eKTP 110

Audit Exemption for Certain Categories of Private Companies in Malaysia 


In line with the qualifying criteria for audit exemption stated accordance to Practice Directive No. 3/2017, Company that elects to be exempted from audit shall lodge its unaudited financial statements to Suruhanjaya Syarikat Malaysia (SSM) together with certificate in compliance with sections 258 and 259 of the Companies Act 2016. The preparation of unaudited financial statements shall comply with applicable approved accounting standards pursuant to subsection 244(1) of the Companies Act 2016.

On 4 November 2018, SSM further announced that submission for Annual Return, Exempt Private Certificate and Financial Statements (unaudited) had been commenced from 1 November 2018 by stages throughout whole Malaysia.

However, these are more not official/not published consensus in the market regarding the submission of Unaudited Financial Statements through MBRS System are as below:

  • Company incorporated less than 3 years are not allowed to file unaudited financial statements;

  • Company incorporated more than 3 years, financial statement must be audited at least two(2) preceding years; and/or

  • Company must have ZERO transactions in the financial statement for the last 2 years.

In the event if any Company does not fulfilled the above, it is preferable to submit Audited Financial Statements to SSM.

Please refer to the following link for further details: