There are two ways to close down a company -- either by winding up or striking off. The requirements and process are different for each mode of closure. Read more.
Striking off is the most common mode of 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 at ACRA’s sole discretion.
The process of striking off can be complex and time consuming, especially in ensuring all legal obligations and requirements are met.
Another common mode of closure is to vide 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 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.