If your company is registered under the Companies Commission of Malaysia, commonly known as SSM, it is important to display your registered name and number on digital channels to avoid compliance issues.
It is 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 RM50,000 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 RM50,000 following audits.
According to Section 30 of the Malaysian Companies Act 2016, businesses are legally obligated to publish their registered name in various instances, including any location where the business operates, official documents and correspondence, websites, and financial documentation.
While Section 30(2)(b) does not explicitly mention websites, a rule enacted under P.U. (A) 140/2020, the Registration of Businesses (Amendment) (No. 2) Rules 2020, requires businesses to display their registered name and registration number on business websites, social media platforms, or online marketplaces.
Failure to comply with these provisions is considered an offence, and SSM may impose fines of up to RM50,000, imprisonment for up to three years, or both. 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. A simple example is adding your full business name and registration number in brackets to your social media bio.
Do not wait until it is too late. Review and update your social media pages if needed.
Want to focus on your business without the headache of content and social media maintenance? Our social media management team can help keep your channels organised while you stay focused on the business.
Disclaimer: This article is not legal advice. It is provided for educational purposes and reflected the information available on the original publication date. Please check directly with SSM or consult a licensed practitioner for current legal advice.