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Singapore Company Liquidation (Strike Off) Guide

Strike-off process for Singapore Company has been made simpler and easier to understand for you with our Singapore company liquidation guide. ACRA will decide if the applying company has met all the parameters for a successful strike-off, or not.

There comes a time when the company or the business owners decide to wind it up. In such a situation, there are certain legal requirements to complete before the task is accomplished.

Striking Off a Company in Singapore

For this purpose, the company needs to apply to the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. This government agency rules all the companies registered in Singapore. ACRA may approve and strike the company’s name off its register based on the provisions in section 344 of the Singapore Companies Act. The company must meet certain criteria and conditions for the approval of its application.

Requirements for Singapore Company Liquidation

  1. Business Activities: The Company must not have initiated its business operations since the day of registration or it must have completely stopped its business activities before initiating the liquidation process.
  2. Tax Liabilities: It must have cleared all of its tax liabilities with the IRAS.
  3. Debt: It must not be indebted to any government agency or department in Singapore.
  4. Penalties / Charges: It must have cleared all of its outstanding penalties/charges in the company’s charge register.
  5. Legal Issues: It must have settled all its issues related to court proceedings inside or outside Singapore.
  6. Shareholders’ Approval: The majority of the shareholders must be in support of the proposed liquidation of the company.
  7. Assets and Liabilities: It must have disposed off its assets and taken care of all of its liabilities.
  8. Audit Reports: A Company Limited by Guarantee must have filed its last bunch of audit reports before initiating the strike off process.

Course of action for Winding up a Company in Singapore

Application for Liquidation: On receipt of a liquidation application from a company, ACRA starts the process to strike it off of its register. Generally, it takes around 7 days to accomplish it. However, it may take time if there are any complications.

Striking Off Notice: If the company fulfills all the criteria required by ACRA for the liquidation of a company, then it may decide to deliver a ‘Striking Off Notice’ to the company’s registered office. The directors and the company secretary will also receive it at their respective residential addresses. The notice is also delivered to the IRAS.

Objection to Liquidation: An individual can lodge his or her objection regarding the striking off of a company to the authorities within a month. It takes about 4 months for the issuing of the final notification. So in all, it takes about 5 – 6 months to get a company liquidated and off the ACRA’s register.

The liquidation of a Singapore company is not an easy process. It is advisable to take help of professionals to take it to its final solution. These experts assist their clients in successfully accomplishing the liquidation process. They give advice on the legal requirements and statutory regulations to be followed in this situation and the best way out of a predicament.

Please feel free to contact us on +65 6536 0036 or drop in an email at info@accountingservice.com.sg