Did you know that failing to pay your annual fees for Sdn Bhd can lead to hefty penalties and potential business deregistration? Many business owners underestimate the importance of yearly compliance costs, only to find themselves facing fines or legal complications.
This guide breaks down all essential annual fees for Sdn Bhd, including what is Sdn Bhd yearly fee, mandatory compliance costs, and how to effectively manage these expenses. By understanding your obligations, you can ensure smooth business operations and avoid unnecessary penalties.
A Sdn Bhd company in Malaysia offers limited liability, tax benefits, and credibility, making it a preferred choice for growing businesses. However, maintaining compliance involves annual fees for company secretarial services, tax filing, auditing, and accounting.
Key costs include:
For a hassle-free solution, outsourcing these services to providers like Grof ensures compliance and financial health—without hidden costs.
Before exploring the annual fees for Sdn Bhd, it’s crucial to understand what this business structure entails and how it compares to other options.
A Sdn Bhd (Sendirian Berhad) is a private limited company in Malaysia that offers limited liability protection to its shareholders. This means that shareholders are only liable for the company’s debts up to their invested share capital, safeguarding their personal assets from business risks.
In contrast, other business structures such as sole proprietorships, partnerships, and limited liability partnerships (LLPs) do not provide the same level of asset protection. For instance:
Sole Proprietorships and Partnerships: The owners are personally liable for business debts, meaning creditors can claim personal assets if the business cannot meet its obligations.
Limited Liability Partnerships (LLPs): While LLPs offer some liability protection, partners may still be held responsible for specific debts and legal obligations, making them riskier than a Sdn Bhd.
A Sdn Bhd company requires at least one director and one shareholder, and it operates as a separate legal entity. This means it can:
A Sdn Bhd offers financial security, tax benefits, and stability, making it ideal for scaling businesses.
👉 Thinking about upgrading to a Sdn Bhd? Read our guide: Key Indicators to Upgrade Your Enterprise to a Sdn Bhd.
Before we delve into the annual fees associated with a Sdn Bhd, let’s explore the benefits of incorporating one. A Sdn Bhd, or Sendirian Berhad, is a type of private limited company prevalent in Malaysia, known for providing numerous advantages to business owners:
These features make Sdn Bhd an attractive option for entrepreneurs looking to establish a resilient and credible business presence in Malaysia.
“Yearly maintenance” refers to the fees you need to pay to keep your company compliant with the regulations and laws in Malaysia. There are typically four professionals that you will need to work with to ensure compliance and smooth operations:
Let’s explore each of these professionals in detail and understand their roles.
A Company Secretary plays a crucial role in ensuring your Sdn Bhd complies with the Companies Act 2016 and Suruhanjaya Syarikat Malaysia (SSM). In Malaysia, all Sdn Bhd companies are legally required to appoint a Malaysia Company Secretary, also known as a pemegang saham.
Their primary responsibilities include advising directors on compliance matters, filing statutory documents, and ensuring adherence to corporate regulations. While larger companies may employ an in-house Company Secretary, this is often not cost-effective for SMEs. Instead, many businesses outsource company secretarial services to professional firms like Grof for a more affordable and efficient solution.
The cost of appointing a company secretary in Malaysia varies based on service providers and company size. The typical charges include:
At Grof, we offer comprehensive and transparent Company Secretary services with no hidden costs. Our pricing depends on the number of shareholders and whether the company is local or offshore:
💼 For Local Sdn Bhd Companies:
1 Shareholder: RM3,800
2 Shareholders: RM4,100
3–5 Shareholders: RM4,600
🌍 For Offshore (Foreign-Owned) Companies:
1 Shareholder: RM15,800
2 Shareholders: RM16,100
3–5 Shareholders: RM16,600
📌 What’s Included?
Our all-in-one company secretarial package covers everything—including Annual Returns (AR) and Audited Financial Statements (AFS)—with no extra fees. For more details, visit Grof’s incorporation page.
Filing company taxes in Malaysia can be complex, and it is not advisable for business owners to handle it themselves. Hiring a tax agent in Malaysia ensures that your tax computations and filings are accurate and optimised. A tax agent will track deadlines and complete the tax computation with the Inland Revenue Board of Malaysia (IRB).
When incorporating your company, it is advisable to appoint a tax agent and fix your financial year-end. This allows the tax agent in Malaysia to monitor your tax compliance deadlines effectively. The typical cost for tax computation and filing for a startup company is between RM1,000 to RM1,500.
According to the Companies Act of 2016, all companies incorporated in Malaysia must have their accounts audited by an approved and qualified auditor. Engaging an auditor in Kuala Lumpur, the capital city of Malaysia, is not just about meeting legal requirements; it adds a layer of credibility to your business. Entrepreneurs and small business owners should view auditing as an opportunity to enhance financial transparency, instilling confidence in stakeholders and potential investors. This independent review strengthens financial credibility and instils confidence in stakeholders. An auditor:
The cost of an auditor for a startup company in the first year usually ranges from RM1,500 to RM2,500. After the auditor prepares the audited financial statements and they are approved by the board, they will be lodged with SSM within 30 days by the company secretary.
Accountants are the architects behind your financial statements. Before being audited by an external auditor, financial statements are meticulously prepared by accountants. Their role is not just confined to number-crunching; they provide insights into the financial health of your corporation. Engaging a skilled accountant is an investment in ensuring that your financial records are not just compliant but also strategically aligned with your business goals. Depending on your needs, your accounting fee would cost between RM500 to RM7,000 a year.
Before the auditor steps in, your accountant plays a crucial role. They:
Typically, accounting fees for a startup company range from RM500 to RM3,500 per year. The fee depends on the complexity and volume of transactions. For companies with a higher transaction volume, the accounting fee is usually higher.
To summarise the yearly costs of running a newly set up company in Malaysia, let’s take a look at the fees associated with each professional:
Professionals | Fees Range (RM) |
Corporate Secretary | 1,200 – 2,500 |
Accountant | 500 – 5,000 |
Tax Agent | 1,000 – 1,500 |
Auditor | 1,500 – 2,500 |
Total Yearly Cost | 4,200 – 11,500 |
It’s important to note that these costs are estimates and can vary depending on the complexity and size of your company. Additionally, it’s crucial to consult with professionals and service providers to get accurate pricing tailored to your specific requirements.
Managing and budgeting for annual recurring fees is crucial to ensure the financial sustainability of your SDN BHD corporate. Here are some tips to help you effectively manage these fees:
These tips help you manage annual fees and sustain your Sdn Bhd’s finances in Malaysia.
Managing these diverse professionals individually can be overwhelming, not to mention time-consuming and expensive. Consider Grof, your one-stop solution for seamless business compliance. We offer a comprehensive package encompassing company secretarial services, tax filing assistance, and accounting support, all under one roof. This means:
Effectively managing annual recurring fees is key to sustaining your Sdn Bhd in Malaysia. From company secretarial duties to tax and audit requirements, each professional service plays a vital role in ensuring compliance and financial stability.
With Grof’s all-in-one corporate services, you can streamline these processes effortlessly. Our integrated services cover company secretarial, tax, audit, and accounting services, ensuring full compliance with SSM while reducing administrative burdens.
Why worry about compliance when you can focus on growth? Let Grof handle the complexities of annual filings and fees, so you can dedicate your time to growing your business. Visit our website today to explore our incorporation and compliance services—your hassle-free path to business success starts here!