Guide to Deregistering a Company in Singapore Process Breakdown, Key Considerations Practical Insights

A Complete Guide to Company Strike-Off in Singapore Procedures, Key Considerations, and Practical Insights

Operating a business in Singapore-whether a startup or a multinational corporation-may eventually lead to the need for company closure due to various reasons. In recent years, with increased global economic uncertainty, many small and medium-sized enterprises SMEs registered in Singapore have chosen to voluntarily close their companies to reduce operational costs and compliance burdens. According to data from the Accounting and Corporate Regulatory Authority ACRA, the number of company strike-offs in Singapore increased by approximately 12% year-on-year in 2025, indicating a growing awareness among business owners regarding the importance of a compliant and efficient strike-off process.

This article offers a practical and systematic overview of the procedures, key considerations, and real-world insights related to company strike-off in Singapore, helping business owners navigate the process smoothly and avoid unnecessary delays.

1. Common Reasons for Company Strike-Off

A company strike-off Striking off is a common method for businesses to exit the market in Singapore. Unlike winding up, this process is suitable for companies that are dormant, debt-free, and no longer conducting business. Common reasons for choosing strike-off include

The business is no longer profitable or has undergone strategic restructuring;

Shareholders or directors decide to exit the market;

The cost of maintaining compliance exceeds the company’s commercial value;

The company was incorporated but never commenced operations.

To qualify for strike-off, a company must meet the following conditions as stipulated by ACRA

1. No outstanding debts;

2. No ongoing legal proceedings;

3. All assets have been fully liquidated;

4. All shareholders agree to the strike-off;

5. No outstanding payments owed to government agencies, such as the Inland Revenue Authority of Singapore IRAS or the Central Provident Fund Board CPF Board.

2. Step-by-Step Guide to the Strike-Off Process

The strike-off process is managed by ACRA and typically takes between 2 to 4 months to complete. Here is a detailed breakdown

1. Internal Resolution and Shareholder Approval

The company must first hold a board meeting and a shareholders’ meeting to pass a resolution for strike-off. A minimum of 75% shareholder approval is required, and formal minutes of the meetings must be recorded.

2. Settle All Assets and Debts

Even though the company must be debt-free, it is essential to ensure all liabilities are fully settled. Any unresolved financial matters may lead to rejection by ACRA.

3. Submit Form DS01 via BizFile+

The application is submitted through ACRA’s BizFile+ platform using Form DS01, which includes

Company registration number;

Reason for strike-off;

A declaration signed by the director confirming the company meets the strike-off criteria;

A copy of the shareholders’ resolution.

The application fee is S$70.

4. ACRA Review and Gazette Publication

After receiving the application, ACRA will conduct an initial review. If the company meets the requirements, ACRA will publish a strike-off notice in the Government Gazette for a period of 60 days, during which any interested party may file an objection.

5. Official Strike-Off and Certificate Issuance

If no objections are received within the 60-day period, ACRA will officially strike off the company and issue a Certificate of Striking Off. From this point on, the company ceases to exist as a legal entity.

3. Key Considerations and Common Pitfalls

While the strike-off process appears straightforward, many business owners encounter delays or rejections due to oversight. Here are some critical points to bear in mind

1. Complete Tax and CPF Clearances

Before submitting the strike-off application, the company must complete all tax filings, including Form C-S/Full, and ensure all CPF contributions for employees have been made. IRAS and CPF Board will review the application, and any unresolved matters will result in rejection.

2. Notify Stakeholders in Advance

Once the company is struck off, it can no longer engage in any business activities. It is essential to inform clients, suppliers, and partners in advance and properly terminate contracts.

3. Avoid the Risk of a Zombie Company

Some business owners mistakenly believe that a non-operational company will be automatically removed. In reality, inactive companies are still required to submit annual returns and financial statements. Failure to comply may result in being placed on ACRA’s inactive company list or even forced removal, which could damage the director’s reputation.

4. Post-Strike-Off Asset Ownership

Once a company is struck off, all remaining assets become the property of the state. It is crucial to complete asset distribution or transfer before the strike-off to avoid permanent loss.

4. Practical Insights from Real-World Experience

Based on discussions with Singaporean entrepreneurs and professional service providers, here are some valuable tips

1. Plan Ahead and Avoid Last-Minute Rushes

Many companies discover unresolved financial or tax issues only after deciding to close, which can delay the process. It is advisable to begin preparations at least 3-6 months before the intended closure.

2. Seek Professional Assistance

While the strike-off process can be done independently, coordinating with multiple agencies such as IRAS, CPF Board, and ACRA can be complex. Engaging a professional accountant or corporate secretary firm can significantly improve the success rate.

3. Consider Members’ Voluntary Winding-Up as an Alternative

If the company has outstanding debts or complex assets, consider Members’ Voluntary Winding-Up MVL. Although more involved, this method is more suitable for companies with assets that need proper distribution.

4. Stay Updated on Policy Changes

Singapore has been continuously improving its corporate exit mechanisms. For example, in 2025, ACRA launched a Fast-Track Strike-Off Pilot Program to allow eligible small companies to complete the process more efficiently. Business owners should stay informed about such initiatives to take advantage of streamlined procedures.

Conclusion

Singapore consistently ranks among the world’s top jurisdictions for ease of doing business, and its corporate strike-off process reflects this efficiency and clarity. For business owners deciding to exit the market, understanding and following the correct procedures is essential. By planning ahead, addressing financial and tax matters thoroughly, and seeking professional support when needed, entrepreneurs can complete the strike-off process smoothly and avoid future legal or compliance risks.

Whether driven by strategic shifts or operational pressures, exiting a business should be handled with the same level of professionalism and care as its formation. A company strike-off is not an end, but rather the beginning of a new chapter.