Strike off a Singapore Company
Businesses go through different phases. If the demand for goods and services starts to decline rapidly and steadily and positive economic indicators consequently start to fall, the business owners may continue the business (by changing strategy) or make their toughest decision, to close the company.
There are a few ways to close a company and one of which is to strike off its name from the Registrar. If a company ceased its operations and is not carrying on business, then the director can apply for striking off. ACRA may approve the application if the Company satisfies the criteria for striking off.
What are the criteria to strike off a Company?
- The company has not commenced business since incorporation or has ceased trading.
- The company has no outstanding debts owed to the Inland Revenue Authority of Singapore (IRAS), Central Provident Fund (CPF) Board and any other government agency.
- There are no outstanding charges in the charge register (e.g. mortgages).
- The company is not involved in any legal proceedings (within or outside Singapore).
- The company is not subject to any ongoing or pending regulatory action or disciplinary proceedings.
- The company has no existing assets and liabilities as at the date of application and no contingent assets and liabilities that may arise in the future.
- All/majority of the director(s) authorise the applicant to submit the online application for striking off on behalf of the company.
Important things to note when striking off a company
- Outstanding tax credit. Ensure that there is no outstanding tax credit owing to the company before applying for striking off. When the Company is dissolved, any tax credit due to the Company will be paid over to the Insolvency and Public Trustee’s Office (IPTO).
- Outstanding liabilities. Ensure that all liabilities are settled to avoid objection during the striking off process. If ACRA receives an objection, the Company must resolve this matter within 2 months or the striking off application will lapse.
- Withdrawal of Striking Off Application. A company can apply for withdrawal of its application for striking off.
- Disqualification of a director. A director who has at least 3 of his companies struck off by ACRA, within a period of 5 years, will be disqualified from acting as director, or to take part in the management of any company for a period of 5 years commencing after the date on which the third company is struck off.
Process for striking off
- Striking off Notice. ACRA may send a striking off notice to the Company’s registered office address and the address of the company’s officers once the application is approved.
- First Gazette Notification. If there is no objection after 30 days from approval of the striking off, ACRA will publish the name of the company in the Government Gazette.
- Final Gazette Notification. If there is no objection after 60 days 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. The date that the company is struck off will be stated.After the Company has been struck off
After the Company has been struck off
A company can be restored within 6 years after the company's name has been struck off, by a Court Order. Once the Court Order has been lodged via BizFile+, the status of the company will be updated to “live” and the Company can start again its operations.
