There are two ways to business closure in Singapore - either by winding up or striking off.
The requirements and processes involved are different for each mode of business closure. To find out more about the differences between winding up and striking off, read more.
Striking off a company in Singapore is the most common mode of business closure. However, a company must meet the stringent conditions for a strike-off. If the conditions are met, the company may apply to The Accounting and Corporate Regulatory Authority (ACRA) to strike off its name from the Register. Approval is based on ACRA’s sole discretion.
Criteria for a Strike Off
- The company has been dormant since its inception and/or has ceased operation.
- There is no outstanding debts owed to IRAS, CPF and any other goverment agencies, and there is no outstanding charges in the charge register.
- The company is not involved in any legal proceedings (local and overseas), and not subject to any regulatory or disciplinary action.
- There is no exisiting assets and liabilities as at the date of application.
- There is no contingent asset and liabilities that may arise in the future.
The process of striking off a company in Singapore can be complex and time consuming, especially in ensuring all legal obligations and requirements are met.
Another common mode of closure is via a Members’ Voluntary Winding Up. Under this arrangement, a company may decide to wind up its affairs voluntarily if the directors believe that the company will be able to pay its debts, in full, within 12 months after the commencement of the process of winding up. The company will then appoint a liquidator, or provisional liquidator, to wind up its affairs and file the necessary returns with the relevant authorities.
How We Help With Your Business Closure
At CorpServe, we provide professional advice and assistance to assess the best mode for your business closure. Be it winding up or striking off your company, we ensure that the company and its stakeholders’ interests will be protected. We have the expertise to guide you through the entire closing process, from filing procedures to the final closure of your company, giving you a peace of mind as we handle both the simple and complicated aspects of your business closure.
Our team of professionals can assist you with the following services:
Assess the most effective method of closure
Draft final set of accounts for closure
Obtain necessary tax clearance
Prepare corporate documents
Submit application to the various authorities, liaison work, etc.
Business closure may be a difficult process. However, we are here to support you every step of the way to ensure that that process is smooth sailing. If you require assistance with your business closure, please
contact us.