There are two ways of closing a company in Singapore either by way of striking off or winding up (also known as deregistration). The requirements and procedures are different for each method of closure.
Striking off is the most common method of closing a company. A company director or company secretary may apply to the Accounting and Corporate Regulatory Authority (ACRA) to strike off the name of the company from the register. Application will be approved if there is reasonable ground to believe that the company is not carrying on business and meets the following criteria for striking off:
The entire process of striking off will take at least 4 months. A struck off company can be restored within 6 years from the date of striking off by a court order.
Another common mode of closing a company is by way of members’ voluntary winding up. The company may choose to wind up the company if the directors believe that the company will be able to pay its debt in full within 12 months after the commencement of the winding up.Where a company is unable to pay its debts and wishes to be wound up, it may choose to do so by way of a creditors’ voluntary winding up. In both instances, a liquidator will need to be appointed to wind up its affairs and file the necessary returns with the relevant authorities.
Striking off a company is a simpler and straightforward process relative to the procedures of winding up a company. Should you require any further information or advice, please do not hesitate to contact us.