Introduction: Compliance Starts After Incorporation
Setting up a Private Limited Company (Sdn. Bhd.) in Malaysia is widely regarded as the most credible and scalable business structure for both local and foreign entrepreneurs. However, incorporation is only the first step.
Once your company is registered with Suruhanjaya Syarikat Malaysia (SSM), a series of statutory, tax, and employment compliance obligations immediately arise.
Failure to comply may result in:
- Monetary penalties and late payment charges
- Loss of tax incentives
- Director disqualification
- Increased audit and tax exposure
This guide provides a practical, end-to-end compliance checklist for newly incorporated Sdn. Bhd. companies, covering:
- Annual statutory filings
- Audit requirements
- Corporate tax and tax estimates
- Employer tax filings
- Statutory contributions (EPF, SOCSO, EIS, PCB)
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1. Annual Return Filing with SSM
Every Sdn. Bhd. must submit an Annual Return to SSM to confirm that the company’s statutory information remains accurate and up to date.
The Annual Return must be lodged within 30 days from the anniversary of the company’s incorporation date. Information disclosed includes:
- Registered office address
- Nature of business
- Directors and shareholders
- Company secretary details
Although this filing appears administrative, late submission attracts penalties, and repeated non-compliance may trigger regulatory action. Importantly, directors remain legally responsible, even if a company secretary is appointed.
2. Financial Statements and Audit Requirements
Is Audit Mandatory for a New Sdn. Bhd.?
Under the Companies Act 2016, audit is mandatory by default unless the company qualifies for audit exemption.
Audited financial statements must be lodged with SSM within six (6) months after the financial year end (FYE).
Example:
If the FYE is 31 December 2025, the audited financial statements must be filed by 30 June 2026.
Audit Exemption
A newly incorporated company may qualify for audit exemption if all prescribed thresholds are met, including:
- Annual revenue below the stipulated limit
- Total assets below the prescribed value
- Number of employees below the threshold
Despite being exempt, many companies voluntarily proceed with an audit, particularly if they:
- Require bank financing
- Intend to apply for grants or incentives
- Plan to onboard investors
- Are preparing for regional expansion
Audited accounts also enhance corporate governance, transparency, and credibility.
3. Corporate Income Tax Registration and Filing
Upon incorporation, a company must register for corporate tax with Lembaga Hasil Dalam Negeri (LHDN).
Corporate Tax Rates (SME)
A Sdn. Bhd. is generally taxed at:
- 15% on the first RM150,000 of chargeable income (qualifying SMEs)
- 17% on chargeable income from RM150,001 to RM600,000
- 24% on subsequent chargeable income
Paid-up capital, shareholding structure, tax residency, incentives, and industry-specific exemptions may affect the effective tax rate.
4. Estimated Tax Payable (CP204)
All companies must submit an Estimate of Tax Payable (CP204) within three (3) months from the commencement of business.
The CP204 determines the company’s monthly tax instalments, payable over 12 months.
Revision of CP204 (CP204A)
Companies may revise their estimate via CP204A in the:
- 6th month
- 9th month
- 11th month
This is typically done when:
- Actual performance differs significantly from projections
- Business conditions change
- Revenue increases or declines materially
Failure to submit CP204 or under-estimating tax may result in penalties and late payment charges.
Subsequent Year CP204
For subsequent financial years, CP204 must be filed one (1) month before the start of the new financial year.
Example:
If the financial year begins on 1 January 2026, CP204 must be filed by 30 November 2025.
Subsequent Year CP204(A)
For tax estimate revision, it will required to be filed by 30th of the given month (i.e. 6th, 9th or 11th month of the financial year)
5. Form C: Corporate Income Tax Return
Form C is the company’s annual corporate income tax return.
It must be submitted:
- Within seven (7) months after the financial year end
- Together with tax computations and supporting disclosures
Even if the company is dormant or loss-making, Form C must still be filed. Many penalties arise not from tax payable, but from late or non-submission.
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6. Employer Tax Obligations: EA Form, Form E, CP22 & CP22A
Once a company hires employees or pays remuneration to directors, employer-level compliance begins.
EA Form
The EA Form summarises remuneration, benefits, EPF contributions, and PCB deducted for each employee.
It must be issued to employees by 28 February of the following year.
Form E (Employer’s Annual Return)
Form E summarises:
- Total number of employees
- Total remuneration paid
- PCB deductions
It must be submitted to LHDN by 31 March each year.
CP22 & CP22A
These forms notify LHDN of changes in employee status:
- CP22 – New employee
- CP22A – Employee cessation or departure from Malaysia
Both must be submitted within 30 days of the relevant event.
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7. Statutory Contributions: EPF, SOCSO, EIS, PCB & HRD Corp
Employees Provident Fund (EPF)
EPF registration is mandatory once employees are hired. Contributions are shared between employer and employee and paid monthly.
SOCSO (PERKESO) & Employment Insurance Scheme (EIS)
SOCSO provides protection against employment injury and invalidity, while EIS covers job loss benefits.
Late or incorrect contributions may expose directors to personal liability.
Monthly Tax Deduction (PCB / MTD)
PCB is a system of monthly income tax deduction made by employers from employees’ salaries and remitted to LHDN.
Human Resources Development Fund (HRD Corp)
Companies in prescribed sectors with 10 or more Malaysian employees must register with HRD Corp and contribute a levy.
The levy can later be utilised for:
- Employee training
- Upskilling programmes
- Approved HRD courses
Payment Deadline
EPF, SOCSO, EIS, PCB, and HRD Corp levy must be paid by the 15th of the following month.
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Summary Table: Key Compliance Obligations for a New Sdn. Bhd.
| Compliance Area | Filing / Obligation | Deadline / Frequency |
| Annual Return | SSM Annual Return | Within 30 days of incorporation anniversary |
| Financial Statements | Audit / Unaudited FS | Within 6 months after FYE |
| Corporate Tax Estimate | First CP204 | Within 3 months of commencement |
| Corporate Tax Estimate | Subsequent year CP204 | 1 month before the commencement of the next financial year |
| Corporate Tax Estimate Revision | CP204A | By the 30th of 6th, 9th or 11th month of the financial year |
| Corporate Tax Return | Form C | Within 7 months after FYE |
| Employer Return | Form E | By 31 March annually |
| Employee Income Statement | EA Form | By 28 February |
| New Employee Notification | CP22 | Within 30 days of hiring |
| Employee Cessation | CP22A | Within 30 days of cessation |
| EPF Contributions | Monthly | By 15th of following month |
| SOCSO & EIS | Monthly | By 15th of following month |
| MTD/PCB | Monthly | By 15th of following month |
| HRD Corp Levy | Monthly (if applicable) | By 15th of following month |
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Disclaimer: This article is provided for general informational purposes only and does not constitute professional advice; readers should seek advice from their own accountant or adviser, and Amaze Advisory Global Sdn. Bhd. accepts no responsibility or liability for any reliance placed on this information.
