How to Close a Company in Singapore: Process, and Requirements

We understand that closing a company in Singapore is a significant decision that involves careful planning and adherence to legal procedures. Whether you're considering striking off or winding up your business, our comprehensive company cessation services in Singapore are designed to guide you through each step, ensuring compliance with all regulatory requirements.

Different Methods to Closing a Company in Singapore

There are two primary methods to close down a company in Singapore i.e. Striking Off and Winding Up. The appropriate method depends on your company's financial status and specific circumstances.

Striking Off

Striking off is a process where the company's name is removed from the Accounting and Corporate Regulatory Authority (ACRA) register. This method is suitable for companies that are solvent and have ceased all business activities.

1. Ensure All Obligations Are Settled: Confirm that all debts, taxes, and liabilities are cleared. Any unsettled matters, including outstanding ACRA or IRAS filings, must be resolved before submitting the strike-off application.
2. Obtain Written Consent: Secure consent from the majority of directors and shareholders (if applicable) for the strike-off.
3. Submit Application to ACRA: Complete and submit the “Application for Striking Off” to ACRA. This application should confirm the cessation of business activities and include all necessary documentation, such as resolutions for striking off.
4. Notification Period: After submission, ACRA will publish a notice of intent to strike off the company. This notice period typically lasts three months, allowing any objections to be raised by creditors or other stakeholders.
5. Final Striking Off by ACRA: If no objections are received, ACRA will proceed with the strike-off, removing the company from its register and finalizing its closure. ACRA will issue an official letter confirming the company’s strike-off status.

The Entire Process Typically Takes About Four Months

Winding Up

Winding up is the process of liquidating a company's assets to pay off debts before dissolving the company. This method is applicable for both solvent and insolvent companies.

1. Appointment of a Liquidator: A licensed liquidator is appointed to oversee the liquidation process. This liquidator will be responsible for selling company assets and distributing proceeds to settle debts.
2. Complete Asset Liquidation: The liquidator sells off all company assets. The proceeds are used to pay off any outstanding debts, including amounts owed to creditors and tax authorities.
3. Settlement of Outstanding Liabilities: Once assets are liquidated, the liquidator distributes the funds according to a priority system, paying creditors and, if applicable, returning remaining funds to shareholders.
4. Final Meeting with Stakeholders: The liquidator holds a final meeting to present a detailed account of the liquidation. This meeting reviews all actions taken to settle debts and close the company.
5. Submission of Final Report to ACRA and IRAS: The liquidator submits the final report to ACRA, IRAS, and other relevant authorities, detailing the winding-up activities. This report marks the formal end of the liquidation process.
6. Company Dissolution: After the final report is reviewed and accepted by ACRA, the company is officially dissolved and removed from the register.

Duration of the Winding-Up Process Based on the Complexity of the Company's Affairs

Key Considerations Before Closing a Company in Singapore

• Tax Obligations: Ensure all tax returns are filed, and any outstanding taxes are paid.
• Employee Matters: Settle all employee salaries, benefits, and entitlements.
• Contractual Obligations: Address any ongoing contracts or leases.
• Asset Disposal: Properly dispose of or transfer company assets.
• Notification to Stakeholders: Inform all relevant parties, including customers, suppliers, and banks.

Also, Check "Company Registration in Singapore"

How ASC Group Can Assist in Closing a Company in Singapore?

Navigating the complexities of closing a company requires meticulous attention to detail and compliance with legal procedures. At ASC Group, we offer:

• Expert Consultation: Assess your company's situation to recommend the most suitable closure method.
• Documentation Preparation: Assist in preparing and filing all necessary documents with ACRA and IRAS.
• Liaison with Authorities: Act as your representative in communications with regulatory bodies.
• Asset Liquidation Support: Provide guidance on the proper disposal or transfer of company assets.
• Stakeholder Communication: Help in notifying all relevant stakeholders about the company's closure.

Our goal is to ensure a smooth and compliant closure process, allowing you to focus on your future endeavours.

Why ASC?

If you're considering closing your company in Singapore, contact ASC Group today for a personalized consultation. Our experienced professionals are here to guide you through every step of the process, ensuring compliance and peace of mind.