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Company Liquidation in Singapore

Company Liquidation in Singapore

Updated on Wednesday 17th August 2016

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Company-Liquidation-in-SingaporeLegislation on company liquidation in Singapore

Considering the company liquidation procedures that can be initiated in Singapore, there are few legal frameworks that address each procedure. Members of Singapore companies may apply for voluntary liquidation according to Section 290 (1) (b) in the Companies Act. Creditors requesting company liquidation in Singapore must comply with the Companies Act, Sections 296, 297 and 298. Compulsory winding up of a company falls under the regulations of Sections 253, 254 and 255 (2) of the Singapore Companies Act. Striking off in Singapore falls under the regulations of Section 344 in the Companies Act.

You can also watch this video on compnay liquidation offered by our Singapore lawyers:

Company winding up in Singapore

Winding up is the procedure through which a company in Singapore terminates its business activities, collects and realizes its assets. Once the procedure is completed, the assets are used to pay the company’s debts and any remaining amount is distributed among shareholders. The procedure for winding up a company is made up of several steps:

  1.   a special resolution or a Court order is issued for the company to be wound up,
  2.   appointing a liquidator,
  3.   the liquidator evaluates and turns the company’s assets into cash and pays the creditors,
  4.   the distribution of any remaining assets between company members,
  5.   the dissolution of the company.

 Company winding up in Singapore can be voluntary and it can be initiated by the members or creditors of the company or compulsory by Court order.

You can request the legal services of our lawyers in Singapore if you need help with the company liquidation procedures.

Company striking off in Singapore

Private companies in Singapore that have ceased to conduct business activities and if it meets certain requirements may apply to the Trade Register to be deleted from its records. The striking off procedure is easier, faster and cheaper but it only applies to small companies in Singapore. Among the conditions a company must satisfy is it must have less than 18 months from registration and before the Annual General Meeting takes place. A company may not apply for striking off if it is involved in any insolvency procedures, if it has an agreement with the creditors or if it has debts with the Inland Revenue Authorities of Singapore (IRAS).

You can contact our law firm in Singapore for details about all conditions that must be met when applying for company striking off.

 

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