Quick answer: Under the Companies Act 2016, the maximum penalty for not lodging the annual return (section 68(1)) or the financial statements (section 259(1)) is RM50,000 each. The Registrar may strike off a company that fails to lodge its annual return for three or more consecutive years. SSM charges RM100 per application for an extension of time, waived lodgement or relief, and RM300 to appeal to the Minister under section 27 or 247.
- Annual return: maximum penalty RM50,000.
- Financial statements: maximum penalty RM50,000 for lodgement and RM500,000 for not preparing them.
- Three or more years of annual return default can lead to strike-off.
- Extension of time or relief costs RM100 per application.
- Ministerial appeal costs RM300.
Deadlines and Maximum Penalties
| Item | Deadline | Maximum penalty |
|---|---|---|
| Annual return (s68(1)) | 30 days after incorporation anniversary | RM50,000 |
| Lodge financial statements, private company (s259(1)) | 30 days after circulation | RM50,000 |
| Circulate financial statements, private company (s258(1)) | 6 months after year end | Not stated |
| Prepare financial statements (s248(1)) | First set 18 months, later sets 6 months | RM500,000 |
| Table at AGM, public company (s340(2)) | At the AGM | RM20,000 |
Strike-Off Risk
SSM's booklet says the Registrar may strike off a company that has not lodged its annual return for three or more consecutive years. A struck-off company is no longer on the register, so late filers should not wait.
Relief Fees
| Application | Fee |
|---|---|
| Extension of time, waived lodgement or relief on financial statements or annual return | RM100 per application |
| Appeal to the Minister under section 27 or 247 | RM300 |
What the Sources Do Not State
The SSM pages reviewed state maximum penalties but do not state daily default penalties or compound amounts. The amount actually imposed can differ from the maximum, so ask SSM or your company secretary what applies to your case.
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Mistakes
Leaving several years unfiled
Three consecutive years of annual return default can lead to strike-off.
Waiting for the notice
Apply for relief before the deadline passes where possible.
Treating the maximum as the usual penalty
The maximum is a ceiling, not the amount charged.
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What we handle for you
Accounts and filings
- Keep your accounting records and prepare year-end financial statements.
- Help with the tax and statutory filings that follow from your accounts.
Payroll
- Run payroll and prepare the monthly and yearly payroll filings.
Why companies choose us
Accounting, payroll and company set-up under one roof
- We also handle company incorporation and expatriate pass applications, so your accounts, payroll and structure stay aligned.
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Frequently Asked Questions
Quick answers.
What is the penalty for a late annual return?
A maximum of RM50,000 under section 68(1).
What is the penalty for late financial statements?
A maximum of RM50,000 for not lodging them under section 259(1).
What if financial statements are not prepared?
A maximum penalty of RM500,000 under section 248(1).
What is the deadline for the annual return?
30 days after the anniversary of incorporation.
What is the deadline to lodge financial statements?
30 days after circulation for a private company.
Can SSM strike off a company for late filing?
The Registrar may strike off a company that has not lodged its annual return for three or more consecutive years.
Can I ask for more time?
Yes. SSM charges RM100 per application for an extension of time, waived lodgement or relief.
How do I appeal?
To the Minister under section 27 or 247, for RM300.
Is there a daily penalty?
The pages reviewed do not state one.
Who lodges the filing?
A licensed company secretary or company's agent.
Is there a no-change option for the annual return?
SSM's FAQ describes a signed statement under section 68(6) as a substitute where nothing has changed.
Can you help us catch up?
Yes. We prepare the accounts and arrange the filings.
Sources
Official sources
- SSM, Company Directors' Responsibilities booklet
- SSM, Annual submission (annual return and financial statements)
- SSM, Companies Act 2016 FAQ Part M
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with LHDN, the Royal Malaysian Customs Department and SSM, or with us, before you act. Checked November 2026.
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