Published November 9, 2016 · Updated October 8, 2026
A late annual return is an offence under the Companies Act 2016, with fines up to RM50,000. Why do some providers in Malaysia still advertise company secretarial services for almost nothing?
In this article, we discuss how corporate secretarial pricing works in Malaysia. We explain what a sensible retainer covers and excludes, the questions to ask, and the red flags in low quotations.
What Do Corporate Secretarial Fees in Malaysia Actually Cover?
A fair retainer pays for the statutory work every Sendirian Berhad must complete each year, plus the professional judgement that keeps it on time.
Every company in Malaysia must appoint at least one secretary within thirty days of incorporation. The secretary must be a natural person residing in Malaysia. They must be members of a professional body set out in the Fourth Schedule or be licensed by the Commission, and must be registered with the Registrar before acting. The Companies Commission of Malaysia (SSM) administers these licences and enforces the Companies Act 2016 that creates the obligations. Recognised professionals include members of the Malaysian Institute of Chartered Secretaries and Administrators (MAICSA). Corporate secretarial fees in Malaysia are therefore paying for regulated, accountable work, not an optional administrative extra.
A sound retainer typically spans three areas of responsibility:
1. Statutory registers, minute books and resolutions
Your secretary maintains the statutory records a company relies on. This includes:
- Registers of members, directors and directors' interests
- Minutes of meetings
- Standard resolutions for opening bank accounts, appointing officers or approving routine transactions
Where these registers were never properly kept, reconstruction is slow and costly.
2. Annual return lodgement with SSM
Section 68 of the Companies Act 2016 requires a company to lodge an annual return for each calendar year after the year of incorporation, no later than thirty days from the anniversary of its incorporation. The retainer should cover preparation, checking and submission of this filing, together with any follow-up queries raised by SSM.
3. A compliance calendar with reminders
Good providers track changes of officers and registered office, notify SSM within the statutory window, which is generally fourteen days, and remind you before deadlines lapse rather than after. They also flag events that trigger extra filings, such as share transfers or a change of financial year end.
What Is Typically Excluded from a Low Company Secretary Fee in Malaysia?
Most budget quotations cover only the routine annual minimum, then invoice every out-of-the-ordinary item separately.
Before comparing quotes, ask each provider for a written scope. Common exclusions include:
- Disbursements such as SSM lodgement fees and stamp duty on share transfers
- Resolutions beyond a stated number
- Share allotments and transfers
- Changes of company name or financial year end
- End-of-life work such as striking off
Some packages also exclude the registered office address. It is then billed monthly, quietly lifting the annual cost well above the headline figure. The table below summarises what retainers in Malaysia normally include and charge separately.
Typical Inclusions and Exclusions in a Malaysia Secretarial Retainer
| Fee item | Usually included in annual retainer | Commonly charged as extras or disbursements |
|---|---|---|
| Statutory registers and minute books | Included | Reconstruction of lost or incomplete registers |
| Annual return lodgement (Section 68) | Included | SSM lodgement fees may be billed separately |
| Standard board and shareholder resolutions | One to a set number included | Additional resolutions billed per item |
| Registered office address | Sometimes included | Often a separate monthly fee |
| Changes of directors or secretary | Basic notification often included | Nominee or non-routine arrangements extra |
| Share transfers and allotments | Usually excluded | Stamp duty and per-transaction fees apply |
| Striking off, winding up, name change | Excluded | Quoted as project work |
What Can a Very Low Secretarial Quotation Mean?
Very low pricing usually reflects a stripped-back scope, a high-volume operating model, or charges that surface only after you have signed up.
A low number on a proposal is rarely a coincidence. It is usually the product of one of three business models. Each carries trade-offs you should weigh before engaging:
1. A deliberately narrow scope
The advertised fee may cover little more than the annual return, with every resolution, letter or call invoiced later. The quote looks cheap because the work it promises is minimal.
2. High-volume, templated operations
Some practices assign each secretary a very large portfolio of companies. Templated filing keeps costs down, but access to a human who knows your company becomes scarce precisely when you need advice.
3. Unbundled pricing that recovers margin later
A low base retainer paired with a long schedule of add-ons can cost more over a full year than a higher all-in fee. Always request the add-on schedule and model a realistic year before deciding.
Which Compliance Deadlines Does a Reliable Retainer Protect You From?
A competent provider keeps you ahead of overlapping filing deadlines at SSM and the Inland Revenue Board (LHDN) throughout the year.
The annual return under Section 68 is only the start. For tax, an existing company must submit its estimate of tax payable in Malaysia on Form e-CP204. It must do so at least thirty days before the basis period begins. A newly incorporated company with a first basis period of at least six months must submit e-CP204 within three months from the date operations commence.
The estimated tax is then paid in monthly instalments by the fifteenth of each month. For existing companies, they start in the second month of the basis period. For new companies, they start in the sixth month. LHDN allows revisions via e-CP204A in the sixth, ninth or eleventh month of the basis period. The corporate income tax return, Form e-C, is due within seven months of the financial year end. Missing any of these triggers penalty exposure that no cheap retainer will absorb for you.
Key Annual Compliance Deadlines for a Malaysia Sdn Bhd
| Obligation | Deadline | Authority |
|---|---|---|
| Annual return (Section 68) | For each calendar year after the year of incorporation, within 30 days of the anniversary of incorporation | SSM |
| Estimate of tax payable, existing company (e-CP204) | At least 30 days before the basis period begins | LHDN |
| Estimate of tax payable, new company (e-CP204) | Within 3 months of commencing operations where the first basis period is at least 6 months | LHDN |
| Monthly tax instalments (CP207) | By the 15th of each month, from the 2nd (or 6th for new companies) month of the basis period | LHDN |
| Revision of estimate (e-CP204A) | In the 6th, 9th or 11th month of the basis period | LHDN |
| Corporate income tax return (e-C) | Within 7 months of the financial year end | LHDN |
What Questions Should You Ask Before Engaging a Provider?
A short, structured conversation before signing will expose most pricing and service gaps.
Do not rely on the quotation alone. The following questions clarify scope, capacity and accountability, and a professional provider will answer them without hesitation.
Questions to Ask a Secretarial Provider Before You Engage
| Question | Why it matters |
|---|---|
| How many companies does each named secretary handle? | Reveals capacity and realistic response times |
| Is the registered office address included, and for how long? | A common unbundled cost that inflates the annual total |
| How many resolutions are included each year? | Excess resolutions are the most frequent add-on charge |
| Are SSM fees and stamp duty included or billed later? | Determines the true annual cost of the retainer |
| What happens if a filing is late because of your error? | Tests accountability and remedy commitments |
| Will I have one named contact throughout? | Continuity and accountability beat ticket queues |
| What notice is needed to terminate and collect our records? | Prevents disputes over statutory registers when switching |
Which Red Flags Should Warn You Off a Low Quotation?
A quotation far below the prevailing market rate, offered without scope details, deserves close scrutiny before you sign anything.
In practice, we help new clients untangle problems created by cut-price providers every year. Registers were never properly kept, lodgements nobody can explain, and penalties arrived because no one was watching the calendar. The patterns below appear repeatedly.
Red Flags in Low Company Secretary Fee Quotations
| Red flag | What it may signal |
|---|---|
| No named secretary, licence number or qualification shared | Unlicensed practice or a de-registered individual acting as secretary |
| Quotation far below market norms with no scope table | Loss-leader pricing recovered through add-ons |
| No written engagement letter or scope | Weak recourse if deadlines are missed |
| Registered office is a bare mail drop | Possible problems with SSM correspondence and bank verification |
| No commitment on where statutory registers are held | Difficult handover and hostage risk when you switch providers |
| Sudden unavailability near the annual return deadline | An overloaded, penalty-prone operation |
How Do You Compare Secretarial Providers Fairly in Malaysia?
Compare total first-year and second-year cost, not the headline figure.
Model a realistic year: two or three resolutions, one officer change, the annual return and all disbursements. Ask each provider to quote that same workload so the numbers are genuinely comparable. Look beyond price at continuity, meaning one named secretary, a registered office that satisfies SSM requirements, and clean handover terms if you ever leave.
If your structure involves a foreign shareholder, check whether the provider can also support a nominee director in Malaysia. Also ask whether accounting support such as the compilation of unaudited financial statements is available from the same team. Bundling reduces hand-off errors, especially where secretarial, accounting and tax records must agree, for example when a change of financial year end shifts your CP204 deadlines.
Conclusion
Low corporate secretarial fees are not automatically a trap, but a quotation that seems too good to be true usually reflects a scope that protects you from almost nothing. Judge every offer on what it includes, who is named as your secretary, and how deadlines at SSM and LHDN are tracked. A few hundred ringgit saved on the retainer is poor consolation against a fine of up to RM50,000 and the cost of rebuilding statutory registers from scratch.
At 3E Accounting Malaysia, we believe transparent secretarial pricing is part of compliance itself. Our packages set out inclusions, disbursements and deadlines in writing, and the first year of secretarial service is included in our company setup packages. If you are weighing quotations or worried about filings already due, speak with our team for a clear, itemised proposal.
Get a Clear, Itemised Secretarial Quotation
Send us your company details and we will return a written scope and fee schedule with no hidden add-ons, so you can compare providers on equal terms.
Frequently Asked Questions
No. Low fees are acceptable when the scope is transparent, a named licensed secretary is accountable, and inclusions and exclusions are set out in writing. The problem is not the price itself but the hidden gaps behind it.
Typically the maintenance of statutory registers and minute books, standard resolutions, preparation and lodgement of the annual return under Section 68, compliance reminders, and notifications of changes in directors, secretary or registered office.
Usually not. These are disbursements that most providers bill separately, including SSM lodgement fees and stamp duty on share transfers. Always request a written schedule of disbursements before engaging.
Failing to lodge the annual return within thirty days of the anniversary of incorporation is an offence under the Companies Act 2016, exposing the company and its officers to a fine of up to RM50,000, and persistent non-compliance can lead to the company being struck off.
Yes. Your existing provider must hand over the statutory registers and documents, and the new secretary lodges the change of secretary notification with SSM. Check your engagement letter for termination notice periods and record handover obligations before switching.
Abigail Yu
Director
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
