Applying for company striking off in Singapore may appear straightforward at first glance. Many business owners assume that once operations stop, the company can simply be removed from the register without much effort. Unfortunately, this is far from the truth. Striking off is a formal legal process regulated by the Accounting and Corporate Regulatory Authority (ACRA), and mistakes can result in rejections, long delays, penalties, or even future legal problems.
This article highlights the seven most common mistakes business owners make when applying for company striking off—and how you can avoid them.
Mistake #1: Applying When the Company Is Not Eligible
One of the biggest and most common mistakes is applying for striking off when the company does not meet ACRA’s eligibility requirements.
To qualify, your company must:
- Have no outstanding liabilities
- Have no assets
- Have ceased all business activities
- Have no ongoing legal disputes
- Have no unresolved tax matters
Many directors assume that because they are no longer trading, the company automatically qualifies. This is incorrect.
Why This Is a Problem
If your company still has:
- Outstanding supplier invoices
- Unpaid salaries
- CPF arrears
- Unsettled tax matters
- Active bank accounts
Your application will likely be rejected.
How to Avoid This
Conduct a full internal review before applying. If you are unsure, professional service providers can assess your eligibility and advise on the correct route—striking off or liquidation.
Mistake #2: Forgetting About Tax Obligations
Many business owners focus on ACRA requirements but forget about IRAS.
Even if your company has stopped operating, you are still required to:
- File Estimated Chargeable Income (ECI)
- Submit Form C/C-S
- Settle any outstanding taxes
- Deregister for GST (if applicable)
Why This Is a Problem
IRAS must clear your company before ACRA finalises the striking off. If IRAS objects, the process will be halted.
Some companies assume that “no revenue” means “no filing needed.” This is false.
How to Avoid This
Make sure:
- All tax filings are up to date
- Tax assessments are settled
- IRAS clearance is obtained
This step alone causes many unnecessary delays.
Mistake #3: Leaving Bank Accounts Open
This mistake may sound small, but it is surprisingly common.
Even if the bank account has $0, leaving it open means your company still technically has an active financial channel. ACRA may treat this as an ongoing operation.
Why This Is a Problem
An open bank account suggests:
- The company may still receive money
- There may be undisclosed assets
- The company is not fully dormant
ACRA can reject your application based on this alone.
How to Avoid This
Before applying:
- Close all corporate bank accounts
- Obtain bank closure confirmations
- Withdraw or distribute remaining balances
Mistake #4: Overlooking Small or “Invisible” Assets
Assets are not just physical items like furniture or laptops. Many business owners forget about intangible or digital assets.
These include:
- Domain names
- Software subscriptions
- Trademarks
- Intellectual property
- Unused prepaid expenses
- Security deposits
Why This Is a Problem
ACRA requires that the company have no assets at all.
If an asset is later discovered, the company can be reinstated, which may expose directors to legal and financial consequences.
How to Avoid This
Do a thorough asset check:
- Deregister domains
- Transfer IP ownership
- Cancel subscriptions
- Close cloud services
- Terminate licences
A professional striking off service will usually run through this checklist with you.
Mistake #5: Making False or Inaccurate Declarations
When submitting a striking off application, directors must make a formal declaration that the company meets all the conditions.
Some business owners treat this as a formality and tick the boxes without proper verification.
Why This Is a Problem
Submitting false information—even unknowingly—can lead to:
- Penalties
- Director disqualification
- Legal consequences
- Future restoration of the company
- Personal liability
This is not just administrative—it is a legal declaration.
How to Avoid This
Never assume. Always verify:
- Financial records
- Tax filings
- Bank accounts
- Outstanding obligations
If in doubt, seek professional verification.
Mistake #6: Ignoring Objections From Stakeholders
Once your striking off application is submitted, ACRA publishes a notice in the Government Gazette. This allows interested parties to raise objections.
Stakeholders who can object include:
- Creditors
- Former employees
- Business partners
- Government agencies
Some directors wrongly assume that no one will care or notice.
Why This Is a Problem
If someone files an objection, the striking off process will be suspended. You may be required to:
- Settle outstanding debts
- Resolve disputes
- Provide documentation
- Go through liquidation instead
How to Avoid This
Before applying:
- Inform relevant stakeholders
- Resolve disputes
- Pay outstanding amounts
- Obtain written confirmations if possible
This reduces the risk of objections.
Mistake #7: Trying to DIY Without Understanding the Full Process
Many business owners attempt to handle striking off themselves, believing it is “just a form.”
While ACRA’s portal may make it look simple, the real complexity lies in compliance, declarations, and inter-agency coordination.
Why This Is a Problem
DIY applications often lead to:
- Incorrect submissions
- Missing steps
- Tax clearance delays
- Asset oversight
- Legal exposure
Some companies only realise mistakes years later when they receive legal notices or restoration actions.
How to Avoid This
Engage a professional striking off service that understands:
- ACRA requirements
- IRAS clearance
- Legal declarations
- Stakeholder management
- Compliance checks
What Happens If Your Striking Off Application Is Rejected?
A rejection does not just waste time—it can create future complications.
You may need to:
- Reapply
- Submit additional documents
- Resolve issues you overlooked
- Face objections
- Go through liquidation instead
Repeated mistakes also raise red flags.
Can a Struck-Off Company Come Back to Haunt You?
Yes.
A company can be restored within 6 years if:
- A creditor appears
- Undisclosed assets are found
- Fraud is suspected
- False declarations were made
Once restored, directors may face:
- Legal claims
- Compliance backlogs
- Penalties
- Court proceedings
This is why doing it right the first time matters.
Why Proper Closure Matters More Than You Think
Some business owners feel emotionally detached from a failed or inactive company and just want it gone. However, improper closure can affect:
- Your personal credit
- Your ability to become a director again
- Your professional reputation
- Your legal standing
Striking off is not just about closing a company—it’s about closing it properly.
How Professionals Help You Avoid These Mistakes
A professional striking off service typically:
- Assesses eligibility
- Reviews financials
- Clears tax matters
- Closes accounts
- Handles declarations
- Submits accurate filings
- Manages objections
- Tracks application progress
This eliminates guesswork and risk.
When Should You Consider Striking Off Instead of Liquidation?
Striking off is ideal if:
- There are no liabilities
- There are no assets
- There are no disputes
- The company is dormant
- All obligations are settled
If these conditions are not met, liquidation is the safer and legally required route.
Final Thoughts
Striking off a company in Singapore may look simple, but it is filled with compliance traps. The seven mistakes outlined above are extremely common—and entirely avoidable.
A clean and compliant company closure protects your future, reputation, and peace of mind. If you want to avoid these costly errors and ensure your company is properly closed, it’s best to engage experts who handle the entire process end-to-end.
To learn more about how to close your company safely and correctly, you can visit https://www.shkoh.com.sg/striking-off-services/, where professional guidance ensures your business is struck off in full compliance with Singapore regulations.