Striking off
A company may apply to ACRA to strike off its name from the Register. ACRA may approve the application if there is reasonable cause to believe that the company is not carrying on business, and the company is able to satisfy the criteria for striking off.
If the company is GST registered and is no longer carrying on a business, it has to apply for cancellation of GST registration with IRAS. Find out more at IRAS website.
Click here for more information on striking off a local company.
Members' Voluntary Winding up
A company may decide to wind up its affairs voluntarily if the directors believe that the company will be able to pay its debts, in full, within 12 months after the commencement of the winding up. The company will appoint a liquidator, or provisional liquidator, to wind up its affairs and file the necessary notifications required under the Companies Act / Insolvency, Restructuring and Dissolution Act. For more details, please refer to the Companies Act / Insolvency, Restructuring and Dissolution Act or seek professional advice.
Creditors' Voluntary Winding up
A company may decide to opt for a 'creditors' voluntary winding up” if its directors believe that it cannot, by reason of its liabilities, continue its business. The company will appoint a liquidator, or provisional liquidator, to wind up its affairs and file the necessary notifications required under the Companies Act / Insolvency, Restructuring and Dissolution Act. For more details, please refer to the Companies Act / Insolvency, Restructuring and Dissolution Act or seek professional advice.
Compulsory Winding up
A company may be wound up under an Order of the Court under certain circumstances e.g. the company is unable to pay its debts. The Court may appoint a liquidator to wind up the affairs of the company. Where no liquidator is appointed by the Court, the Official Receiver shall be the liquidator of the company.
The liquidator will file the necessary notifications required under the Companies Act / Insolvency, Restructuring and Dissolution Act. For more details, please refer to the Companies Act / Insolvency, Restructuring and Dissolution Act or seek professional advice.
Simplified Insolvency Programme (SIP)
The Simplified Insolvency Programme (SIP) provides micro and small companies a simple, fast, and low-cost proceedings to assist in the winding up of the company or restructuring of business debts. There are two separate programmes under the SIP.
(i) The Simplified Winding Up Programme (SWUP) provides micro and small companies with a simplified creditors’ winding up procedure. This applies when the company is insolvent, intends to cease business and opt to be wound up.
(ii) The Simplified Debt Restructuring Programme (SDRP) enables micro and small companies to restructure their debts while staying viable to turn the business around.
Micro companies are defined as having annual revenue of less than $1 million; Small companies are defined as having annual revenue of less than $10 million.
Please click here for more information on the SIP. If you have any questions on the programme, please contact MinLaw at www.minlaw.gov.sg .
Receivership
The property of a company may be placed under receivership, for example, if a receiver is appointed to enforce a charge for the benefit of holders of debentures of the company. For more details, please refer to the Companies Act / Insolvency, Restructuring and Dissolution Act where applicable or seek professional advice.
Judicial Management
If a company, or its creditor(s), considers that the company is/will be unable to pay its debts and there is a reasonable probability of rehabilitating the company, instead of resorting to a winding up, the Court may upon an application, order that the company be placed under judicial management. A judicial manager will be appointed. For more details, please refer to the Companies Act / Insolvency, Restructuring and Dissolution Act or seek professional advice.