Because of some reasons, your Singapore company is no longer needed to do business. Hence, you need to close down the company, which is called striking off. To strike the Singapore company’s name off the Company Register is not difficulty, you is only required to submit a form to ACRA (Accounting and Corporate Regulation Authority) in pursuant to section 344 of the Singapore Companies Act.
What are differences between striking off and winding up?
You may be confused between striking off and winding up, because they are all considered as ways of closing down the Singapore company. However, winding up is a more formal process that involves the appointment of liquidator to manage the company’s closure, while striking off is suitable for companies which is not in active business or does not have any assets or liabilities.
It means that if the company is insolvent, it is required to wind up instead of strike off. In fact, a process of striking off the company is much faster than winding up.
Requirements for striking off companies
Companies will be able to strike off when:
- Do not commerce any business activities from the date of incorporation, or implement to cease all of business activities
- Do not have any outstanding/ pending tax liabilities with the Inland Revenue Authorities (IRAS)
- Do not have any current or contingent assets or liabilities
- Submit completely all of annual reports to IRAS and ACRA
- Do not be involved in any court proceedings both inside and outside Singapore
- Cancelling GST registration if the company registered GST, and there are no outstanding GST matters
- Close of Singapore corporate bank account
- The company director(s) must obtain the written consent of the majority of the shareholders regarding the strike off
The process of striking off with ACRA
- Submit an application form for striking off the Singapore company to ACRA
- The application is approved
- ACRA will send a striking off letter to the registered address of the company in Singapore
- The company’s name will be published in the Government Gazette which is the First Gazette Notification if there is no objection
- If there is no objection within the next 2 months from the First Gazette Notification, ACRA will publish the name of the company in the Government Gazette again and the name of the company will be struck off the register. This is considered as the Final Gazette Notification.
- The striking off process will last approximately from 3 to 4 months.
- If ACRA receives any objection against a striking off application, ACRA will give the company 2 months to resolve the matter. In cases, the company cannot resolve this matter, the striking off application will lapse.
The striking off process can only implement smoothly when you are in compliance with all the legal and statutory regulations of ACRA. Hence, to save your time for the striking off process and to give you the best advice, ACE Global Accountant is be willing to assist you in this matter.