Do I still need to keep accounting records after my company is struck off or closed?
Yes. Closing or striking off a company does not end the need for records. Section 245 requires seven years' retention, directors' and officers' liability continues after striking off, and LHDN can review past years. Decide who will hold the records and for how long before you close.
Dissolution ends the company, but questions about past years can still arise, from LHDN, creditors, former employees or a liquidator.
What the law says
- Records of transactions are kept for seven years after the transactions were completed (section 245(3))
- Tax documents are kept for seven years from the end of the relevant year of assessment (Income Tax Act, section 82A)
- If a company is wound up, the liquidator keeps the books and papers for five years from dissolution and may then destroy them (section 518(2))
- If a company is struck off, it is dissolved, but the liability of every director, officer and member continues and can be enforced as if the company had not been dissolved (section 554)
- A person aggrieved by a striking off can apply to the Court within seven years to have the company reinstated (section 555)
The Act does not name who must hold the records of a struck-off company, so the safest course is for the former directors to keep them for the full period.
Practical steps before closing
- Make sure all financial statements and tax returns are filed up to date
- Settle liabilities and clear the director's account
- Take a full digital backup of ledgers, bank statements and key documents
- Name a person responsible for the archive and note where it is stored
- Keep the archive for at least seven years, longer for contracts, property or disputes
Storage is cheap compared with reconstructing records for an LHDN query, so do not destroy them early.
Legal basis
- Companies Act 2016, s.245(3)
- Companies Act 2016, ss.518(2), 554, 555
- Income Tax Act 1967, s.82A
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- Does a dormant company still need accounts and filings?Yes. A dormant company must still keep records, prepare financial statements, lodge them and the annual return with SSM, and file tax returns. It may be exempt from audit under SSM Practice Directive 10/2024. Consider striking off if it has no future.
- What is the difference between bookkeeping and accounting in Malaysia?Bookkeeping is the day-to-day recording of transactions: sales, purchases, payments and receipts. Accounting uses those records to prepare financial statements, interpret results and support decisions and tax filing. Good bookkeeping comes first, because accounts can only be as reliable as the entries beneath them.
- Is a Sdn Bhd legally required to keep accounting records?Yes. Section 245 of the Companies Act 2016 requires every company, including its directors and managers, to keep accounting and other records that explain its transactions and financial position. This applies even to a new, dormant or loss-making company.
- How long must a Malaysian company keep its accounting records?A company must keep accounting records for seven years after the transactions they record were completed. For tax, documents must be kept for seven years from the end of the relevant year of assessment. Use whichever period ends later.
- What documents should a Malaysian company keep for bookkeeping?Keep every document that proves a transaction: sales and purchase invoices, receipts, bank statements, contracts, payroll records, and records of assets and loans. If a transaction is not supported by a document, it is hard to defend in an audit or tax review.