What does it mean to "Close a Company"?
Closing a company is commonly referred to as deregistration or striking off a company. If you want to close company Singapore, you need to follow certain steps. You first need to send an application to the Accounting and Corporate Regulatory Authority (ACRA) to start the closing process formally.
Criteria for Closing your Company
Are you planning to close business Singapore because of loss or other reasons? If yes, then make sure that your business is fulfilling the following criteria;
- Business Transactions
The first thing on the list that you need to assure is that your company has never done any business transactions.
Your company should not have any debts taken from various government agencies or assets and liabilities.
- Legal Violations
The company can be closed if it has not done or taken any actions against the law. All the decisions should have been taken per the legal act of the Singapore government.
- Consent of the Directors
The company can be closed only when most of the company’s directors are willing to do so.
- Pending Proceedings
The company should not have any of the proceedings going on.
Checklist for all the Companies
If you have decided to close company Singapore, here are a few things that you should do as early as possible;
- File your company’s final tax return
- Pay your employees
- Pay all the taxes
- Clear all the debts
- Cancel your company’s GST registration
Things to Consider When Closing your Company
Shutting your business is not an easy task at all. It is a heart wrenching decision at a difficult time. If you intend to close your business, you need to consider a few things.
Here we will guide you about all the important aspects you should consider beforehand.
- Seek the Advice
The first and foremost thing that you need to do is get the advice of the experts. It would be best if you took the suggestions from your lawyer, accounting team, and, most importantly, the banks. They will guide you in making the right decision that best suits your condition.
- Set a Closing Date
The next thing on the checklist is to set a closing date. Finalizing the closing date is very important as it will give you a deadline to finalize all those pending tasks and your to-do list.
You will be required all your contracts, taxes, bill payments, and debts that you need to complete before the closing date approaches.
In case you afterward decide to extend the closing date, you will need to see whether your closing agreement allows for it or not. So be very vigilant when finalizing the date.
- Pay off all your Bills and Debts.
The next thing on the list that can cause an issue afterward is your debts. Clear your debts as early as you can so that you do not face any issues in the future.
Make sure that all your financial agreements are fulfilled before closing your company in reality.
- Cancel the Name of your Business
If you plan to close your business soon, cancel the name to give people an idea that your business no longer exists now. Make sure you pay all the debts and taxes also.
- Inform Others
There will be several people associated with your business that should know about your decision. So, inform them on time, as it will greatly impact their lives. You should keep your staff members, your partners, and the accounting team well informed so that they can plan things accordingly.
- Pay all the Taxes
Submit all your taxes and clear all your paperwork. Clearing all your financial agreements will largely depend on your business type and size, so you need to plan things accordingly. Submit your final tax forms on time after discussing all the rules and regulations in detail with your account specialist.
- Close your Bank Accounts
Next, you need to close all the credit cards and bank accounts that come under the name of your business or company.
- Inform your Customers
Inform your customers and suppliers about your decision regarding the close Company Singapore. The best thing is to tell them a month before to plan things accordingly.
- Sell your Assets
The next thing you need to do is sell the extra stuff that is no use. This can include all the furniture, equipment, and vehicles. Besides this, you also need to clear your rent payments, insurances, invoices, and debts.
- Stop all the Agreements.
If you have made agreements and subscriptions to other companies, You also need to stop them. This may include all the business-related subscriptions, contracts, service agreements, and phone and gas utilities.