Is my Sdn Bhd exempt from audit?
By the Lejar team · Updated
A private company is exempt from audit when it meets at least 2 of 3 criteria in the current FY and the two FYs before it: revenue, total assets and full-time employees each not above the limit. The limits are RM1 million, RM1 million and 10 for an FY starting in 2025, RM2 million, RM2 million and 20 for 2026, and RM3 million, RM3 million and 30 from 1 January 2027.
Answer the company questions, enter the start date of the FY you want to check, then the figures for that FY and the two before it.
An FY starting in 2025 or later.
| Figure | This FY | 1 FY before | 2 FYs before |
|---|---|---|---|
| Revenue (RM) | |||
| Total assets (RM) | |||
Enter the FY start date and the revenue, total assets and employees for each year to check.
A guide, not tax advice. Figures checked against the sources below on 4 November 2026. SSM changes the rules, so confirm with them before you rely on a result.
Do this in Lejar
Lejar builds the profit and loss and the balance sheet from your posted entries, so the revenue and total assets for each FY are one report away.
Questions
Which threshold applies to the past two years?
The threshold of the FY you are assessing applies to all three years. To assess an FY starting in 2026, the 2024 and 2025 figures are also tested at RM2 million and 20 employees.
Who counts as a full-time employee?
Someone paid to work at least 6 hours a day for at least 20 days a month, or at least 120 hours a month, at the end of the FY. Count local, foreign, contract and probation workers. Leave out a director or shareholder who also works full time, and family or friends who are unpaid or paid irregularly.
Which companies cannot use the exemption?
A public or listed company, a subsidiary of a public company or a company jointly controlled by one, an exempt private company that lodges the EPC certificate, and a foreign company. An associate of a public company can qualify. The criteria apply to each company, not to the group.
Can a new company be exempt?
Not in its first two FYs, unless it is dormant. A company that is not dormant needs two past FYs to qualify. A company dormant since incorporation, or dormant in the current and the immediate past FY, is exempt.
If we are exempt, do we still lodge accounts?
Yes. You lodge unaudited financial statements with the directors' report and the exemption certificate within 30 days of circulation. Members holding at least 5% of the shares or votes, or the Registrar, can still require an audit by written notice, and a licence, grant or loan that requires audited accounts still applies.
What about an FY that started in 2024 or earlier?
An FY that starts on or before 31 December 2024 falls under the old Practice Directive 3/2017. This checker does not assess it.