If your company is registered under the Companies Commission of Malaysia (SSM), it’s crucial to display your registered name and number on all digital channels to avoid fines.
It’s common practice for businesses to prominently display their registered company name on physical premises, billboards, contracts, and websites. However, an increasing number of small to medium-sized businesses have been hit with fines of up to RM 50,000 for failing to disclose their business information.
Many businesses are unaware that displaying their business details on social media is a legal requirement. This lack of awareness has resulted in significant fines without warning from SSM, with penalties reaching up to RM 50,000 following recent audits.
According to Section 30 of the Malaysian Companies Act 2016 (Act 777), businesses are legally obligated to publish their registered name in various instances, including any location where the business operates, all official documents and correspondence, websites, and financial documentation.
While Section 30(2)(b) does not explicitly mention websites, a new rule enacted under P.U. (A) 140/2020 – Registration of Businesses (Amendment) (No.2) Rules 2020 now requires businesses to display their registered name and registration number “on the business websites, any social media platform, or online marketplace.”
Failure to comply with these provisions is considered an offence, and SSM may impose fines of up to RM 50,000, imprisonment for up to 3 years, or both. It’s important to note that these fines may be imposed on both the company and its officers, including partners, officers, or directors.
This is your reminder to ensure that your business details are clearly displayed and visible on your social media platforms to avoid liability and penalties. Simply add your full business name and registration number in brackets to your social media bio, like we did:
Don’t wait until it’s too late. Update your social media pages today!
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Disclaimer: This is not legal advice, all information is for educational purposes. This information is only updated as per the date published above, please check with SSM on the latest information. Please consult a licensed practitioner if you are experiencing a legal dispute.