Process of Striking Off a Local Company in Singapore
In the business world, companies come and go. Competition is inevitable, and when new companies rise, there is always a risk that others who have struggled to adapt to the changes may not make it - it’s simply the natural cycle of the business, no matter whether you’re in Singapore or elsewhere the world.
What is a strike off?
When we talk about the closing or fall of a company, we might often come across the term “striking off”. In layman’s terms, to strike off a company is just a formal way of describing the closing down of a company. How do you strike off a company, and what happens when a company is struck off in Singapore? In the event of a company’s closure, the company is first deregistered from Singapore’s Accounting and Corporate Regulatory Authority (ACRA) registry, which will eventually formally dissolve the company. Generally, we can split a strike off into two categories: a voluntary strike off and an involuntary strike off.
Types of strike off
1. Voluntary strike off
A voluntary strike off occurs when the members or shareholders of the company want to strike off the name of the company from the register as they have no further use for the company and have opted to stop trading.
2. Involuntary strike off
An involuntary strike off happens under the registrar’s motion whereby the ACRA has reasonable grounds to believe that no business is being carried out any longer by the registered company and thus chooses to close it down.
Curious about what goes into the process of striking off a company? If your answer is “yes”, allow us to walk you through a step-by-step guide from application to final settlement.
Strike off process
A strike off can be applied online as long as it is done by the company director, company secretary, or a corporate service provider to the Company Registrar. In Singapore, this can be done via BizFile+ using SingPass or CorpPass.
Once the strike off application has been submitted, it will take the ACRA approximately seven business days to approve the application depending on the case and the documents submitted. However, note that ACRA does not charge filing fees for the application.
2. Review & Approval
Upon obtaining the approval for the application, the Company Registrar will send a “strike off notice” to the company at its registered office address, to its directors and company secretary at their residential address, and the Singapore tax authorities.
The applicant will then have 30 days to raise any objections concerning the strike off. If no objections are raised, the Company Registrar publishes the Notice of Intention to Strike Off on the government gazette.
3. Objection Grace Period
Interested parties will be given another grace period of 60 days to raise objections. The applicant will still be able to withdraw the application for striking off within this period. If no objections are raised, Company Registrar then publishes a final notice on the government gazette that the company has been struck off, including information such as when the company was struck off.
4. Dissolution Of Company
The company will then be dissolved (liabilities will continue, and the Court may wind up the company for further settlements). The entire process is estimated to take approximately six months. However, the public may still appeal against the strike off within six years of the strike off date.
Based on the above-mentioned steps, it’s obvious that the striking off process is a tedious one. It’s also rather long and something you don’t want to keep track of constantly. Nonetheless, if a strike off is what you are pursuing but don’t want the hassle of dealing with legal matters or the long process, then Atriox is here to help. With Atriox, we will process your strike off application within two working days upon receipt of fully signed documentation. The entire strike off process will only take four months instead of the six months necessary if you were to handle it yourself. However, you should note that several factors may affect the duration of the strike off application process:
Age of the company
ACRA return status of the company
Company tax return status
Financial health of the company
Settlement of outstanding commitments with external creditors, landlords and other parties
What happens after a strike off?
Now that you’re aware of the steps required for striking off a local company, perhaps you may wonder what happens after a company has been struck off. Typically, the public can reverse a strike off and the company’s registration status restored if there is an appeal via court order within six years after the strike off date. As with the application process, the restoration process has no filing fee. However, a strike off is no child’s play and should not be treated lightly as a company director who has managed at least three companies that ACRA struck off within five years will be disqualified from the director role. The individual will also not be allowed to take part in the management of any company for the next five years after the third company is struck off, so proceed with caution.
Why should you outsource the strike off process?
As previously mentioned, striking off a company is no walk in the park. We highly recommend you hire professionals to assist with dissolving the company for you if you wish to avoid the legal hassle and long waiting period. It will be more convenient and efficient, and you can also rest assured that a professional will handle the entire strike off process with utmost care and accountability. A professional will also ensure that the whole process complies with Singaporean laws while making it convenient for all parties involved. If cost is the question, then fret not, as Atriox’s professional fees for strike offs start from only $400. However, do note that there may be other variable fees, such as getting the final set of accounts done up, closure of bank accounts, etc., which will be charged separately. In a nutshell, the fee depends entirely on the client’s demands and needs and the volume of work involved, so it’s best to call or reach out to us to find out more about our strike off services and the processing fees.
Aside from the convenience, a trained professional’s services can provide throughout a strike off application process, enlisting their expertise is highly recommended due to the legal and statutory regulations involved in a company’s strike off. Instead of undergoing the headache and hassle alone, skip the inconvenience with Atriox. We have the right people with all the necessary qualifications to help you wrap up your strike off application in just an hour! Refer here for more information on our services.