Dato Sri Alexander Nanta Linggi
KUCHING (Dec 15): The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) will expand its free business registration initiative to B40 youths and single mothers in an effort to stimulate and boost the growth of the domestic trade sector due to the impact of the Covid-19 pandemic.
According to its Minister Dato Sri Alexander Nanta Linggi, KPDNHEP through its agency, the Companies Commission of Malaysia (SSM) will formulate appropriate methods to enable these groups to take advantage of this free business registration scheme.
“SSM’s efforts to expand the free business registration initiative for B40 youths and single mothers will spark business interest and encourage more participation of these groups to venture into business.
“This can generate additional income returns that can support their daily lives and further boost the growth of the business sector in the country,” Nanta said when answering a question from Cha Kee Chin (PH-Rasah) on assistance to help the disabled (OKU), women, youths and students who are just starting their business in Parliament recently.
Having said that, Nanta said SSM also encourages youths and full-time students in public and private institutions of higher learning to register their business for free through the One Student One Business Scheme (S1P1P) which was introduced on Jan 1, 2017.
“People with disabilities are also advised to take advantage of the 1 OKU 1 Business Scheme (S1OKU1P) offered by SSM to register new businesses and renew business registration for free. This scheme was first introduced on Oct 23, 2012,” he said.
In addition, SSM had also developed SSM BizTrust products on July 20, 2017, aimed at creating an ethical online business environment.
SSM BizTrust is a recognition and quality standard given to a business entity regulated by the SSM on the condition that the entity complies with the principles and criteria that have been set.
“On Nov 20, 2020, SSM through this Ministry had announced the extension of SSM BizTrust registration period for free until Dec 31, 2021,” he said.
Apart from initiatives to help the disabled, women, youths and students, Nanta also revealed that SSM is also actively mobilising the affected business and corporate community sectors by implementing eight inclusive initiatives to reduce the burden of problems and pressures faced by the sector.
Among them is to implement a moratorium period of 30 days from the end date of the Movement Control Order (MCO) to submit the SSM statutory documents under the Companies Act 2016 and the Limited Liability Partnership Act 2012 which must be submitted to SSM from Mar 18, 2020 to Sept 30, 2020 where fees for late submission will be excluded.
SSM also provides exemption for late submission fees for statutory documents under the Companies Act 2016 following government’s directives to implement the Conditional MCO and the Enhanced MCO in some areas from Nov 9, 2020 to Dec 31, 2020.
“The third initiative also involves the extension of time to submit the financial statements to SSM for the financial year ended Sept 1, 2019 to Mar 31, 2020 and the extension of time is also given to the company to hold its annual general meeting. Companies needs to apply to SSM and a fee exemption of RM100 is given for both purposes,” said Nanta.
For the Fourth Initiative, he said that SSM has increased the threshold value of indebtedness under section 466 of the Companies Act 2016 from RM10,000 to RM50,000 to reduce the winding-up action against the company.
The period to answer the notice of claim by a company has also been extended to six months compared to the period of 21 days before MCO.
For the fifth initiative, KPDNHEP through SSM has also granted exemption to Limited Companies According to Guarantee (Syarikat Berhad Menurut Jaminan – SBMJ) which has been approved by the Inland Revenue Board of Malaysia (IRBM) under subsection 44 (6) of the Income Tax Act 1967 from the requirement to obtain the approval of the Minister of KPDNHEP or SSM to collect donations related to the Covid-19 pandemic until Dec 31, 2020.
“SBMJs which do not get approval under subsection 44 (6) of the Income Tax Act 1967 from the IRBM are still allowed to collect donations for the purpose of the Covid-19 pandemic provided that the SBMJ has to apply to SSM for the approval of the Minister of KPDNHEP or SSM within 30 days after the MCO period is over,” he said.
For the sixth initiative, Nanta said that SSM has extended the time period for company secretaries to comply with the requirement of 20 points Continuing Professional Education (CPE) for the renewal of practice certificates until Dec 31 which is subject to the prescribed conditions.
SSM has also provided a compound reduction rate of a maximum of 90 per cent of the original value of the compound against the compounds for common offenses under the Companies Act 1965 and the Companies Act 2016 until June 30.
“Compound due to business registration renewal delay under the Business Registration Act 1956 during the MCO period is also given an exemption from March 17 to Dec 31, 2020,” he said.
As for the eighth initiative, Nanta said that SSM has introduced the Compound Reduction Incentive for Cancellation of Company Name under Sections 549 and 550 of the Companies Act 2016 from Aug 17 to Dec 31.
This 90 per cent compound reduction rate applies to all compounds under the Companies Act 1965 and Companies Act 2016.
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