How Much Cost You To Maintain A Sdn Bhd
Importance of maintaining a Sdn. Bhd.
Maintaining a Sdn. Bhd. in Malaysia is crucial for the long-term success and sustainability of a business. As a legal entity, a Sdn. Bhd. has many requirements and obligations that must be fulfilled to comply with Malaysian law. These include maintaining proper financial records, holding annual general meetings, submitting annual returns to the Companies Commission of Malaysia (CCM), and more. Failure to comply with the legal requirements can lead to penalties and legal consequences, which can have a negative impact on the company's operations and financial performance. Click here for FAQ for Company Incorporation Sdn. Bhd.
Annual Compliance Requirements for Sdn. Bhd.
Business licence renewal
Submission of tax estimates
Submission of statements related with PCB
Submission of tax return
Financial Statements with Directors' Report lodgement
Annual return lodgement
I. Business licence renewal for Sdn. Bhd.
In malaysia, all businesses or company incorporation are required to renew their licenses annually to ensure that they comply with government regulations and continue to operate legally. This includes renewing business licenses for Sdn. Bhd. companies. The specific requirements may vary depending on the type of business, location, and industry, so it is important to check with the relevant authorities to ensure compliance. Therefore, it is essential for Sdn. Bhd. (private limited companies) to maintain proper records and stay up to date with their license renewals to avoid any potential issues.
You must first renew your company licence to avoid penalties. The certificate of business registration may be renewed at any time up to (12) months before the expiration date. The methods are listed below:
- Online Services through Ezbiz Online,
- Ezbiz Kiosk Machines, which are accessible at all SSM offices
- SSM registered agents
II. Submission of tax estimates for Sdn. Bhd.
A newly established company in Malaysia must project its tax liability for the first year of assessment based on expected company profits. Any taxable income that isn't withheld can have its estimated taxes calculated. Included are earned income, dividend income, rental income, interest income, and capital gains. Each quarter, anticipated tax payments must be made to the Federal Revenue Service (IRS) by anybody whose income is not subject to automatic withholding. The taxpayer then provides the required tax documentation for the whole year, paying any outstanding amounts or requesting a refund of any overpayments.
III. Submission of statements related with PCB
To submit the PCB statements, the employer must first calculate the monthly tax deduction for each employee using the PCB schedule provided by the LHDN. The employer then needs to prepare the PCB statements, which include information such as the employer's and employee's details, salary information, and the tax deductions made.
The PCB statements must be submitted to the LHDN no later than the 15th of the following month after the tax deduction was made. Failure to submit the statements or submitting them late may result in penalties or fines imposed by the LHDN.
As an employer, you must provide the following documentation to LHDN.
- Statement of remuneration (paid to employees)
- Record of annual deduction of PCB
It is important for company in malaysia who is employers to ensure timely and accurate submission of the PCB statements to avoid any penalties and to maintain compliance with the tax laws in Malaysia.
IV. Submission of tax return for Sdn. Bhd.
Submission of tax returns is a crucial aspect of maintaining compliance for any business entity, including Sdn. Bhd. companies, in Malaysia. Under the Malaysian tax system, companies are required to file their tax returns annually to the Lembaga Hasil Dalam Negeri (LHDN).
The deadline for submission of tax returns for Sdn. Bhd. (private limited company) companies in Malaysia is typically on or before 30th June of the following year. Companies must ensure that their tax returns are submitted accurately and in a timely manner to avoid any penalties or fines.
It is also essential to include all the necessary supporting documents, such as audited financial statements, tax computation, and other relevant schedules. Companies are required to submit their tax returns in electronic form through the IRB's online portal or via a registered tax agent.
V. Financial Statements with Directors' Report lodgement
Accountants are usually the first to compile yearly financial accounts. Following that, the auditor prepares the auditor's report and the director prepares the director's report.
The director's report includes the following information:
- Company activities
- Company shares and dividends
- Analyses of businesses
These documents are signed by the commissioner and given to the company secretary. The secretary is then in charge of distributing the director's report to the auditor and shareholders.
Following board approval, the company secretary submits financial statements and a director's report to the SSM (suruhanjaya syarikat malaysia). Within six months of the FYE, this report must be distributed. The financial statement, together with the director's report, must be filed within 30 days following its circulation.
III. Annual return lodgement for Sdn. Bhd.
An annual return is a document that contains important information about the company's financial and operational status over the previous financial year. It includes details such as the company's registered office, principal business activities, directors, shareholders, and auditors.
The Companies Commission of Malaysia (SSM) requires that all companies submit their annual returns within one month of their annual general meeting (AGM) or within seven months after the end of their financial year, whichever is earlier. After one year, it is the responsibility of your company secretary to compile the annual return and submit it to the SSM. These documents must be provided annually within 30 days from the incorporation date of a company.
What are the fundamental compliance costs that must be paid?
A company secretary's responsibility is to manage your firm's secretarial issues in compliance with the Companies Act 2016 with Suruhanjaya Syarikat Malaysia (SSM). For this, you'll need a qualified authorised company secretary in malaysia to act as one of the firm's officers. Small business would not often hire its own secretary since it is too costly. Every calendar year, all private limited businesses must file an Annual Return with the SSM within thirty (30) days of their anniversary of incorporation date.
Accountants frequently create financial statements before they are audited by auditors. Some businesses may have their own accountant, and there is no price for outsourcing in this case. However, due to cost reductions and efficiency, businesses may choose to outsource this job to a freelancer or service providers such as Altomate. Depending on business requirements, your accounting charge might range from RM500 to RM7,000 each year. Typically, a starting firm will spend roughly RM5,000 per year on outsourced accounting services. Click here for more on our services > https://altomate.io/my/Bookkeeping/
According to the Companies Act of 2016, all firms formed in Malaysia must have their accounts audited by an authorised and competent auditor by audit firm. Professional fees are often assessed based on the size of the organisation (for example, revenue, assets, and costs). The Malaysia Institute of Accountants (MIA) has a price guide that most audit companies would follow. The audited financial statement will be submitted to the SSM within 30 days of the Company Secretary's circulation per year.
It is not advised for business owners to submit their own company taxes since they are difficult and may miss possibilities for optimisation. Business owners should focus on operating their firm and leave tax calculation and filing with the Malaysian Inland Revenue Board (IRB) to tax specialists. It is best to establish your financial year end and hire a tax agents as soon as your company is founded so that they can maintain track of your tax compliance deadlines. The tax charge for a new business is normally between RM1,000 and RM1,500.
GETTING DOWN TO BUSINESS
We hope that our article on the various key features of Xero cloud based accounting software has persuaded you to change from the traditional application of accounting software and invest in a powerful cloud based accounting software. Feel free to get in touch with our team of expert in cloud accounting solution, accounting services , bookkeeping, taxation, company secretary. Reach in touch with us at email@example.com