Process of Dissolving a Singapore Company A Comprehensive Analysis of the Striking-off Procedure

A Detailed Guide to Company Strike-Off in Singapore Process, Considerations, and Recent Policy Updates

Running a business in Singapore offers numerous opportunities, but it also comes with legal and financial responsibilities. When business owners decide to cease operations, properly completing the company closure process is essential to ensure all legal and tax obligations are fully discharged. Among the available options, company strike-off-administered by the Accounting and Corporate Regulatory Authority ACRA-has become a popular choice for many entrepreneurs under specific conditions.

This article provides a comprehensive overview of the strike-off procedure in Singapore, key considerations, and recent regulatory updates.

1. What is Company Strike-Off?

Company strike-off refers to the formal removal of a company from the registry by ACRA under Section 12 of the Companies Act. This applies to companies that have ceased operations or have shown no business activity for an extended period.

Once struck off, the company ceases to exist as a legal entity, and its assets are transferred to the state. It's important to distinguish strike-off from voluntary winding up. The latter is an active liquidation process initiated by directors or shareholders, typically used when there are outstanding assets or liabilities to resolve. In contrast, strike-off is suitable for dormant companies with no ongoing affairs.

2. Eligibility Criteria for Strike-Off

According to ACRA, the following situations may lead to a company being struck off

The company has not conducted any business activities for over one year.

It has failed to submit annual returns or financial statements.

It has not responded to official correspondence from ACRA.

It does not maintain a valid registered address or cannot be contacted.

If a company meets these criteria, ACRA may initiate the strike-off process after issuing a preliminary notice.

3. Step-by-Step Strike-Off Procedure

1. Preliminary Notice

ACRA sends a written notice to the company’s registered address, informing it of the potential strike-off and granting a grace period-typically 60 days-to respond or rectify compliance issues. Maintaining updated contact information is crucial at this stage.

2. Public Announcement

If no response is received within the deadline, ACRA publishes the company’s name in the Government Gazette. This public notice signals the impending removal of the company from the registry.

3. Official Strike-Off Order

After the publication period, ACRA issues the formal strike-off order. At this point, the company loses its legal status, and its name becomes available for registration by other entities.

4. Transfer of Assets

All bank accounts, properties, or other assets owned by the company automatically transfer to the Unclaimed Monies Office UMO under the Singapore government. Former shareholders may reclaim these assets within five years of the strike-off by providing sufficient proof of ownership.

4. Restoration After Strike-Off

Although a struck-off company no longer exists legally, it is possible to restore its status under Section 347 of the Companies Act. Former directors or shareholders can apply to the court for reinstatement within five years of the strike-off date.

The restoration process is complex and requires detailed documentation, court approval, and payment of outstanding filing fees and penalties. Therefore, it is highly recommended that companies act promptly upon receiving the initial notice to avoid irreversible consequences.

5. Recent Regulatory Developments

In late 2025, ACRA announced increased enforcement efforts regarding corporate compliance. Statistics show that more than 12,000 companies were struck off in the first half of 2025 alone due to failure to meet annual filing requirements-an 18% increase compared to the same period in the previous year.

To support better compliance, ACRA has enhanced its online services, including automated reminders for upcoming filing deadlines. These tools help reduce unintentional non-compliance and provide businesses with greater transparency over their regulatory obligations.

Local media reports indicate that some small and medium-sized enterprises SMEs failed to close inactive companies after post-pandemic restructuring, resulting in unintended strike-offs. This highlights the importance of aligning strategic decisions with proper corporate governance practices.

6. Conclusion

Understanding the strike-off process in Singapore is crucial for business owners seeking to exit the market responsibly. While strike-off serves as a passive yet viable method of deregistration, it should only be considered when a company has no remaining assets or liabilities.

To prevent future complications related to asset recovery or legal liability, business owners are advised to carefully assess their situation before proceeding. Consulting with professional advisors can help ensure compliance and facilitate a smooth transition out of business operations.

Ultimately, whether through strike-off or voluntary winding up, maintaining regulatory compliance remains the cornerstone of responsible corporate management.