What does it mean to strike off local company in Singapore?
A strike off means to officially remove the company from the Registrar of Companies, known as Accounting and Corporate Regulatory Authority (ACRA). To strike off local company in Singapore is commonly done when shareholders and directors wish to pursue a cost-effective means of closing business in Singapore.
How do you strike off company in Singapore?
Before a company can initiate the strike-off process and proceed with submitting the strike-off application to ACRA, it needs to meet the several criteria mentioned below:
- The company must have ceased its business operations or not initiated any activities
- There should be no existing or potential assets or liabilities associated with the company
- There must be no pending tax issues and obligations with the Inland Revenue Authority of Singapore.
- The company has fulfilled the requirement of submitting all pending Income Tax Returns.
- The GST registration has been officially cancelled, and there are no remaining GST matters that require attention.
- The company does not have any outstanding debts owed to Government authorities (ie. CPF, MOM and etc).
- It is not currently involved in any court proceedings.
- There are no pending charges in the company’s charge register.
- Prior to striking off, written consent must be obtained from the majority of the shareholders.
- The final zeroized accounts, prepared up until the date of business cessation, should be attached as part of the application process.
You may submit the application electronically through the Accounting and Corporate Regulatory Authority (ACRA).
Get a trusted corporate secretary to facilitate strike off process
To ensure compliance with all legal requirements, we highly recommend to engage a professional service provider like a corporate secretary or Registered Filing Agent (RFA). They will assist you throughout the ACRA striking off process. Once all the necessary documents are in place, your company secretary or RFA will file the striking off application with ACRA for review and processing.
Upon the application for striking off is approved, ACRA may issue a notice to the following recipients:
- The registered office of the company.
- The residential addresses of the company directors and company secretary.
ACRA, the Accounting and Corporate Regulatory Authority, follows a specific process for the company strike off. Within one month, ACRA will publish the company’s name in the Government Gazette. If no objections are raised. This is known as the First Gazette Notification.
Meanwhile, after three months from the First Gazette Notification, if there are no objections, ACRA will publish the company’s name in the Government Gazette once again, resulting in the company being struck off. This stage is referred to as the Final Gazette Notification. The entire process usually takes at least five months.
Who can object to the application of striking off?
Any person with an interest, such as creditors, government agencies, or employees, can file an objection to the striking off application.
Moreover, upon receiving an objection, ACRA will notify the company through email. The company will have a period of two months to address and resolve the matter. If the company fails to resolve the objection within this timeframe, the striking off application will be considered void. The company will remain active. Finally, it is after the objection has been cleared can the company only submit a fresh application.
To ensure a smooth strike off process, it is crucial for the company to meet ACRA’s strike off criteria before submitting the application. If you need more details about the procedure to strike off local company in Singapore, feel free to contact us for assistance.