How to liquidate a company in Singapore
Not sure how to liquidate a company in Singapore? You have come to the right page! Liquidation is a process where a company’s existence is brought to an end. ‘Liquidation’ or ‘Winding Up’ can be categorized into 3 different types; Member Voluntary Liquidation, Creditor Voluntary Liquidation and Court Winding up.
If a company is solvent, the company’s members or shareholders may apply for the Member Voluntary Liquidation Singapore (MLV). This can only be applied if majority of shareholders (75% or more) agree on the business closure and they must also form the opinion and declare that the company will be able to settle all its liabilities within 12 months of commencing MLV.
For insolvent companies, directors and shareholders may consider closing down the company by the way of Creditor Voluntary Liquidation. This method is initiated by the company to hold a general meeting and seek approval from majority of creditors (75% or more) on the business closure.
As for court liquidation, a company may be wound up under a court order if the court is of view that it is just and equitable to wind up the company. For all 3 cases, a liquidator need to be appointed to look into the affairs of the company and settle all the necessary procedures.
Need more in-depth understanding on how to liquidate a company in Singapore? Company liquidation Singapore made easy! Get in touch with our dedicated liquidators today and we will guide you through the liquidation process.