If a company is no longer doing business or pursuing its chosen venture, the option of having it deregistered can be a consideration.
Provided enough and evident reasons are visible that a certain company indeed already has stopped operations, ACRA, as supported by the Singapore Companies Law can strike off that business entity. On top of the initial reason of closure, a few others can be grounds for a business to be stricken out of the Business Register.
These several reasons are as follows:
(a) if the company would fail or decline to continue a case towards a legal proceedings due to reasons such as inability to pay for legal counsel or for just the simple reason that the owner or CEO doesn’t want to;
(b) if the company no longer has assets nor liabilities to provide for technology and manpower essential to running a business operation;
(c) if the company owes no penalty nor outstanding commitments to ACRA due to whatever relevant reasons;
(d) if the company doesn’t owe the government anything like taxes or license charges;
(e) if the company no longer owe the charge register nor mortgages; or,
(f) if the company has no outstanding summons for any of its employees.
Otherwise, striking off or deregistration of Singapore Company will not be possible.
The striking off procedure starts when a company is sent a deregistration notice. The same copy will be sent to IRAS and the company directors to their residential addresses all in the span of 14 days. Upon delivery, all recipient are given a grace period of one month should any of the parties would like to raise an objection about the copies received. Thereafter, in a period of three (3) months, a notification of intention to deregister the company will be published in the Government Gazette for documentation purposes.
The same rights are endowed for anyone from the parties to stand off and express an objection. When the 3 months are over and no relevant objection was raised, ACRA will push through with the final notification stipulating that the company is formally and officially off the register.
The same notification will signify the date a company had been successfully struck off. Obviously, it takes 5 months to strike off one single company in Singapore.
In the event that the application is unapproved, the request will be sent back to the sender for the purpose of modification, altering or adding a few details. Once the revision is over, it is send again for consideration and the complete whole process will again go through. The start of 5 months would be after the initial notice of deregistration is sent to all involved parties.
However, should any of the parties would no longer require deregistration and decides to invest and continue the business operation after all, the whole striking off business will be over. This is how the striking off process works in Singapore.
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