Singapore provides entrepreneurs with a variety of choices for winding up their firms, based on their level of debt, tax status, and the condition of their assets.
Directors have a legal obligation to wind up an insolvent corporation under company law. An insolvent business is one that is unable to pay its debts as they become due. A creditor can take the corporation to court and request that a judgement be entered against it for the debt. If they are still unable to receive payment, a creditor may petition the court to have an insolvent corporation wound up.
The best course of action for a dormant firm in Singapore that hasn’t done any business and hasn’t made any money for the full financial year, is to shut it down. In Singapore, striking off an inactive business is the most appropriate method of closure.
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The procedure is submitting a request to the Accounting and Corporate Regulatory Authority (ACRA) to have the company’s name removed from the Companies Register. The application can be submitted online using the ACRA Bizfile website, however you will be charged a fee, which will be determined by factors such as compliance status and problems. You must state within the application that the dormant firm has not performed any business since its creation and that it has no bank account open during this time. The application will be processed within 5 working days after it is submitted.
How Bluebox can help you?
Bluebox has more than 40 years of expertise helping businesses of all sizes navigate the numerous alternatives available in Singapore. Bluebox’s professional team can not only advise you on the best course of action for closing a company in Singapore, but can also handle the paperwork and guarantee that all legal requirements are satisfied.
Restructuring
Corporate restructuring also known as business restructuring, whether it’s an operational or financial turnaround, may be a powerful instrument for protecting a company’s value and that of its stakeholders.
Entity Strike Off
The Singapore Companies Act empowers ACRA to remove a company from the Register if there is reason to believe that the company has ceased operations or has met certain conditions. We will assist you in understanding the conditions for striking off as well as the process involved
Deregistration of Branches
An Offshore Company is commonly set up in a tax haven like the British Virgin Islands (BVI), Marshall Islands, Seychelles Islands, etc., where there are no corporate or personal income taxes, capital gains taxes, reporting requirements.