Singapore is listed among the best global destinations for business investments, thanks to flexible policies and an incredible competitive environment. The government offers enough incentives for foreign investors, and the whole process of opening a company here is simplified and automated to the best possible extent. However, closing a company here can be a little complicated, especially if you are unsure of the procedures. Here are some of the things you need to know.
Closing a company
The first idea is to take the help of a liquidator for the process. Another option is to complete the procedure as stated by ACRA, so as struck the name from the Company Registrar. For the latter, your business must meet a few preconditions. One of the first preconditions is to repay all liabilities, including loans, debts, and taxes, and secondly, all the assets must be liquidated. A private limited company in Singapore can be shut off voluntarily by the creditors or members, as long as the company is in a position to repay all existing debts within a year of starting the process of closing. However, if there are too many debts or liabilities, the directors may choose to appoint a liquidator to check the affairs.
There’s a systematic process of closing a company in a Singapore. The directors (a majority of them) must submit a written letter to ACRA for “Declaration of Solvency”. An EGM (Extraordinary General Meeting) is held next within the next five weeks, which will include the appointment of the liquidators. A copy of the resolution is also submitted with ACRA and must be printed in a known newspaper. The liquidators will have access to the records and will take over the company affairs for further settlement. Companies in Singapore can be shut by a court order, as well, if required, and even in that case, a liquidator is appointed.
The Companies Act gives the power to Registrar of Companies to strike off the name of a company from the Register, if the Registrar is convinced of non-activity. This simply means that the concerned company is no longer operational and has paid all the taxes. Also, it’s important to answer the questions asked by IRAS. The company must also cancel GST registration.
If you are unsure of the entire process, VentureHaven can help. Besides helping with company incorporation, we also assist in closing companies, by adhering to the norms and completing the paperwork. Check with us to know more about packages.