Singapore Small Biz Shutdown Process Costs Revealed to Ease Your Closure Journey

Deregistration of Small Companies in Singapore A Detailed Guide on Procedures and Costs to Help You Smoothly Exit Business Operations

In the course of business operations, company development is not always smooth sailing. For some small enterprises, market changes, strategic shifts, or poor management may lead to the decision to deregister the company - a rational choice in many cases. Particularly in Singapore, a global business hub known for its efficiency and regulatory clarity, completing the company deregistration process legally and properly is a key concern for entrepreneurs and business managers alike.

In recent years, with increased global economic volatility and uncertainties during post-pandemic recovery, many small and medium-sized enterprises SMEs have faced challenges. According to data released by Enterprise Singapore, while new business registrations continued to grow in Q1 2025, a notable portion of companies also chose to exit the market. This trend highlights that alongside entrepreneurial enthusiasm, effective company lifecycle management has become an increasingly important topic.

This article provides a comprehensive overview of the deregistration procedures and associated costs for small companies in Singapore, helping business owners understand the process clearly and complete their exit smoothly.

I. Understanding Deregistration Options Winding Up vs. Striking Off

In Singapore, there are two primary methods for deregistering a company Winding Up and Striking Off. Each applies under different circumstances and involves varying timeframes and costs.

1. Winding Up Liquidation

Winding up is suitable for companies that still hold assets or have outstanding liabilities. It is a formal process typically initiated by directors or creditors, requiring the appointment of a licensed liquidator to handle financial affairs, settle debts, and distribute remaining assets. This method is more complex and better suited for companies with significant assets or unresolved creditor/debtor issues.

2. Striking Off

Striking off is a simpler and faster option designed for inactive companies with no assets or liabilities. It is ideal for startups that never commenced operations or dormant zombie companies. To qualify for striking off, the following conditions must be met

The company has never started business or has ceased operations.

There are no outstanding debts.

All assets, including bank account balances, have been disposed of.

All shareholders agree to the application.

There are no ongoing legal proceedings.

If these criteria are satisfied, the company can apply for striking off via the Accounting and Corporate Regulatory Authority ACRA.

II. Step-by-Step Process Overview

Step 1 Preparation Phase

Regardless of the chosen method, thorough preparation is essential before initiating the deregistration

Settle all pending matters, such as tax filings, employee termination, and contract cancellations.

Ensure the most recent Annual Return and financial statements have been filed.

Close the company’s bank accounts.

Inform all relevant stakeholders, including clients, suppliers, and partners.

Step 2 Hold a Shareholders’ Meeting

For winding up, a shareholders’ meeting must approve the liquidation resolution and appoint a liquidator. For striking off, written consent from all shareholders is required.

Step 3 Submit Application to ACRA

Use ACRA’s BizFile+ platform to submit the striking-off application, providing necessary documents such as shareholder consent forms.

Step 4 Await Approval

ACRA typically takes about 30 days to review the application. If objections arise - for example, from the Inland Revenue Authority of Singapore IRAS or creditors - the application may be rejected.

Step 5 Official Deregistration

Once approved, ACRA will publish a notice in the Government Gazette. The company will be officially deregistered three months later.

III. Cost Overview

The cost of deregistering a company varies depending on the chosen method

1. Striking Off Costs

ACRA Application Fee Approximately SGD 50

Notarization/Legal Witness Fees if required SGD 200-500

Unpaid Taxes or Fines Must be settled prior to approval

2. Winding Up Costs

Liquidator Fees Typically SGD 2,000-5,000, depending on complexity

ACRA-related Fees Around SGD 1,000

Newspaper Advertisement Fees SGD 500-800 for public announcement of liquidation

Administrative Expenses Includes document handling, postage, etc.

In summary, striking off is more cost-effective and suitable for simple, inactive entities, whereas winding up is appropriate for active companies with unresolved business matters.

IV. Key Considerations and Common Pitfalls

Although the deregistration process appears straightforward, several critical details are often overlooked

1. Tax Compliance Is Mandatory

Before proceeding, ensure all tax obligations are fulfilled, including Form C-S/Form C submission and GST returns with IRAS.

2. Avoid False Declarations

Misrepresenting the company's financial status in a striking-off application can lead to legal consequences. ACRA has the authority to reinstate the company and hold responsible parties accountable.

3. Retention of Records for Five Years

Even after deregistration, maintain financial records, ledgers, and transaction documents for at least five years in case of audits or investigations.

4. Clear Intangible Assets in Advance

If the company owns bank accounts, trademarks, or patents, these must be transferred or closed before deregistration to avoid complications.

V. The Value of Professional Assistance

While Singapore’s deregistration procedures are transparent, they can still pose challenges for inexperienced business owners - especially when dealing with taxes or liquidation. Seeking help from professional accountants or corporate service providers can significantly streamline the process.

Such experts can assess the best deregistration approach, prepare documentation, liaise with authorities, and reduce compliance risks. With the growing number of foreign investors entering Singapore, local service providers have enhanced their offerings. Many now provide one-stop deregistration packages covering everything from initial consultation to final filing, which have gained popularity among SMEs.

Conclusion

As one of the world’s most competitive business environments, Singapore ensures that its company deregistration system remains efficient and well-regulated. Whether driven by strategic restructuring or operational failure, timely and compliant deregistration helps avoid legal pitfalls and lays a solid foundation for future ventures.

We hope this guide serves as a practical reference for business owners navigating the end of their company’s journey - enabling a smooth transition into the next chapter of your entrepreneurial path.