How to close a Singapore company: A detailed Guide (2025)

In the work Singapore company formation and operation, for various reasons, a business owner may decide to close a company. Similar to forming a company, closing a company also requires certain procedures and requirements.

With this comprehensive guide full of detailed information from ACRA below, GLA will help businesses understand how to close their company in Singapore smoothly and effectively, from:

• The exact definition from ACRA on the term company closure.
• Company closure process in Singapore from A to Z.
• IMPORTANT things companies need to remember before, during and after the company dissolution process.

1. 3 things to do before closing a Singapore company

Singapore company closure is the process of a Business terminating the business operations of a Singapore company. 

To do this, the Enterprise must apply to the Accounting and Corporate Regulatory Authority (ACRA).

To make company dissolution easy and effective, businesses need to consider the following 3 important things before filing:

• De-register for GST with the Inland Revenue authority of Singapore (IRAS).
• Pay all employee salary and insurance obligations to CPF account.
• Settle all debts with related parties. 

ACRA will only approve the application for winding up of the company If the company does the above. Otherwise, the company will have to go through a more complicated process to dissolve the company.

2. Methods of closing a company in Singapore

In Singapore, there are two main ways for a business to close a company:

1. Striking off.
2. Winding up.

These two methods will be applied depending on the circumstances and the company's level of preparation before filing for company closure.

Important note

The above two methods apply to Singapore domestic limited liability companies. This is the type chosen by many domestic and foreign investors.

Other methods such as sole proprietorship, partnership, branch office, representative office will have a completely similar company closing process in several steps.

Businesses should contact GLA immediately to know the most optimal company closure plan for the company.

3. How to cancel Singapore company registration?

3.1. What is company striking off (business cancellation)?

Striking off is the process by which ACRA removes a company from the ACRA Register.

In Singapore, the two common forms of business cancellation are:

• Voluntary striking off.
• Compulsory striking off.

3.2. When is mandatory company striking off applicable?

Under the Companies (Amendment) Act, ACRA has the power to deregister companies if they cease to exist.

For example, a company fails to file financial statements with ACRA for several consecutive years.

These amendments help ensure that inactive companies are effectively removed from the register, helping to maintain a clear and accurate record of businesses operating in Singapore.

3.3. Conditions for submitting an application to cancel business registration

ACRA will only approve voluntary deregistration applications if it satisfies the application requirements and ACRA is satisfied that the company is no longer carrying on business.

Conditions for closing a company include the following 6 factors:

• Business operations: The company has not conducted business since its establishment or has ceased business for many months or years.
• No debt: The Company has no outstanding debts with IRAS, CPF, any other government agency or third party.
• No collateral: The Company has no outstanding mortgages.
• No legal action: The Company is not a party to any legal proceedings, disputes or litigation (in or outside Singapore).
• No assets and liabilities: The Company has no assets or liabilities at the time of filing and has no potential assets or liabilities in the future.
• Application requirements: The company representative must file an application if he/she wants to close the company.

3.4. Procedure for filing an application to cancel business registration for a Singapore company

After meeting the conditions for closing the company, the process of filing for cancellation of business registration will be as follows:

4. How to wind up a Singapore company?

4.1. What is Singapore company winding up?

Winding up, also known as liquidation, is a formal process in which a company's assets are converted into cash to pay off its debts and obligations.

A business can choose to dissolve its company whether or not it is solvent.

The dissolution process requires a Liquidator to handle the winding up of the company and its assets.

4.2. Types of Singapore company dissolution

Businesses can choose from the following 4 forms of dissolution, depending on the company's capabilities.

1. Voluntary winding up) if the company can pay off all its debts within 12 months of the commencement.
2. Creditor winding up if the company is unable to pay all its debts within 12 months of commencement.
3. Compulsory winding up If a person decides to file a summons for liquidation proceedings
4. CSimplified insolvency program (SIP) if you are a small or very small company.

Upon dissolution, any tax credits owed by the company will be paid to the Insolvency & Public Trustee's Office (“IPTO”).

Shareholders wishing to claim this tax credit should contact the IPTO.

4.3. Singapore company dissolution process

• Voluntary winding up

• Dissolution by creditor

A business may opt for a creditors' voluntary winding up if all key persons/directors decide that the company is unable to pay off its debts within 12 months of the date of winding up and is unable to file a Declaration of Insolvency.

The process goes like this:

1. The company filed for dissolution.
2. The creditors pass a resolution on whether to allow the dissolution, appoint a liquidator and hold a meeting to decide on the dissolution process.
3. Follow the same procedure as for voluntary dissolution.

• Dissolution by court

This process can be initiated by:

• Any creditor.
• Appointed Liquidator.

To begin the process, the initiator must file an Originating Summons with the court. The dissolution process, with court supervision, proceeds similarly to a voluntary dissolution.

4.4. Simple Debt Settlement Program SIP

The SIP programme is a process for very small and medium sized businesses to liquidate or restructure their business debts. The SIP comprises two separate programmes:

Simplified Liquidation Program (SWUP)

• Purpose: To provide a simplified creditors' voluntary winding up process for very small and medium sized companies.
• Conditions: For companies that are insolvent, want to stop trading and choose to dissolve.

Simplified Debt Restructuring Program (SDRP)

• Purpose: To enable very small and small companies to restructure their debts while continuing to operate to improve their financial situation.
• Very small companies are companies with annual turnover of less than S$1 million and small companies are companies with annual turnover of less than S$10 million.

5. What is the objection to the resolution to close the company?

Any individual or business can file an objection to an application to wind up a company in Singapore. If an objection is received, ACRA will notify the company.

Once ACRA publishes the notice of removal of a company's name from the Gazette, ACRA will accept any objections and notify the company if there are any objections.

The Company now has 2 months to resolve the objection. If the Company fails to resolve the objection and the objector does not withdraw the objection, the application for winding up the company will be invalid.

The company cannot apply for company closure again in the future if the above objection is not resolved or the objector actively withdraws the application.

6. How can we help you close your company in Singapore?

company closing process will become easier than ever. ChatGPT said: Hopefully, with the clear steps above, you now have enough information to make a smart decision when closing your company in Singapore. With help from GLA’s experts, the process will be simpler and smoother than ever.

GLA has the knowledge, experience, and hands-on practice to help you run your company smoothly in Singapore—and we're here to support you when it’s time to close it too. Here’s how we can help you:

• Advise you on the best way to close your company.
• Take care of all tax matters and handle any complaints.
• Help you manage all required steps before the company is officially closed.
• Submit your application and follow up to make sure the process goes as smoothly as possible.

7. FAQs about Singapore company closure

Highlights

• The two main methods of closing a company are striking off and winding up.
• Striking off (Deregistration of a company) is the process by which ACRA removes a company's name from the Companies Register.
• Winding up (dissolving a business) is the process of converting a company's assets into cash to pay creditors before closing the company.
• Businesses should settle all debts related to employees, the company, the government and other related parties before closing the company such as taxes, insurance, and debts.
• Foreigners who want to close a company in Singapore need support from a registered agent like GLA.