Company De-Registration / Strike-Off
When you decide to cease business operations, it is often advisable to close down the company if you know for certain that you will not be doing any business with the company in the near future. In most cases, if there are no outstanding liabilities or creditors at the end of the business, what you can do is engage a service provider to assist in the de-registration or strike-off of the Company’s name from the registrar. If there are debts which you are unable to pay off at the end of the business, a winding up process is required.
Striking off a Company typically is a much less lengthy and much less complicated process compared to a winding up process. The entire strike off process typically takes approximately less than 6 months to be finalized.
If you would like to maintain the Company without doing any business, please note that you will still need to fulfill the statutory obligations of filing your Annual Return to ACRA every year, regardless of whether the Company is active or dormant. You may also inform IRAS of your business cessation so that you would not need to file for your company taxes for periods where the Company is dormant, otherwise, you will still be obliged to file for the taxes every year.
For Company that is dormant since incorporation date and is less than 18 months old
For Company that is dormant since incorporation date and is more than 18 months old
For Active Companies that are ceasing businesses
Helping Out With the Striking Off of a Company
ContactOne Professional Services is able to assist you in the striking off of your Company should you decide to close down your Company. The process typically involves our assistance in finding out your compliance commitments as well as helping you ascertain if all the assets and liabilities of the Company has been properly disposed prior to the strike off.
In order to satisfactorily strike off a Company, there are a few requirements to be met before the actual strike-off application:
- The directors and owners of the Company consent to the strike-off.
- All assets and liabilities of the Company are already disposed.
- The Company has no contingent liabilities or outstanding commitments (example: tenancy commitments, outstanding contracts to fulfill)
- The company bank accounts are all closed.
- The accounts up to the date of business cessation are done up
- Tax computation and submissions are made to IRAS
- Settlement of outstanding and current taxes owed to IRAS.
The Entire Strike Off Cycle
The entire strike off cycle, including finalization of company last accounts, tax submission, strike off application and strike off confirmation, varies for each company. Some of the factors affecting the duration of how soon you can close down your company includes:
- Age of the Company
- ACRA return status of the Company
- Company tax return status of the Company
- Financial health of the Company
- Settlement of outstanding commitments with external creditors, landlords, etc…