Closing A Local Company
Striking-Off Company in Singapore
What Does It Mean to Strike Off a Company?
Striking off is one of the ways of closing down a local company. It simply means deregistering the company from the Register of Companies. The eventual outcome is that the company will be dissolved.
If a company has stopped operating or trading, or if its objectives—that is, the reason it was formed—have ceased to exist, one may want to strike off a company’s name from the register. Please not that if the company’s officers and members are still liable for any remaining debts, the strike off does not release them from those obligations.
What Criteria Must Be Satisfied?
The Registrar can allow the striking off of the company’s name on such grounds and subject to such conditions as may be prescribed.
Firstly, the company must have stopped business activities or not have commenced activities from the date of incorporation. There should be (1) No current or contingent assets or liabilities, (2) No outstanding tax liabilities with the Inland Revenue Authorities, (3) No debts owed to any Government authorities, (4) No ongoing involvement in any court proceedings, (5) No outstanding charges in the company’s charge register. Lastly, written consent from the majority of the shareholders must be obtained and finalised accounts drawn up till the date of cessation must be attached.
If the company was dormant since incorporation, the company must submit a letter stating that: No business transactions took place since the date of incorporation and No bank account was opened, or any opened bank account is now closed.
Frequently Asked Questions
If approved ACRA will send a striking off notice to:
- Company registered office
- Company directors and company secretary at their residential address
- IRAS
If no objection after 1 month, ACRA will publish Company name in the Government Gazette. This is referred to as the First Gazette Notification.
If there is no objection during the 3 months after the First Gazette Notification, ACRA will publish the name in the Government Gazette and the company name will be struck off. This is referred to as the Final Gazette Notification.
The entire process will take at least 5 months.
Any interested person can lodge an objection, for example a debtor.
The company is given 2 months to resolve the matter. If the company is unable to resolve the matter within 2 months, the striking off application will lapse and the company will revert to live status. The company can only submit a new application after the objection has been cleared.
Yes, a withdrawal is possible if there are clear reasons for the withdrawal. It must be lodged at least 5 working days before the Final Gazette Notice.
Contact us to strike-off your application as soon as possible to avoid any penalty charges or having to go through the process of strike-off company in Singapore.
A company that has been struck off can be restored within six years via a Court Order. The order must be lodged with ACRA , and then the company’s status will be changed to “Live”.
However, take note that a company director who has managed at least three companies that were struck off by ACRA within five years will be disqualified from the director role or take part in the management of any company for the next five years after the third company was struck off.
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