When must a new Sdn Bhd appoint its first auditor?
The board must appoint the first auditor at least 30 days before the end of the period allowed for lodging the company's first financial statements with SSM. The first financial statements must be prepared within 18 months of incorporation.
Two sections work together.
Section 267(3)(a): for a newly incorporated private company, the Board appoints the auditor at least thirty days before the end of the period for submission of the first financial statements to the Registrar.
Section 248(1)(a): the directors must prepare the first financial statements within 18 months of incorporation. Later statements are due within six months of each year-end.
Practical timeline
- The first financial year can be up to 18 months long, depending on the year-end you choose.
- Working backwards from circulation (within six months of year-end) and lodgement (30 days after circulation), you will see the latest appointment date. Most companies appoint much earlier so the auditor can attend the year-end stock count and plan the work.
- If the board fails to appoint, members can appoint by ordinary resolution (section 267(4)(b)).
Before appointing
- The auditor must have consented in writing (section 264(5)).
- Check the person is an approved company auditor and independent (see the related questions).
Remember you may be eligible for audit exemption (dormant, or small enough under Practice Directive 10/2024). If so, no auditor is needed for that year, though members holding 5% can demand one.
Appoint early: an auditor engaged after year-end may not be able to observe stock or confirm balances.
Legal basis
- Companies Act 2016, s.267(3)(a)
- Companies Act 2016, s.248(1)
- Companies Act 2016, s.264(5)
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 do the 2025 to 2027 phases for audit exemption work?Practice Directive 10/2024 raises the audit exemption limits in three steps, based on when the financial period starts: 2025, 2026, and 2027 onwards. The final limits are RM3,000,000 revenue, RM3,000,000 total assets and 30 employees, reached for periods starting from 1 January 2027.
- What must an audit-exempt company still lodge with SSM?It must lodge unaudited financial statements, the directors' report, statement by directors, statutory declaration and a director-signed exemption certificate, within 30 days of circulating the accounts to members. Accounts must follow approved accounting standards.
- How is the auditor reappointed each year in a private company?Members appoint the auditor by ordinary resolution during the 30 days before the lodgement deadline for the previous year's accounts. If no one is appointed, the sitting auditor is usually deemed reappointed, unless members object or the constitution requires actual reappointment.
- How long does a Malaysian statutory audit take?The law sets no audit duration, only the end deadlines: accounts must be circulated within six months of year-end and lodged within 30 days after. How long fieldwork takes depends on company size, record quality and how fast you respond.
- What are the deadlines to circulate and lodge financial statements for a Sdn Bhd?A private company must prepare and circulate its financial statements to members within six months of its financial year-end, then lodge them with SSM within 30 days of circulation. The first accounts may cover up to 18 months from incorporation.