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Q：
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What is the process to cease a branch office in Malaysia?
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A：
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To cease a Malaysia branch office, the foreign parent company must first pass a board resolution to approve the said closure/cessation of the operation of branch office. From there, the branch office needs to wind down the business by paying off all outstanding debts, settling employee statutory accounts, and obtaining tax clearance from LHDN. Finally, the agent shall lodge the Notice pursuant to Section 578(1) of the Companies Act 2016 (“Notice of Cessation”) with Companies Commission of Malaysia (“CCM”) within 7 days of the cessation date.
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Q：
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What documents are required for the be lodged with CCM for cessation of a branch office?
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A：
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The following documents are required to be lodged with the CCM:
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Notice of Cessation
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A certified board resolution from the parent company approving the branch closure
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Q：
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How long will it take for the Registrar remove the name of a branch office?
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A：
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The Registrar will remove the name of the branch office upon the expiry of 12 months from the date on which the Notice of Cessation has been lodged.
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Q：
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Will any certificate be issued by the Registrar once the name of a branch office has been removed?
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A：
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No certificate will be issued by the Registrar. However, the agent or the interested party may purchase the company profile from CCM after the expiration of 12 months to verify the branch office status is reflected as “remove”. Alternatively, the status of the branch office may also be verified through the e-Search feature in CCM website.
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Q：
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Can the cessation notice be withdrawn after it has been filed with CCM?
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A：
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Once a Notice of Cessation is filed and processed by CCM, it cannot be reversed or undone because the Companies Act 2016 doesn’t provide a "withdrawal" mechanism.
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