Guide to Singapore Company Strike Off

Striking off a company is one of the most cost-effective ways to close a business in Singapore. It is suitable for companies that have ceased operations, fulfilled all obligations, and no longer wish to maintain their registration. Understanding the strike-off process and its requirements ensures a smooth and hassle-free closure. This guide provides a comprehensive overview of striking off a company in Singapore, its benefits, and the steps involved.

What is a Company Strike Off?

A company strike off is the process of removing a defunct or inactive company from the Accounting and Corporate Regulatory Authority (ACRA) register. Once struck off, the company ceases to exist as a legal entity.

This method is typically used by solvent companies that meet all regulatory requirements and wish to close their operations permanently.

Benefits of Striking Off a Company

1. Cost-Effective Closure
   • Lower costs compared to other methods like liquidation.
   • Ideal for companies with no outstanding liabilities.
2. Simplified Process
   • Fewer compliance requirements compared to liquidation.
   • Straightforward application and approval process.
3. Finality
   • Once the company is struck off, it is officially dissolved, and no further obligations are required.

Eligibility Criteria for Company Strike Off

To apply for a company strike off, the following conditions must be met:

• The company has ceased all business activities.
• The company is solvent and able to pay its debts.
• There are no outstanding debts or liabilities , including taxes and employee claims.
• The company has no ongoing legal proceedings.
• The company has canceled all bank accounts.
• No outstanding Annual Returns or other filings are due with ACRA.
• All shareholders agree to the strike-off.

Steps to Strike Off a Company in Singapore

1. Prepare Required Documentation

Before applying for a strike-off, ensure the following are completed:

• Settle all outstanding debts and liabilities.
• File all required tax returns with the Inland Revenue Authority of Singapore (IRAS).
• Cancel all bank accounts and licenses.
• Obtain written consent from all shareholders.

2. File the Strike-Off Application

Submit the strike-off application via ACRA's BizFile+ platform. The application must include:

• A declaration that the company meets all strike-off conditions.
• Supporting documents such as final tax clearance from IRAS.

3. Review by ACRA

ACRA will review the application and may request additional information. If all conditions are met, ACRA will:

• Publish a Notice of Striking Off in the Government Gazette.
• Notify the company's officers and shareholders.

4. Waiting Period

There is a 3-month waiting period during which objections to the strike-off can be raised. Common reasons for objections include:

• Outstanding liabilities.
• Pending legal proceedings.

If no objections are raised, the company will be officially struck off at the end of the waiting period.

5. Receive Final Notification

Once the company is struck off, ACRA will issue a Notice of Final Striking Off to confirm the dissolution of the company.

Key Considerations

1. Tax Obligations

Ensure that all tax filings are completed and clearance is obtained from IRAS. Any outstanding tax issues can delay the strike-off process.

2. Employee Claims

Address any outstanding salary or benefits owed to employees before applying for a strike-off.

3. Resumption of Business

If you wish to resume operations, you must apply for reinstatement within 6 years of the strike-off.

Common Challenges in the Strike-Off Process

1. Outstanding Debts:
   • Unsettled debts can lead to objections from creditors or authorities.
2. Incomplete Filings:
   • Missing financial statements or tax returns can delay the process.
3. Objections from Stakeholders:
   • Ensure all stakeholders, including shareholders and creditors, are informed and agree to the strike-off.

Why Engage Professional Services?

Striking off a company involves strict compliance with legal and regulatory requirements. Engaging a professional corporate advisory firm like Apexia Corporate Advisory ensures:

• Accurate preparation and submission of strike-off applications.
• Timely resolution of tax and compliance issues.
• Assistance with finalizing accounts and settling liabilities.
• Peace of mind knowing the process is handled professionally.

Conclusion

Striking off a company is a cost-effective and efficient way to close a defunct business in Singapore. By following the proper steps and ensuring compliance, you can achieve a smooth and successful closure. Need help with striking off your company? Apexia Corporate Advisory is here to guide you through the process. Contact us today for expert assistance and tailored solutions!