Singapore, renowned for its business-friendly environment, has become a hub for entrepreneurs and corporations alike. However, the lifespan of a company might not always align with its initial aspirations.
In such cases, the process of striking off a company in Singapore comes into play as a means of officially winding down a business entity. This article sheds light on the essential steps and key considerations involved in this process.
Reasons for Striking Off a Company
Companies may choose to strike off their operations for a variety of reasons. These could include the completion of a project, merger with another entity, financial challenges, or simply a change in the business landscape.
Regardless of the motive, the striking off process offers an organized way to dissolve a company that has ceased operations. Seeking help from strike off company in Singapore will help throughout the process.
Eligibility for Striking Off
Before proceeding with the striking off process, a company must meet certain eligibility criteria. These include the absence of any outstanding debts or liabilities, resolution of any legal disputes, and no ongoing legal proceedings involving the company.
Initiating the Process
To initiate the striking off process, company directors must hold a meeting and pass a resolution to apply for the strike off. This resolution must be filed with the Accounting and Corporate Regulatory Authority (ACRA) within 7 days of the decision.
Clearance of Outstanding Matters
Prior to applying for striking off, the company must ensure that all outstanding matters are settled. This includes settling any outstanding taxes, closing bank accounts, and notifying employees and relevant authorities.
Application for Strike Off
The application for striking off is done electronically through the ACRA’s online portal. The application must include a statement of solvency signed by the majority of company directors. This statement attests that the company is able to pay off its debts within 12 months of winding up.
After the application is submitted, the company is required to publish a public notice in the local newspapers and on the ACRA website. This notice serves as a final call for any objections from creditors or stakeholders.
Striking Off Approval
Upon successful review of the application and the absence of any objections, ACRA will issue a striking off notice indicating the intended striking off date. The company’s name will also be published on ACRA’s website for public reference.
Completion of Striking Off
On the specified striking off date, if there are no further complications or objections, the company will be officially struck off from the register. ACRA will send a formal notice to confirm the company’s dissolution. This marks the completion of the striking off process.
Impact on Directors and Shareholders
Directors and shareholders play crucial roles in the striking off process. Directors are responsible for ensuring that all necessary steps are taken before initiating the process, while shareholders must agree to the company’s dissolution.
The process of striking off a company in Singapore is a meticulous journey that involves several critical steps. From assessing eligibility and resolving outstanding matters to applying for striking off and public notifications, each stage requires careful attention to detail.
While it marks the end of a business entity, the striking off process ensures a seamless and legally compliant closure, contributing to the overall business-friendly reputation of Singapore. So, for companies that have ceased operations and wish to officially wind down, the process of striking off provides a well-structured pathway to closure in the dynamic business landscape of Singapore.