A company strike-off is a legal way to formally close a company that is no longer operating. Under section 550 of the Companies Act 2016, a director or member of an eligible company can apply to SSM to have it struck off the register. It's simpler than a winding-up, but it isn't available at any time. The company must first meet a set of conditions.
Which companies can apply for a strike-off?
Generally, a company can be struck off only if it is no longer operating and meets these conditions:
- It has stopped operating, with no intention of resuming business
- It has no assets, no liabilities and no outstanding charges
- It has settled all tax and holds a tax clearance letter from LHDN, and has no outstanding SSM penalties or legal proceedings
- It has lodged its annual returns and financial statements, and completed its tax obligations, up to the point it ceased operating
How long does a company strike-off take?
A strike-off doesn't take effect the moment the application is submitted. Once SSM receives the application, it reviews and publishes a notice, and the whole process typically takes several months, depending on the case and whether any objections are raised. If the company still has unresolved matters, the application can be rejected.
What closing tasks are often overlooked before a strike-off?
Many businesses focus only on "closing the company" and overlook the closing tasks: settling employees' EPF, SOCSO and final salary payments, closing the bank account, and organising and keeping the company's financial statements and records. If there were any director or shareholder changes along the way, the related filings, such as a director change, should be completed first. A company secretary can help identify and coordinate these closing steps before the strike-off application is submitted.
This content is for general reference only and does not constitute legal or tax advice. For your own situation, please book a consultation so that GXY's advisory team can advise on your actual circumstances. Last updated: 20 August 2026.
