Subsidiary of a listed company and audit exemption
We are a small subsidiary of a Bursa-listed group. Can we skip the audit?
The situation
The audit exemption criteria under PD 10/2024 do not apply to a private company that is a subsidiary of a listed company.
The law
- Sec 267, Companies Act 2016 and SSM Practice Directive 10/2024: Registrar may exempt qualifying private companies from audit; phased thresholds from 2025
What it means for you
Even if your revenue is small, the group status removes this exemption. Plan for an audit and align your timetable with the group reporting calendar. Group status is checked at each year end, so a company sold out of a listed group may qualify in later years if it meets the limits.
What to do
- Confirm the group structure.
- Engage an approved auditor.
- Align with group reporting dates.
- Circulate and lodge as normal.
We can do this for youAnnual return, financial statements lodgement and audit exemption check: MYR 1,500