Closing a Singapore Private Limited Company
There comes a time when businesses close down. In Singapore, owners or creditors can close a company when it is no longer viable to do business. It can also be closed compulsorily by ACRA, or be placed under receivership or under judicial management. Debts and unsuccessful business models may force an entrepreneur to close down their company as well. Hence, information on how to close a private limited company in Singapore may be useful to you.
Ways on how to close down a Pte Ltd company in Singapore
If you own a private limited company in Singapore and you wish to close it down for various reasons, there are two ways of closing a private ltd company:
- Winding up the company – a professional liquidator is appointed
- Applying for the company to be struck off from companies’ register in Accounting and Corporate Regulation Authority (ACRA) using a professional accounting firm such as J Accounting Pte. Ltd. who provides strike off services
Company Wind Up
The company’s creditors may wind up a company or the members can wind it up voluntarily. When the company has many liabilities such that it can no longer sustain itself in business, the directors appoint a professional liquidator to wind up the company.
Close a company in Singapore by striking off
Company strike-off is another way for how to close a private limited company in Singapore. ACRA can strike off a company from the companies register when the company is no longer in business or had not commenced any business since incorporation. If the chosen director of the company thinks that the continuity of operations in Singapore is no longer sustainable (or for any other reasons), then he may apply for a strike off in ACRA subject to all the shareholders and directors approval, as well as meeting the strike off criteria(s).
At the same time, if the company is GST registered, you also need to cancel the Goods and Services Tax (GST) registration with IRAS. You should also submit all the company’s income tax returns, file for clearance and bring all the books up to date. Apart from settling all the tax obligations and clearing all outstanding debts and liabilities, your company must also have closed its bank account before being able to strike off the company.
Once the above are all done and assuming there are no one objecting to your company’s striking off, generally it will take approximately 6 months from the time of application to officially close down the company. You will receive written notification and letters from ACRA once the company had been successfully struck off the registrar. If you need assistance to close a private limited company in Singapore, reach out to J Accounting Pte. Ltd. who can help you with that.
