Want to Dissolve a Singapore Company? These Facts You Must Know!

Want to deregister a company in Singapore? Here's everything you need to know!

In Singapore, business registration and operations are relatively simple and efficient. However, once a company stops operating, how to legally and compliantly deregister it becomes a concern for many entrepreneurs. With recent changes in Singapore's economic environment, especially market adjustments after the pandemic and the impact of certain industry downturns, more and more companies are considering exiting the market. This article will provide a detailed explanation of the procedures, key points, and latest policy updates related to company deregistration in Singapore, helping you fully understand how to complete the process smoothly.

1. Basic Process of Deregistering a Company in Singapore

According to the Accounting and Corporate Regulatory Authority ACRA of Singapore, there are usually two ways to deregister a company voluntary liquidation and strike-off. The specific method chosen depends on the company's financial status and the shareholders' wishes.

1. Voluntary Liquidation

This applies when the company still has assets that can be distributed to shareholders. A liquidation committee must be established to handle debts, sell assets, and finally submit a liquidation report to ACRA. The entire process usually takes 6-12 months.

2. Strike-off

If the company has ceased operations and has no outstanding debts or assets, it can choose the strike-off procedure. This method is faster, usually completed within 3-4 months. However, before applying, it is essential to ensure that the company has no outstanding taxes, no employees, and no unfulfilled contracts.

2. Recent News Strengthened Company Management in Singapore

According to a report by The Straits Times in June 2025, Singapore is strengthening its regulation over company registration and deregistration to prevent the existence of zombie companies. Zombie companies refer to those that have not been active for a long time but remain in the registry, which may be used for money laundering, tax evasion, or other illegal activities.

To this end, ACRA has introduced several measures, including

Enhancing transparency of company information All companies are required to update their registered information regularly, including directors, shareholders, and addresses.

Limiting the duration of inactive companies If a company has not submitted financial statements or conducted any business activities for two consecutive years, ACRA will automatically place it in a dormant state and may take further actions.

Strengthening data sharing with the tax authorities Ensuring there are no tax loopholes during the deregistration process.

These policies mean that business owners need to be more careful when deregistering their companies, ensuring all procedures are complete to avoid being held accountable by ACRA due to incomplete information.

3. Essential Preparations Before Deregistering a Company

Before submitting the formal deregistration application, business owners need to complete the following key steps

1. Settle all debts

The company must settle all unpaid debts before deregistration, including bank loans, supplier payments, and employee wages. Unsettled debts may affect the deregistration process.

2. Handle employee matters

If the company has employees, it must legally process their resignation and pay their due salaries and compensation. Otherwise, employees may pursue legal action.

3. Close bank accounts

Before deregistering the company, make sure to close relevant bank accounts to avoid account freezes or late fees.

4. Submit the final financial statements

The company must submit the latest financial statements to an accounting firm and ensure they comply with Singapore Financial Reporting Standards SFRS.

5. Notify relevant authorities

This includes the Inland Revenue Authority of Singapore IRAS, the Central Provident Fund Board CPF Board, etc., to ensure all records are updated.

4. Estimated Costs and Time for Deregistering a Company

According to official data from the Accounting and Corporate Regulatory Authority ACRA, the cost of a strike-off is approximately 100 SGD, while the cost of voluntary liquidation is higher, generally between 500-2000 SGD, depending on the size and complexity of the company.

The time required for deregistration varies depending on the situation. A strike-off usually takes 3-4 months, while voluntary liquidation may take 6-12 months or longer.

5. Frequently Asked Questions

Q Can I deregister my company at any time?

A Yes, but you must ensure that the company meets all deregistration requirements, such as having no debts or employees.

Q Can the company be restored after deregistration?

A Once a company is officially deregistered, it is usually not possible to restore it. Make sure to think carefully before deciding to deregister.

Q Will deregistering the company affect personal credit?

A If the company has violated regulations during the deregistration process, such as concealing debts or false reporting, it may affect personal credit records.

6. Conclusion

Although the process of deregistering a company in Singapore is relatively clear, it involves multiple steps, and even small mistakes can lead to delays or legal responsibilities. Especially under the current strengthened company supervision, business owners should plan ahead and ensure all procedures are legal and compliant.

If you are considering deregistering your Singapore company, it is recommended to consult a professional accountant or company secretary service as early as possible to smoothly and safely complete the deregistration process. Only with sufficient preparation can you avoid unnecessary trouble and maintain a good reputation for future business development.

We hope this article provides you with valuable references and helps you avoid unnecessary detours in the process of deregistering your company.