What Do You Know About the Process and Costs of Closing a Company in Singapore?

How to Deregister an Abnormal Company in Singapore - A Complete Guide to the Process and Costs

Starting a company in Singapore, a country known for its efficiency, transparency, and business-friendly environment, is relatively straightforward. However, when a business fails or remains inactive for a long time, many entrepreneurs overlook the importance of properly closing it down. This issue becomes even more complicated when it comes to abnormal companies-those that have missed tax filings, annual returns, or have no active business records. Recently, local media reported that the Accounting and Corporate Regulatory Authority ACRA has stepped up efforts to clean up inactive and non-compliant companies, putting many dormant businesses at risk of being struck off or fined. If your company has stopped operating, how can you legally and properly close it? What are the procedures and costs involved? Let’s break it down.

1. What Is an Abnormal Company, and Why Is It Harder to Close?

An abnormal company typically refers to one that

Has failed to file its Annual Return on time

Has not submitted financial statements or completed annual audits

Is not actively operating but hasn’t been formally closed

Has an invalid company address, making it impossible to contact the responsible parties

Has missing or irregular tax filings

Such companies are flagged in Singapore’s business system as inactive or with poor compliance records. Once flagged by ACRA, companies may face fines, forced deregistration, or even damage to the director’s credit history. If you have a company like this, it’s best to address it early before it becomes a bigger problem.

2. Step-by-Step Guide to Closing an Abnormal Company

Closing an abnormal company is more complex than closing a regular one. Here’s how the process generally works

Step 1 Resolve Outstanding Issues

Before applying for deregistration, all compliance issues must be cleared. This includes submitting overdue annual returns, financial statements, and tax filings. If the company has not filed for several years, you may need to catch up on multiple years’ worth of filings and pay late fees. This is usually the most time-consuming and challenging part.

Step 2 Confirm Eligibility for Deregistration

According to ACRA, to qualify for strike-off voluntary deregistration, your company must meet the following conditions

All debts have been settled

No ongoing legal proceedings

No assets or liabilities

All directors and shareholders agree to the closure

No business activities or asset transfers in the past three months

Not involved in any court cases or investigations

If your company doesn’t meet these criteria, you may need to go through winding up, a more formal and lengthy process.

Step 3 Submit the Deregistration Application

Once the company is compliant and eligible, you can apply for deregistration via ACRA’s BizFile+ system. Required documents include

Deregistration application Form DS01

Signed consent from all directors and shareholders

Latest financial statements if any

Declaration of no outstanding liabilities

ACRA typically takes around 14 working days to review the application. If approved, they will issue a first notice and publish it in the Government Gazette. Three months later, if no objections are raised, the company will be officially deregistered.

3. What Are the Costs Involved?

The cost of closing an abnormal company depends on the severity of the non-compliance. Here’s a breakdown

1. Catch-Up Annual Filings and Tax Submissions

Depending on how many years of filings are overdue and whether you need an accountant’s help, this can cost S$300-S$800 per year. For multiple years, the total could easily reach several thousand dollars.

2. Deregistration Application Fee

A flat fee of S$200 is required when submitting the deregistration application through ACRA. This fee is non-refundable if the application is rejected.

3. Professional Service Fees

For complex cases, it’s advisable to hire a professional accounting or corporate secretarial firm. Their fees typically range from S$1,000 to S$3,000, depending on the workload and complexity of the case.

4. Real-Life Example One Entrepreneur’s Experience

According to a recent report by The Business Times, a Chinese entrepreneur in Singapore, Mr. Zhang, shared his experience. His company stopped operating in 2025, but due to a lack of awareness, he never formally closed it. By the end of 2025, he received a notice from ACRA stating that his company had been listed as non-compliant-resulting in fines and complications with his new work visa application.

Mr. Zhang said, I had no idea the consequences could be this serious. He ended up hiring an accountant to submit three years’ worth of overdue filings, which cost him about S$2,500, plus another S$1,500 in application and service fees. In total, he spent nearly S$4,000 to close the company properly.

He advises other entrepreneurs Once your company stops operating, take care of the closure right away. Don’t let small issues grow into big problems.

5. How to Avoid Becoming an Abnormal Company

For those currently running or planning to start a business in Singapore, here are a few tips

File your annual returns and financial statements on time

Even if your company is inactive, submit a no activity declaration

If you no longer need the company, deregister it early

Regularly check your company’s status and ensure contact details are up to date

When in doubt, consult a professional corporate secretary or accountant

Final Thoughts

In Singapore’s highly regulated and compliance-driven business environment, every action-or inaction-can leave a permanent mark. Closing a company isn’t something to ignore, especially if it’s flagged as abnormal. Dealing with it early and properly can save you from future legal, financial, and reputational issues. Instead of waiting for regulators to come knocking, it’s wise to plan ahead and close your business in a legal and responsible way-ensuring a clean and professional business record for the future.