Closing a company is not as simple as shutting down operations and walking away. In Singapore, businesses must follow a formal and legally recognised procedure to cease existence. One of the most straightforward methods—if your company qualifies—is company striking off.
Striking off is often chosen by dormant or inactive companies that have no assets, no liabilities, and no intention to resume business. However, while the process is simpler than liquidation, it is still regulated by the Accounting and Corporate Regulatory Authority (ACRA) and involves strict compliance checks.
This article provides a step-by-step breakdown of the company striking off process in Singapore so you know exactly what to expect, what to prepare, and how to avoid costly mistakes.
Step 1: Confirm That Your Company Is Eligible for Striking Off
Before anything else, you must determine whether your company qualifies for striking off.
ACRA only allows striking off if the company:
- Has no outstanding debts or liabilities
- Has no assets of any kind
- Has ceased all business activities
- Has no ongoing legal disputes
- Has no outstanding tax matters
If any of these conditions are not met, striking off is not appropriate, and your company may need to go through liquidation instead.
Why This Step Is Critical
Many applications are rejected simply because the company is not eligible. Directors often overlook small liabilities, forgotten assets, or unresolved tax filings.
Skipping this step can lead to:
- Delays
- Rejection
- Restoration of the company later
- Legal exposure
Step 2: Cease All Business Operations Completely
Your company must stop all commercial activities before applying for striking off.
This includes:
- Issuing invoices
- Receiving payments
- Entering contracts
- Providing services
- Employing staff
Even one active transaction can disqualify your application.
What to Do
- Complete all existing contracts
- Terminate supplier agreements
- Inform clients
- Cancel subscriptions
- Shut down operational systems
This ensures your company is truly dormant.
Step 3: Settle All Outstanding Liabilities
You must clear every liability before applying.
This includes:
- Supplier invoices
- Employee salaries
- CPF contributions
- Rental obligations
- Loan balances
- Credit card payments
- Government fees
Why This Matters
Striking off is meant for companies with no financial obligations. If a creditor later surfaces, the company may be reinstated, and directors could face legal consequences.
Step 4: Dispose of All Assets
Your company must not own any assets at the point of application.
Assets include:
- Cash in bank accounts
- Equipment
- Furniture
- Software licences
- Domain names
- Trademarks
- Intellectual property
- Security deposits
Commonly Forgotten Assets
Many directors forget:
- Cloud software accounts
- Website domains
- Prepaid services
- Digital wallets
- Escrow balances
All of these must be closed, transferred, or disposed of.
Step 5: Close All Corporate Bank Accounts
Even a zero-balance account is considered an active asset channel.
You must:
- Close all corporate bank accounts
- Obtain bank closure confirmation
- Distribute any remaining balances
Why This Is Important
An open bank account implies that:
- The company could still receive money
- Assets may still exist
- The company is not fully dormant
This alone can cause rejection.
Step 6: Clear All Tax Matters with IRAS
This is one of the most commonly misunderstood steps.
Even if your company made no money, you must still:
- File Estimated Chargeable Income (ECI)
- Submit Form C / Form C-S
- Clear any tax payable
- Deregister for GST (if applicable)
Why IRAS Clearance Matters
ACRA consults IRAS before approving a striking off. If IRAS objects, the process stops.
Many striking off delays happen because tax filings were incomplete or ignored.
Step 7: Prepare the Necessary Declarations
When you apply for striking off, directors must make formal declarations stating that:
- The company has no assets
- The company has no liabilities
- The company has ceased operations
- All statutory filings are up to date
This Is a Legal Declaration
Providing false or inaccurate information—intentionally or not—can result in:
- Fines
- Prosecution
- Director disqualification
- Restoration of the company
- Personal liability
This step should never be taken lightly.
Step 8: Submit the Application to ACRA
Once all preparations are complete, the striking off application is submitted via BizFile+.
The application can be submitted by:
- A director
- A company secretary
- A professional service provider
What Happens After Submission
ACRA reviews:
- Company status
- Compliance records
- Tax standing
- Historical filings
If everything is in order, ACRA will move to the next stage.
Step 9: Gazette Notification
After initial acceptance, ACRA publishes a notice in the Government Gazette.
This serves to:
- Inform the public
- Allow interested parties to object
- Provide transparency
Who Can Object?
Objections can be raised by:
- Creditors
- Former employees
- Business partners
- Government agencies
- Any party with a legitimate claim
Step 10: Objection Period
There is usually a waiting period of 60 to 90 days.
If no objections are received, the process continues.
If objections arise, you may be required to:
- Settle outstanding debts
- Provide explanations
- Submit supporting documents
- Withdraw your application
- Consider liquidation instead
Step 11: Final Striking Off by ACRA
If no objections are raised and all requirements are met, ACRA will officially strike the company off the register.
Once this happens:
- The company legally ceases to exist
- It can no longer conduct business
- It cannot own property
- It cannot sue or be sued
This is the official end of the company.
How Long Does the Entire Process Take?
Typically, striking off takes between 3 to 6 months.
Factors that affect timeline:
- Tax clearance speed
- Completeness of records
- Objections
- ACRA workload
Delays often happen due to incomplete filings or overlooked obligations.
What Happens After the Company Is Struck Off?
After striking off:
- Directors are released from statutory duties
- Shareholders lose ownership rights
- Contracts become void
- Bank accounts should already be closed
- The company name becomes available again
However, records remain archived.
Can a Struck-Off Company Be Restored?
Yes. A company can be restored within 6 years if:
- Undisclosed assets surface
- A creditor appears
- Fraud is suspected
- False declarations were made
Restoration can be expensive, time-consuming, and legally stressful.
Why Accuracy Matters More Than Speed
Some directors rush the striking off process because they want to move on quickly. This often leads to:
- Oversights
- False declarations
- Future legal risk
A properly handled striking off protects you from long-term consequences.
Why Professional Help Is Highly Recommended
Although striking off looks administrative, it is actually a legal compliance process.
A professional service helps with:
- Eligibility assessment
- Asset and liability review
- Tax clearance
- Bank account closure
- Proper declarations
- ACRA submission
- Objection handling
- End-to-end tracking
This ensures that nothing is missed.
When Striking Off Is NOT the Right Choice
Striking off is not suitable if your company:
- Has unpaid debts
- Has unresolved disputes
- Owns assets
- Is insolvent
In these cases, liquidation is the legally required route.
Final Thoughts
Striking off is a powerful tool for business owners who want a clean, compliant, and stress-free exit—but only if done correctly.
Understanding each step of the process ensures that your closure is final, risk-free, and legally sound. Mistakes can haunt you years later through restorations, claims, and penalties.
If you want your company to be closed properly without unnecessary delays or risks, it is best to work with professionals who understand the full regulatory landscape. To learn more about safe and compliant closure, visit https://www.shkoh.com.sg/striking-off-services/, where expert guidance ensures your company is struck off smoothly and correctly under Singapore law.