Can a company change its financial year end, and how?
Yes. The Companies Act 2016 does not state a maximum length for a financial year or how often it can change. But a new year end that pushes the circulation or lodgement date later needs an extension of time from SSM, applied for before the original deadline. A subsidiary's year end must also stay in line with its Malaysian holding company's.
A change of year end is normal when a business is acquired, restructured or aligns with a new parent. The rules to know are these.
- First statements: section 248(1) requires the first financial statements within 18 months of incorporation and later ones within six months of each financial year end.
- Extension of time: SSM's Part M FAQ says that if a company changes its year end and the new circulation or lodgement date is later than the original, it must apply for an extension of time before the original due date. A private company applies at least seven days before the last day of the original circulation period. If the change does not produce a later date, no application is needed.
- Group companies: under section 247, the directors of a Malaysian holding company must ensure that each subsidiary's year end coincides with theirs within two years, and may not alter year ends so they stop coinciding without the Registrar's consent. The Registrar can authorise a different year end on application.
- A shortened or lengthened year produces a transitional period, so comparatives in the financial statements need explaining.
- Tax basis periods change too, so tell LHDN so the filing deadlines match.
Checklist:
- Decide the reason and the new date
- Ask the company secretary to handle the SSM steps and any extension request
- Do this before the original year end and deadlines pass
- Update the accounting software and the tax records
- Tell the auditor and tax agent
Plan this early; a retrospective change is harder.
Legal basis
- Companies Act 2016, s.247
- Companies Act 2016, s.248(1)
- Companies Act 2016, s.259(2)
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
- 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.
- How soon must transactions be recorded in the books?Under section 245 of the Companies Act 2016, entries must be made in the accounting records within 60 days after the transaction is completed. Leaving the books for a full year-end rush is therefore not compliant.
- How do I choose my company's financial year end?You choose it, usually when you incorporate, and it is not fixed to 31 December. Pick a date that suits your business cycle and your accountant's workload; every later deadline for financial statements and filings is counted from it.
- What do a company's financial statements contain?A company's financial statements normally include a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows and notes with accounting policies. The set must give a true and fair view.
- Who prepares and approves a company's financial statements?Directors are legally responsible for the financial statements. An in-house accountant or external firm often drafts them, but the board approves them by resolution and signs a directors' statement. The statements are then presented to the members.