When you strike off company Singapore or deregistration of your company from the company’s register, the main outcome of this process is the dissolution of the company. Directors may also like to strike off the name of the company from the register when they are planning to case the trading.
Winding up is one of the widely preferred ways to close the business. However, people find it a formal way to do the expert appointment for liquidation Singapore or to manage the closure of the company. When the company is not doing any business activity, or it doesn’t have a specific set of liabilities and assets, it gets cheaper to strike off the company in comparison to winding it up. But if the company is insolvent, it can apply for a wound-up procedure instead of considering striking off.
Criteria to strike off company Singapore
There are so many criteria to start with striking off Singapore Company; a few of these are listed below:
- If the company has not taken up any business since its incorporation, or they have ceased the trading process, striking off may help.
- When a company has no pending debts to be paid to Singapore’s Inland Revenue Authority, any government agency, or the Central provident fund.
- There should be no outstanding charges in the register.
- The company should not be involved in any kind of legal proceedings outside or within Singapore.
- For liquidation Singapore, the company should not be subjected to any type of pending or ongoing regulatory action or disciplinary proceeding.
- The company should have no pending liabilities and assets till the date of application submission. Furthermore, no contingent liabilities and assets should arise in the future.
- The majority of company directors must authorize you to submit the application for striking off the company.
The registrar can strike off company Singapore name from the register when they find a reliable reason to do so. Mainly, it may be about ceased business operations and trading activities. Before proceeding ahead, the registrar may send a letter to involved parties such as directors, members, and secretaries of the company while asking them to provide proof that the company is still doing some business. The time given for producing this document is 30 days in Singapore. In case they do not receive any relevant reply, the registrar publishes a legal notice about the striking-off process of the company in the Gazette. One copy of this notice may be also sent to the company through registered post. This time company gets 60 days to prove that they are conducting some trading activities and it should not be struck off.
When the company doesn’t offer proof to stop the striking-off process, the registrar may ultimately take out the name from the register. One more notice regarding this will be published in Gazette and the company is considered to be officially dissolved. Generally, the process to strike off company Singapore is pretty simple; but if you find any difficulty, it is better to take help from professionals in the area.