Company Strike Off Services in Singapore: Fast & Compliant Closure

8 hours ago

Not every company lasts forever. Some close because the business model didn’t work. Others because owners move on to new ventures. In Singapore, when a company is no longer needed, the official way to close it without going through liquidation is called a strike off.

It sounds simple—just remove the company from the register. But there are rules. The process has to be handled properly, and that’s where help from a company secretary or providers of secretarial services becomes important.

What a Strike Off Means

A strike off is when the Accounting and Corporate Regulatory Authority (ACRA) removes a company from its register. Once approved, the company stops existing as a legal entity.

Unlike liquidation, which involves selling assets and paying creditors through a court-supervised process, strike off is meant for companies that are already inactive and free from debt. It’s the “fast track” closure option, but it’s only available if your business meets the conditions.

Conditions for Strike Off

The company must be clean before applying. That means no outstanding debts, taxes, or legal proceedings. All bank accounts should be closed. If there are employees, their Central Provident Fund contributions need to be settled.

Directors must confirm that the company hasn’t been active. It can’t have ongoing income or expenses. If the company was trading recently, financial records have to be updated and taxes filed before the application goes in.

Put simply: you can’t use strike off as an escape hatch to avoid obligations. The business has to be wrapped up properly first.

The Process Step by Step

Here’s how strike off usually unfolds. First, the directors decide to close the company and ensure it qualifies. ACRA requires an online application, which includes supporting documents and declarations.

If ACRA accepts the application, it sends a notice to the company’s registered office and to all directors and shareholders. Creditors also get notified. This is to give anyone with an interest a chance to object.

If no objections are raised, the company name will be struck off the register after about four months. From then on, the company no longer exists.

Why Secretarial Services Matter

On paper, the process looks straightforward. In practice, it’s easy to miss details. That’s where secretarial services help.

A company secretary in Singapore is responsible for ensuring compliance with filing rules and corporate records. Even if the company is closing, those responsibilities don’t disappear. For example, if annual returns or tax filings are overdue, the strike off application can be rejected.

Secretarial services help by reviewing the company’s records, preparing the necessary resolutions, and submitting documents correctly. They also keep track of deadlines. For small business owners who aren’t familiar with corporate filings, this saves time and reduces the risk of errors that could delay the closure.

The Role of the Company Secretary

Every company in Singapore must appoint a company secretary within six months of incorporation. The secretary is not just an administrative role—they’re the one making sure the business stays compliant with ACRA and other requirements.

When it comes to strike off, the secretary’s job is to confirm that the company meets the conditions, prepare resolutions for the directors, and submit the strike off application. They also act as the contact point if ACRA requests clarification.

Without a company secretary or professional help, owners often find themselves stuck trying to navigate technical requirements. Small oversights—like failing to close a dormant bank account or leaving a small unpaid tax—can derail the application.

Common Pitfalls

One common mistake is applying for strike off while the company still has outstanding liabilities. Even something as small as an unpaid annual filing fee can block the process.

Another issue is timing. If directors resign before appointing replacements, or if the secretary position is left vacant, the application becomes invalid. ACRA requires the company to have at least one local director and a company secretary at the time of strike off.

Some businesses also forget about statutory records. Even inactive companies are supposed to maintain registers and update shareholder or director information. If those records are missing, it can raise problems when applying for closure.

How Long It Takes

From the time the application is submitted, it usually takes about five months to complete the strike off process, assuming no objections. This includes the waiting period after ACRA publishes the notice.

If ACRA requests additional documents, or if there are errors in the application, the timeline stretches out. With proper preparation, the process is smooth. Without it, delays are common.

Strike Off vs. Other Closure Options

Strike off isn’t the only way to close a company. Some businesses don’t qualify and need to consider liquidation instead.

Liquidation is used when the company still has assets or debts. A liquidator is appointed to sell assets, pay creditors, and distribute remaining funds to shareholders. It’s a longer and more expensive process but necessary if the company is not debt-free.

Voluntary winding up is another path, usually chosen for larger companies with significant assets. It involves shareholder resolutions, liquidators, and sometimes court involvement.

Compared to these, strike off is faster, simpler, and cheaper. But it only works if the company is already cleared of obligations.

A Practical Example

Imagine a small tech start-up in Singapore. The founders incorporated a private limited company three years ago, but the business never took off. They still have the company on the register, even though it’s been dormant for two years.

They could keep it running, but maintaining a dormant company still means filing annual returns and keeping a company secretary. Over time, those costs add up.

Instead, they decide to strike it off. Their secretary checks that there are no debts, unpaid taxes, or bank accounts still open. After preparing the resolutions and filing with ACRA, the company goes through the standard process. Within a few months, it’s removed from the register.

This example shows why strike off is often the best option for small businesses that no longer operate. It’s efficient, but only if done with the right preparation.

Why Compliance Matters Even for Closure

Some owners wonder why so many steps are necessary if the company is shutting down anyway. The reason is accountability.

Strike off is a legal act. Once a company is removed from the register, creditors lose a direct way to claim against it. That’s why ACRA insists that debts and obligations are cleared first.

It’s also why the role of the company secretary and secretarial services remains critical. They provide assurance that the closure is done properly, protecting directors from potential penalties later.

Final Thoughts

Closing a company through strike off in Singapore is not complicated, but it demands attention to detail. The business must be debt-free, inactive, and compliant before the application is made.

Secretarial services and the guidance of a company secretary make the process easier. They help prepare the paperwork, check compliance, and keep things moving until the company is officially removed from the register.

For business owners, this means peace of mind. When done correctly, strike off is a fast and compliant way to move on from a company that’s no longer needed.