How To Shut Down A Company In Singapore
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There are many reasons why businesses just don’t work out. If you’ve reached that difficult point with yours, we’re here to help you navigate the process of closing a company so you can move on quickly and hassle-free.
There are two main ways to do this: you can either wind up or strike off the company. If the company is insolvent due to being unable to pay its debt, the company must wind up. This is a more formal and labor-intensive process and will require the appointment of a liquidator. In the majority of cases, however, a company will be able to apply to be struck off, which is a relatively straightforward process.
To successfully strike off the company, you will need to meet the following criteria:
The company has not commenced business since incorporation or has ceased trading.
The company’s accounts should have no assets and liabilities.
If there are assets and liabilities, the assets must be disposed of or written off and that the liabilities must be settled or waived. This is something we will be able to provide assistance on.
The directors have obtained the written consent of the majority of shareholders
The company has submitted the latest unaudited balance sheet.
The company has no outstanding debts with any government agency (IRAS, CPF board, etc.).
There are no outstanding charges in the charge register. This register is essentially something that gives security to an investor. For example, the terms of the investment could include a charge over the company’s inventory. If a fashion brand went bust, the investor would be able to get the rights to the proceeds of all the remaining product.
The company is not involved in any court proceedings (within or outside Singapore).
Finalising accounts and preparing the necessary documents for ACRA (the Accounting and Corporate Regulatory Authority) can be intimidating, but we can take you through each step. Here’s a breakdown of the timeline, so you know what to expect:
ACRA will usually approve the strike off immediately; however, it can take up to 14 days.
Once approved, the striking off notice will be sent to the company’s registered address, its directors, company secretary, and shareholders at their residential address and IRAS and will be valid for one month to allow objections.
Subsequently, a notification will appear in the government gazette. It is open for two months for any interested person to raise an objection.
You will then receive a final notice from ACRA confirming the company has been struck off. The whole process will usually take 4-6 months from start to finish.
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If you need any advice on the process, please do get in touch with our team of experts at [email protected].