SSM Heavy Fines on Company, Sole Proprietor and Partnership

Update any changes in company information promptly

Recently we came across an interesting press release published by SSM on 26 October 2022 where the Registrar of Business (ROB) imposed a fine of RM4,000 on the owner of a sole proprietor as a result of giving a false business address.

This serves as a reminder to the public that prosecution will be taken against any person who is found to have given false or misleading statements and information to SSM. SSM is always consistent in regulating compliance with the law and ensuring the corporate community is aware of its responsibility and business ethics.

In this newsletter, we would like to emphasize and spread awareness to our client and the public that it is important to update the business or company’s particular promptly once there are any changes in the details.

Why it is important?

To avoid any heavy penalty imposed by SSM.

Accordingly to the following act governed under SSM, it is a requirement for the business owner or company’s directors to update any changes in the particular such as a change in residential address, or renewal passport number for foreign director and shareholder.

ROB Act, 1956 – Section 5B
Companies Act (CA), 2016 – Division 8 Registered Office and Registers - Section 51 and 58

When need to notify on the changes?

ROB - within 30 days from the date of changes
ROC - within 14 days from the date changes.

What are the penalty and fines if failure to comply?

a) Late filing fees are applicable as follows:

Private company:

- Not more than 3 months – RM 50.00

- More than 3 months but not more than 6 months – RM100.00

- More than 6 months but not more than 12 months – RM150.00

- More than 12 months – RM200.00

b) Compound upon conviction

ROB - not exceeding RM10,000 or to imprisonment for a term not exceeding 1 year or both

ROC -

i) Section 51 - not exceeding RM20,000

ii) Section 58 - not exceeding RM50,000

Final Words

In conclusion, the business owner and company directors’ must update any changes of information to SSM. The information provided to SSM must be true and correct to avoid any unnecessary penalty imposed by SSM.

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