Licensed Insolvency Practitioner
(IP License No. C1-00023-2021)
Incorporated since 2012, we have helped many business owners dealing with stressful financial situations. We provide them with pragmatic solutions to turnaround or close Singapore company.
Our team of experienced and qualified professionals provide guidance to directors, management and shareholders to hive down and wind up company in Singapore.
Give us a call, drop us an email or let us a note (contact form on the right) and let us guide you through the liquidation scenario today.
All discussions will be kept private and confidential. Wind up company Singapore made easy!
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Hotline: +65 9068 5025
Office: +65 6535 0146
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What is Liquidation?
Liquidation is a process where the company’s assets are realised in an orderly manner and the resulting proceeds distributed in fair manner in accordance to insolvency laws, which for Singapore is Insolvency, Restructuring & Dissolution Act 2018. After all the assets are realised and funds distributed, the company will be dissolved and the liquidation process completed.
Set out below are 4 ways to close a company:
For solvent companies which cannot qualify for strike off, the directors and shareholders may wish to consider MVL to close a solvent company. For MVL, the following requirements must be met:
· Majority shareholders (75% or more) agree to wind up the company; and
· Majority directors must form the opinion and declare that the company will be able to settle all its liabilities within 12 months of commencing the MVL.
A liquidator will be appointed to look into the affairs of the company and the scope of work will include:
· drafting, preparation and filing of resolutions and documents (such as declaration of solvency);
· submission of accounts to ACRA and Comptroller of Income Tax;
· taking over of the bank accounts and administration of the funds;
· distribution of surplus assets to shareholders; and
· arrangement of final meeting.
Our professional fees to act as liquidator for the scope of work set out above is S$8,000 (excluding disbursements).
Disbursements are payable in addition to the professional fees outlined above and may include advertisements, lodgment fees, commissioning expenses, printing and photocopying. Disbursements is estimated to be in the region of S$2,000.
Directors and shareholders may consider to close down an insolvent company by way of a CVL. There is a common misconception that a CVL is initiated by creditors but a CVL is a company initiated winding up process, which requires the approval of the shareholders.
In a CVL, the company would convene an extraordinary general meeting to place the company under CVL and appoint a liquidator. On the same day, a creditors’ meeting would be convened to explain the circumstances leading to the winding up of the firm, to table a statement of affairs, to affirm the appointment of the liquidator.
For CVL, the following requirement must be met:
· Majority shareholders (75% or more) agree to wind up the company;
Our professional fees to act as liquidator for the scope of work set out above is S$12,000 (excluding disbursements).
Disbursements are payable in addition to the professional fees outlined above and may include advertisements, lodgment fees, commissioning expenses, printing and photocopying. Disbursements is estimated to be in the region of S$6,000.
Striking off is one of the most common (and economical) way to close a solvent company, where all creditors can be repaid. However, to qualify for a strike off application, the following requirements must be met:
· Company has ceased operations or has never been in business since incorporation;
· Majority shareholders (75%) agree to strike off the company;
· All directors agree to the strike off;
· Company must settle all its liabilities (present and future) prior to the strike off;
· Company must have cleared its tax affairs; and
· Company is not involved in a lawsuit.
The strike off application can be submitted online by the company’s director, company secretary or a registered filing agent.
Our professional fees to assist a strike off of the company is S$800 (inclusive of disbursements).
A company may be wound up under a court order if the company is unable to pay its debts, or if the court is of view that it is just and equitable to wind up the company. The winding up application can be presented by parties including the company itself, the directors, the shareholders, creditors or relevant stakeholders.
We are insolvency practitioners licensed by the Ministry of Law and we can be appointed as liquidators for Court Liquidation. Most of our court liquidation assignments involve investigations into the companies’ affairs and we look into potential breaches by the directors and management.
For us to act as liquidator for court winding up, kindly contact us via the hotline +65 6535 0146 for a more detailed discussion.