KUALA LUMPUR, Aug 18 (Bernama) -- The Companies Act 2016, which came into operation on Jan 31, 2017, requires all companies to prepare and audit their financial statements before lodging them with the Companies Commission of Malaysia (SSM).
In a statement today, SSM, however, said, under section 267(2) of the Act, the Registrar of Companies could exempt selected categories of private companies from having to appoint an auditor and to impose the criteria and conditions accordingly.
"To this end, on Aug 4, 2017, SSM issued the Practice Directive No. 3/2017, highlighting that dormant, zero-revenue and threshold-qualified private companies are eligible to elect for audit exemption," it said.
SSM said a dormant company qualified for audit exemption if it has been dormant from the time of its incorporation, or it was dormant throughout the current financial year and in the immediate preceding financial year.
"A zero-revenue company is qualified for audit exemption if it does not have any revenue during the current financial year; it does not have any revenue in the immediate past two financial years; and, its total assets in the current Statement of Financial Position do not exceed RM300,000 as well as in the immediate past two financial years," it said.....