The accredited liquidator in Singapore can help you understand the entire process and the changes in the rules so that you can stay tuned to the latest requirements. However, if you are looking for quick highlights on what is Simplified Insolvency Programme (SIP) and how you can qualify for the same, the information below provided by our approved liquidator Singapore may help you better.
What is Simplified Insolvency Programme?
If you are running a business in Singapore, you must stay up to date with the latest norms and regulations to conduct various operations in your company. The Singaporean government has recently made some amendments to the Insolvency, Restructuring & Dissolution Act 2020 and the new changes have come into effect from January 2021. They have now established Simplified Insolvency Programme (SIP) to improve the business processes for small and micro-level businesses in the country.
Simplified Insolvency Programme (SIP) is designed for micro and small organizations to ensure a simple, low-cost, and fast winding up process when required. If a company is looking for special assistance on restructuring and debt management, the liquidator Singapore can help them achieve desired outcomes.
The experts have established two separate programs under SIP where the first one is called as Simplified Winding Up Programme (SWUP) and the other is the Simplified Debt Restructuring Programme (SDRP). The first one provides small and micro companies with an easier winding up procedure and it is applicable to insolvent companies only that require to cease operations. On the other side, the second option is suitable for companies to restructure their debts while ensuring viability in business.
Liquidator Singapore’s guide on how to qualify for the SIP?
In order to qualify for SIP in Singapore, the company should not be in the middle of some other debt restructuring process or it should not be following other insolvency procedures. The eligibility criteria for SIP involve:
- Annual sales turnover should not be exceeding above S$10 million.
- It should not have more than 30 employees.
- It should not have more than 30 creditors.
- The company liabilities should not exceed S$2 million.
- It should not be a foreign company.
If you qualify for SIP, you can take help from a local accredited liquidator in Singapore to proceed ahead with relevant procedures.
What is the latest announcement from the Ministry of Law (MinLaw)?
The Ministry of Law (MinLaw) has recently made an announcement regarding the final extension for the SIP program; the deadline is open for 18 months and will end on 28th Jan 2024. SIP offers a simplified solution to businesses for handling financial disturbances in micro and small companies. With this procedure, you can avail improved insolvency service for handling debts and liabilities of the business. Distressed companies can take help from an accredited liquidator in Singapore to restructure their business or to go through the desired winding-up program. It may help them to get rid of financial burdens and rising loads of debts.