Striking off a company in Singapore
Striking off a company
A failing company may apply to the Accounting and Corporate Regulatory Authority (ACRA) to remove, strike off or deregister it from the register of companies. ACRA will approve the application if it has reasons to believe that the company is not operational or is unable to carry out any business activities.
Requirements for striking off a company
The following are some requirements to be met before a company can be struck off:
- The company must not have tax liabilities with the Inland Revenue Authority in Singapore (IRAS)
- The company must not be operational or should not be carrying out any business activities
- The company must not be involved in any court proceedings outside and inside Singapore
- The company must have no liabilities and assets
- The company must not be indebted to the government
- The shareholders of the company must unanimously agree to strike it off
Many people have a false notion that winding up and striking off is the same. But the truth is that they are not. Winding up is a formal way or method of closing a business that involves the appointment of a third party or a liquidator to manage the closure of the company such as the payment of debts and distribution and realization of the assets of a company.
Depending on the complexity of the case, it may take about 7 business days to process the application to dissolve a company.
A striking off notice will be sent to the company if ACRA is fully satisfied that it meets the requirements for striking off. Once the application has been approved, ACRA may send a striking off notice to the company’s registered office address, its officers (such as director, company secretary and shareholder) at their addresses in ACRA’s records.
If no objection is received after 30 days, ACRA will publish the name of the company in the Government Gazette, known as the First Gazette Notification. After 60 days of the First Gazette Notification, if no objection is received, ACRA will publish the name of the company in the Government Gazette again, and the name of the company will be stuck off. The date that the company is struck off will be stated. This is known as the Final Gazette Notification.
The entire process will require at least 4 months.