Criteria For Striking Off Your Company
There are various options for closing a local company. One of them is to apply for it to be struck off from ACRA’s Register under Section 344 of the Companies Act, Cap. 50. ACRA will only approve the application when it has reasonable cause to believe that the company is no longer in business or operation. Before one submits an application, there are certain criteria that needs to be met. So what are they?
Criteria for ACRA to consider approval for striking off
- No longer in operation or has not started business operations since incorporation
- Bank account has been closed
- No outstanding employers’ CPF contributions owing to Central Provident Fund Board (CPFB)
- No outstanding charges in the company’s charge register
- Currently not nor envisaged to be involved in any court proceedings within or outside of Singapore
- Has no current or contingent assets and liabilities*
- Accounts are made up to the date of business cessation as indicated in the application
- Has no outstanding penalties due to ACRA
- Does not owe any debts to government departments (e.g. loan, arrears, rental)
- Has no records of outstanding tax liabilities to Inland Revenue Authority of Singapore (IRAS). Please refer to IRAS website for a checklist on the things to do
- Is not in the process of receiving tax refunds from the IRAS
- None of its officers have outstanding ACRA summonses
- If the Company is GST registered, it needs to be cancelled
- Directors have obtained written consent from the majority of the shareholders
- Has attached a set of accounts made up to the date of business cessation indicated in the application. If it is a public company limited by guarantee, then it must submit its last audited set of accounts
- If the company has submitted its last audited accounts, the accounts should have no assets and liabilities. However, if the accounts show that the company has assets and liabilities, the applicant must submit documentary evidence to show that the assets have been disposed off and that the liabilities have been settled or waived
- * If the Company has liability which is trade in nature and needs to be waived off, it is still subject to corporate tax.
If the company has been dormant since incorporation, it is required to submit a covering letter that the company had
- No business transaction since incorporation
- Not opened a bank accounts or the bank account has been closed
- Not held an AGM or
- The first AGM which is required to be held within l8 months from the date of incorporation is not due.
Who is authorised to submit the applications?
Only the company director, the company secretary or a professional firm can submit an online application via BizFile to strike off the company.