Whether your company has achieved the objective for which it was set up for, or the management of the company has decided to call it a day and retire, or your younger generation is not interested in taking over the business, you would then consider the option of either selling your business or giving your company a proper closure.
For a company which is solvent, basically there are two (2) options for closing down the company.
You could either opt for Striking Off or Voluntary Liquidation.
The choice depends on whether the company fulfills the criteria for the respective options. For most people, just by looking at the cost, would have opted for Striking-Off.
Striking Off is a fairly simple procedure as compared to Voluntary Liquidation. In short, upon fulfilling the condition to strike-off, the company’s name would be deleted from Companies Commission of Malaysia (“SSM”) and the company shall be dissolved.
Voluntary Liquidation is more costly compared to strike-off, reason being, the liquidation process is more stringent with advertisement and letters of clearance from authorities required.
So which option should you choose? Well, it really depends on your company circumstances and your risk appetite. If your company has been very active and has been in business for a long time, or if your company is having surplus of cash waiting to be distributed to shareholders, a Voluntary Liquidation would be preferred. However, if your company has not been active or was only incorporated for a short period you may be comfortable with having the company struck-off.
If you are interested to know more about Striking Off, do read our article on the effects of Striking Off here.
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