FAQs on Closing a Company
|1||How to close a Singapore Company?|
|There are two ways to close a Singapore Company. One is to winding up the Company (Voluntary winding up or Compulsory winding up) with professional assistance. The other is to apply for striking off with ACRA if you are able to meet the requirements stated in the guidelines http://www.acra.gov.sg/Company/Closing_the_Company/Striking+Off+a+Local+Company.htm on application for striking off.|
|2||What is striking off?|
|A company may apply to ACRA to strike its name off the Register pursuant to Section 344 of the Companies Act . ACRA may approve the application if there is reasonable cause to believe that the company is not carrying on business, and that the company is able to satisfy the criteria for striking off.|
|3||What is “Winding Up” of a company?|
|Other than striking off, a company can be closed down through winding up, which is commonly known as liquidation. In winding up, a liquidator is appointed to sell the company’s assets for cash. These proceeds will then be distributed among the company’s creditors and whatever remaining assets will be returned to the members.
There are two main categories of winding up: