Key Takeaways
- Learn the correct process to close a company in Singapore
- Understand industry best practices for company dormancy
- Know the recommended timeline for strike off
- Avoid common mistakes that delay approval
- See when professional strike off services are beneficial
Closing a business is never an easy decision, but for many entrepreneurs, it becomes a necessary step due to restructuring, prolonged inactivity, or the completion of a business venture. If you are planning to close company in Singapore, it is important to understand the strike off process, industry practices, and compliance considerations to ensure a smooth and successful outcome.
While ACRA does not prescribe a fixed minimum dormancy period, authorities assess strike off applications based on whether a company has genuinely ceased business activity and has no outstanding obligations. This guide explains how to close a company in Singapore, including recommended dormancy timelines, procedural steps, and best practices adopted by professionals.
Common Reasons for Company Closure in Singapore
Companies may decide on business closure in Singapore for various reasons, such as:
- Long-term inactivity or dormancy
- Strategic restructuring
- Change in business direction
- Completion of a specific project or venture
- Shareholder exit
Regardless of the reason, companies must follow proper company closure Singapore procedures to remain compliant with ACRA and IRAS.
Legal Way to Close a Company in Singapore
For inactive companies with no assets or liabilities, the most common method is a company strike off.
A company strike off Singapore involves submitting an application to ACRA to remove the company from the register after confirming that it:
- Has ceased all business activities
- Has no outstanding debts or liabilities
- Has no assets
- Has fulfilled all statutory and tax obligations
Once approved, the company is formally dissolved and ceases to exist.
How to Close a Company in Singapore – Step-by-Step Process
If you intend to close company in Singapore, the strike off process typically follows these steps:
Step 1: Cease Business Operations
The company must stop all trading and operational activities before applying for strike off.
Step 2: Observe an Industry Best Practice Dormancy Period
ACRA does not specify a mandatory minimum dormancy period. However, industry best practice is to demonstrate a clear period of inactivity before submitting a strike off application.
A scalable approach is often used to evidence cessation of business activity, such as:
- 1 quarter out of 4 quarters in a financial year
- 6 months of dormancy (commonly adopted industry benchmark)
- Ideally 1 full financial year of dormancy, which provides stronger assurance to authorities
At PG Secretarial, we apply 6 months as a practical industry standard, with 1 year of dormancy recommended where possible. This helps demonstrate that there are no hidden liabilities, forgotten charges, or undeclared income.
If objections arise during the strike off process, ACRA may request further confirmation of inactivity, and a longer dormancy period (e.g. 12 months) may be required.
Step 3: Settle All Outstanding Liabilities
Before submission, the company must clear all:
- Trade debts
- Employee salaries
- CPF contributions
- Corporate tax obligations
Step 4: Close Corporate Bank Accounts
All company bank accounts must be fully closed prior to the strike off application.
Step 5: Submit Final Tax Filings to IRAS
Companies must complete all outstanding tax matters, including:
- Final Estimated Chargeable Income (ECI)
- Corporate Income Tax Return (Form C / C-S)
- GST filings (if applicable)
Step 6: File Strike Off Application with ACRA
The strike off application is submitted via BizFile+ once all conditions are met.
Step 7: Public Notification Period
ACRA publishes a notice for approximately 60 days, allowing any objections from relevant parties.
Step 8: Final Approval
If no objections are raised, the company is officially removed from ACRA’s register.
Key Compliance Considerations Before Company Closure
Before proceeding with company closure Singapore, ensure that:
- All IRAS tax filings are completed
- Statutory filings are up to date
- There are no outstanding liabilities
- CPF obligations are fully settled
- Bank accounts are closed
Failure to meet these conditions may result in application delays or rejection.
Estimated Timeline to Close a Company in Singapore
Typical Company Strike Off Timeline
- Industry best practice dormancy: 6 months (ideally 12 months)
- Compliance preparation: 2–4 weeks
- ACRA processing & notice period: 3–6 months
Estimated total timeframe:
👉 Approximately 6 to 12 months, depending on company history and objections.
Common Mistakes That Delay Strike Off Approval
Delays often occur due to:
- Insufficient evidence of dormancy
- Outstanding tax or compliance matters
- Active bank accounts
- Unsettled CPF contributions
- Incomplete statutory records
Using professional company strike off services significantly reduces these risks.
Why Engage Professional Company Strike Off Services?
Professional company strike off services help by:
- Assessing readiness based on industry best practice
- Managing ACRA and IRAS requirements
- Ensuring accurate documentation
- Minimising delays and objections
PG Secretarial provides end-to-end support for strike off company Singapore, ensuring a compliant and efficient closure process.
Conclusion
If you are planning to close company in Singapore, following industry best practices—especially around dormancy and compliance—is key to a smooth strike off process. While there is no fixed minimum dormancy period stated by ACRA, demonstrating 6 months to 1 year of inactivity provides strong assurance and reduces the likelihood of objections.
PG Secretarial offers professional guidance grounded in real-world industry practice, helping businesses close confidently and compliantly.