Liquidation Procedure: Strike Off
When it comes to the shut down of a company, it may happen either voluntarily by the owners or as per the Government’s order (under particular circumstances). Now the reason behind the shutdown may vary immensely.
Some of the most common reasons include the company’s incapability to earn profits, unable to pay debts, violation of statutory provisions, etc. Now a company can go in for liquidation either by winding off or by striking off.
Today we discuss the most common liquidation procedure which is the company strike off. Read till the end to find out more about this liquidation process.
Striking off company Singapore or companies of other places basically means applying for the shutdown by the owner of the company itself. As per the ACRA (Accounting and Corporate Regulatory Authority), a company can apply to strike off the company’s name from the Register under Section 344 of the Companies Act.
ACRA shall approve the company’s strike off application if it finds the cause of liquidation reasonable. Plus, the company must be able to fulfill the criteria for striking off as well in order to receive approval.
The requirement for Strike Off application
- The company by any chance must not be associated with any sort of court proceedings in Singapore or even outside of the country.
- Trading from the company’s side must be ceased.
- The company must be cleared off of all the assets and liabilities during the time of applying for the strike off.
- Any sort of outstanding penalties must be cleared by the company. Plus, the company must not have any composition offers owed to the Registry.
- The company must not have pending tax liabilities with the IRAS (Inland Revenue Authority of Singapore).
- The Directors and Company Secretary of the company must be free from ACRA summonses.
- The credentials of the company directors must be matching with the records of ACRA.
- The shareholders of the company must consent to the strike-off procedure and that the company shall attain a letter of consent from each member of the shareholder.
The application of the strike-off procedure must be proposed to the Company Registrar. Now as per the complexities of the company’s case and if the submitted documents are adequate, the ACRA may as much as 7 days to process the strike off application.
If the criteria for the strike-off are completely fulfilled by the company then the ACRA will proceed forward to send a strike-off notice to the company’s registered address of the office, its officials at the home address and also to the authorities of Singapore tax office.
After 4 months, an ultimate notification will be proceeded stating the company’s strike off from the Register. The entire procedure of strike-off takes about 5 to 6 months of time.
Now that you are well-versed with the basics of strike off procedure, you may be able to apply for the one. You may seek help from an agent for going through the procedure of Strike off company Singapore or any other location.