Closing a company in Singapore can be done in various ways, such as striking off or winding up. Generally, striking off is often a much easier and faster option that many entrepreneurs opt for. Below we will provide you with all the details regarding how to carry out the striking-off process for a company in Singapore, including the criteria and steps involved!
What is Striking-off a Singapore Company?
Striking off a company means removing it from the Accounting and Corporate Regulatory Authority (ACRA) registry, and dissolving it completely. Do keep in mind, before applying for striking off, a company needs to ensure its accounts are at zero balance, close its bank account, and last but not least - submit its final annual and tax returns. After ACRA receives the striking-off application, they will notify the company; its directors, shareholders, and the secretary regarding the application.
What are the Requirements Criteria to Strike off a Company?
As per section 344A(1) of the Companies Act, ACRA can strike off a company’s name from the register upon application by its directors or a majority of them.
ACRA may approve the striking-off if the company meets the conditions and criteria, which demonstrate that it's not operating as it should be. Below are the conditions and criteria to strike off a company based on the ACRA website:
- The company has not commenced business since incorporation or has ceased trading.
- The company has no outstanding debts owed to the Inland Revenue Authority of Singapore (IRAS), Central Provident Fund (CPF) Board and any other government agency.
- There are no outstanding charges in the charge register.
- The company is not involved in any legal proceedings (within or outside Singapore).
- The company is not subject to any ongoing or pending regulatory action or disciplinary proceedings.
- The company has no existing assets and liabilities as of the date of application and no contingent assets and liabilities that may arise in the future.
- All or the majority of the director(s) authorize the applicant to submit the online application for striking off on behalf of the company.
What is the Striking-off Application Process?
Applying for a strike off can be submitted by the company director, the company secretary, or a chosen corporate service provider. The application should be submitted to the Company Registrar and you don’t have to pay any filing fee.
After the application is submitted, ACRA may take around 5-7 days to approve the application. But remember that the process before the company is completely dissolved will take around 5-6 months.
Here is how the application process will be:
- The company director, the company secretary, or the chosen corporate service provider should apply for striking off online at BizFile+.
- The Company Registrar will send a “striking off notice” to the company - which will notify the directors, the company secretary, and the Singapore tax authorities.
- Related parties will be given 30 days to raise objections (if any)
- But if they didn't receive any objection, the company registrar will publish a Notice of Intention to Strike Off on the government gazette.
- Another 60 days will be given again to raise objections after this, and if no objections are raised - the company registrar will publish a final notice that the company has been struck off along with the final date.
- This means that the company has legally and completely dissolved.
After the Company Has Been Struck Off, What’s Next?
If in the future, you intend to build your old business back again, you’ll need to wait for six years after it’s been removed from a record to start it back again. To do this, you can request it via a Court Order, and you don’t have to pay a dime for the restoration process.
It is also important to note that a company director who has managed at least three companies that were struck off within five years, can’t take part in any managerial role or take the director role for the next five years in any company.
Get in Touch with Us!
Although striking off offers a simple and quick dissolution process, it is still advisable to seek assistance from Singapore corporate services to help you out. Wealthbridge's professional and reliable team can offer invaluable expertise and guidance throughout the striking-off process.
We can ensure all necessary steps are followed correctly, navigate any complexities that may arise, and minimize the risk of errors or complications. Get in touch with us today!