB, EPF, etc.), and distribute remaining assets.

• Timeline: Approximately 2 years, depending on how quickly government clearances are received.

• Cost: Our professional fees start from RM15,000 (excluding out-of-pocket expenses like advertisements and tax submissions).

3. Creditors’ Voluntary Liquidation (Insolvent Companies)

If a company cannot pay its debts, it may propose a voluntary winding up to its creditors. The creditors typically have the final say in choosing the Liquidator to ensure their interests are protected.

4. Compulsory Winding Up (Insolvent Companies)

This occurs when the High Court orders a company to close, often due to an inability to pay debts or shareholder disputes. This process ensures assets are distributed fairly (on a pari passu or equal footing) among all creditors.