Closing a business is never an easy decision. Whether your company is no longer profitable, inactive, or has fulfilled its original purpose, knowing how to formally and legally close it is crucial. In Singapore, one of the simplest ways to close a dormant or inactive company is through a process known as company striking off.
Striking off is often misunderstood. Some business owners assume they can simply stop filing returns and walk away. Others confuse striking off with liquidation. In reality, striking off is a structured legal process governed by the Accounting and Corporate Regulatory Authority (ACRA), and it must be done correctly to avoid future penalties, director disqualifications, or personal liabilities.
This guide explains what company striking off is, who qualifies, how the process works, and why engaging professional help can make the entire experience smoother and risk-free.
What Is Company Striking Off in Singapore?
Company striking off refers to the removal of a company’s name from ACRA’s register. Once a company is struck off, it legally ceases to exist. It can no longer operate, enter contracts, hold assets, or incur liabilities.
This option is typically used by:
- Dormant companies with no business activity
- Companies that were incorporated but never commenced operations
- Businesses that are no longer viable
- Startups that did not proceed with their plans
- Owners who want to exit cleanly and compliantly
Striking off is generally more straightforward, less expensive, and faster than liquidation. However, not every company is eligible.
Who Is Eligible for Company Striking Off?
ACRA imposes strict conditions to ensure that striking off is only used for simple, low-risk closures. Your company must meet the following criteria:
1. No Outstanding Debts or Liabilities
Your company must not owe money to creditors, suppliers, employees, or government bodies such as IRAS or CPF Board.
2. No Assets or Property
All assets must be disposed of before applying. This includes bank balances, equipment, intellectual property, and any form of ownership.
3. No Ongoing Business Activities
Your company must have ceased all operations.
4. No Ongoing Legal Proceedings
There must be no lawsuits, disputes, or enforcement actions involving the company.
5. No Outstanding Tax Matters
All tax filings must be completed, and any tax payable must be settled.
If any of these conditions are not met, your company may need to go through liquidation instead.
Striking Off vs. Liquidation: What’s the Difference?
Many business owners confuse striking off with liquidation. While both result in the closure of a company, they are fundamentally different.
Striking Off
- For inactive or dormant companies
- No assets or liabilities
- Simpler process
- Lower cost
- Faster timeline
Liquidation
- For companies with debts or assets
- Involves appointing a liquidator
- Creditors’ interests must be addressed
- More complex and expensive
- Legally intensive
Choosing the wrong method can lead to rejected applications or future legal complications.
Why You Cannot Simply “Abandon” a Company
Some directors mistakenly believe that they can stop filing returns and let the company “die naturally.” This is dangerous.
Failing to comply with statutory obligations can result in:
- Late filing penalties
- Summons and court actions
- Director disqualifications
- Personal liability risks
- Credit record implications
A company remains legally active until it is officially closed through striking off or liquidation.
Step-by-Step Process of Company Striking Off in Singapore
Here’s how the striking off process typically works:
Step 1: Ensure Eligibility
Before applying, confirm that the company meets all ACRA conditions.
Step 2: Settle All Obligations
This includes:
- Closing bank accounts
- Terminating contracts
- Paying outstanding debts
- Filing final tax returns
- Deregistering for GST (if applicable)
Step 3: Obtain IRAS Clearance
If your company has been active, you must seek tax clearance from IRAS.
Step 4: Prepare the Application
The striking off application is submitted via BizFile+ by the company director or appointed professional.
Step 5: ACRA Review and Gazette Notification
If the application is accepted, ACRA publishes a notification in the Government Gazette.
Step 6: Public Objection Period
There is a waiting period (typically 60–90 days) where any interested party can object.
Step 7: Final Striking Off
If no objections are raised, ACRA officially strikes the company off the register.
How Long Does the Striking Off Process Take?
On average, the entire process takes about 3 to 6 months, depending on:
- Completeness of documents
- Tax clearance speed
- Any objections raised
- ACRA processing time
Delays usually occur when tax matters are unresolved or when bank accounts and assets are overlooked.
Common Mistakes Business Owners Make
1. Forgetting to Close Bank Accounts
Even a few dollars in a bank account can disqualify the application.
2. Ignoring Tax Filings
All ECI and Form C filings must be up to date.
3. Overlooking Dormant Assets
Software licenses, trademarks, and domain names are considered assets.
4. Not Informing Stakeholders
Creditors, shareholders, and business partners should be informed.
5. DIY Applications Without Understanding Requirements
Incorrect submissions lead to rejection, delays, or future legal issues.
Responsibilities of Directors During Striking Off
Directors remain legally responsible until the company is officially struck off. This includes:
- Ensuring accuracy of declarations
- Confirming no hidden liabilities exist
- Completing statutory filings
- Acting in good faith
False declarations can lead to penalties, prosecution, and disqualification.
What Happens After a Company Is Struck Off?
Once struck off:
- The company no longer exists as a legal entity
- Bank accounts should already be closed
- Business name becomes available again
- Contracts become void
- Directors and shareholders are released from obligations related to the company
However, ACRA can restore a company to the register if irregularities are discovered later.
Can a Struck-Off Company Be Reinstated?
Yes. Under certain conditions, a company can be restored within 6 years of striking off. This usually happens when:
- A creditor surfaces
- Legal disputes arise
- Undisclosed assets are discovered
- Fraudulent declarations were made
Restoration is costly, complicated, and best avoided by ensuring everything is properly handled upfront.
Why Engage a Professional Striking Off Service?
While it may seem simple, company striking off involves multiple agencies, compliance checks, and legal responsibilities. A professional service ensures:
- Proper eligibility assessment
- Full tax clearance
- Error-free documentation
- Compliance with ACRA regulations
- Peace of mind
Professionals also spot issues that business owners commonly overlook.
When Is the Best Time to Strike Off a Company?
The best time is when:
- The company has no more business plans
- All liabilities are cleared
- There is no intention to revive operations
- The company is dormant and costing money to maintain
Keeping a dormant company alive unnecessarily leads to recurring costs such as filing fees, secretarial fees, and accounting fees.
What Documents Are Usually Required?
Typical documents include:
- Directors’ resolution
- Declaration of solvency
- Latest financial statements (if applicable)
- IRAS clearance records
- Shareholder consent
Requirements may vary depending on the company’s history.
Costs Involved in Striking Off
Costs generally include:
- ACRA application fees
- Professional service fees
- Tax clearance handling
- Documentation preparation
Compared to liquidation, striking off is significantly more affordable.
How Striking Off Affects Directors and Shareholders
Once completed properly:
- Directors are no longer responsible for compliance filings
- Shareholders lose their ownership interest
- No further statutory obligations exist
However, improper striking off can expose directors to future legal risk.
Is Striking Off Right for Your Business?
Striking off is ideal if your company:
- Has no debts
- Has no assets
- Has ceased operations
- Has no legal disputes
If your company does not meet these conditions, liquidation may be required instead.
Final Thoughts
Company striking off is not just an administrative formality—it is a legal closure process that must be done correctly. When done right, it gives business owners a clean, compliant exit with no lingering risks.
If you are considering closing your company and want a smooth, worry-free process, it’s best to engage professionals who understand Singapore’s regulatory requirements inside out. You can learn more about reliable and compliant company closure solutions by visiting https://www.shkoh.com.sg/striking-off-services/, where expert guidance ensures your business is closed properly and legally.