Striking A Company In Singapore: What Entrepreneurs Need To Know Before Closing Business

Closed Company

Setting up a company involves risks. At one point, a business owner may decide to end business permanently. In such case, a company secretarial service can help businesses in the painstaking process of shutting down the company.

Applying For A Strike Off

Signing Documents

Closing a company is never an easy option for an entrepreneur. But sometimes, it is the most logical thing to do.

A business that’s no longer profitable is best struck off the register. Dormant companies, for example, may no longer be operating, but they are still required to file annual tax returns. Failure to comply with the requirements of the Inland Revenue Authority of Singapore (IRAS) could lead to penalties.

Before applying for a strike off at the Accounting and Corporate Regulatory Authority (ACRA), a company must meet the following requirements:

  • No current business activity or has not started operations since its incorporation
  • Have no outstanding tax liabilities or debts to any government agency
  • Have no assets and liabilities (if there are assets and liabilities, the company must submit proof that the assets have been disposed and the liabilities settled)
  • No involvement in any court proceedings in Singapore or abroad
  • Submit updated balance sheets and company accounts
  • Have written consent from its shareholders

How A Company Secretarial Service Can Help?

Company Secretary Task

If a company meets all the requirements for strike off, the company director or company secretary must submit an application to the Accounting and Corporate Regulatory Authority (ACRA).

In the absence of an in-house company secretary, a business may opt to hire a secretary service to take care of the necessary requirements prior to the submission of strike off application.

Processing of application takes about 7 working days, depending on the complexity of the case and whether the documentation is complete. This is why it is important to hire a professional secretary service to take care of all the strike off requirements.

Corporate secretary services include submission of the required documents on the company’s behalf. The company secretary will ensure that all account statements and other documents relevant to the application for strike off are complete and updated.

Once the company meets all the criteria for strike off, ACRA will then send a strike off notice to the company’s registered address, as well as to the residential addresses of the company officers and to pertinent Singapore government offices.

If there are no objections to the strike off, ACRA will release a final notification that the company has been taken off the register. If there are objections, the protesting party may file its objections through the BizFile.

Within two months, the company filing for strike off must be able to resolve the objection. Otherwise, the strike off application will lapse, and the company will have to submit a new application. It takes about 5-6 months to complete a strike off process.

At The Hands Of Professionals

While closing a company is not an easy task, the transition could be a smooth one as long as procedures are followed. Hiring a secretary service to assist in the changeover can help make the process a less tedious one.

With a professional secretarial service, business owners can rest assured that everything is organized and all information required will be complete.

Corporate Services Singapore offers company secretarial businesses to local companies and multinational corporations. In addition to company secretarial services, we also offer accounting and taxation services to companies that are applying for a strike off. Get in touch with us today so we can assist you in the strike off procedures.

Posted in Company Secretarial Service.