Closing a Local Company

Kothree provides complete company wind-up services in Singapore to assist businesses in legally and smoothly ending their operations. Our team of experienced professionals can guide you through the complex legal and regulatory processes of dissolving a corporation in Singapore.

Our wind-up services include preparing appropriate documents like as resolutions and notices, as well as dealing with relevant authorities and creditors. We can also advise you on the most efficient and cost-effective way to wind up your business, whether through voluntary liquidation, striking off, or other means.

Striking off

A firm may apply to ACRA to have its name removed from the Register. If there is reasonable cause to think that the company is not carrying on business and the company meets the conditions for striking off, ACRA may approve the application.

Member’s Voluntary Winding Up

A firm may choose to wind up its operations voluntarily if the directors feel that the company will be able to pay its obligations in full within 12 months of the winding up’s initiation. The company will appoint a liquidator, or temporary liquidator, to wind up its business and file the requisite notices under the Companies Act / Insolvency, Restructuring, and Dissolution Act.

Creditor’s Voluntary Winding Up

In some circumstances, such as being unable to pay its debts, a firm may be wound up by a Court Order. The Court may appoint a liquidator to wind up the company’s affairs. If no liquidation is appointed by the Court, the company’s liquidator is the Official Receiver.

The liquidator will file all relevant notifications under the Companies Act / Insolvency, Restructuring, and Dissolution Act.

A receiver may be appointed over the property of a corporation, for example, to enforce a charge for the benefit of the firm’s debenture holders.

A company’s property may be placed under receivership, for example, if a receiver is appointed to enforce a charge for the benefit of the company’s debenture holders

Simplified Insolvency Programme (SIP)

The Simplified Insolvency Programme (SIP) offers micro and small businesses easy, quick, and low-cost procedures to help in the winding up of the firm or debt restructuring. The SIP has two distinct programs.

(i) The Simplified Winding Up Programme (SWUP) streamlines the creditors’ winding up procedure for micro and small businesses. This is applicable when the company is insolvent, intends to cease operations, and chooses to be wound up.

(ii) The SDRP (Simplified Debt Restructuring Programme) allows micro and small businesses to restructure their debts while remaining viable in order to turn the firm around.

Micro businesses have yearly revenue of less than $1 million, whereas small businesses have annual revenue of less than $10 million.

In Kothree, we recognize that winding up a business can be a stressful and emotional process for business owners, which is why we strive to provide individualized and helpful services throughout the process. Our goal is to make the wind-up procedure as simple and painless as possible so that you may focus on your next business venture.

Whether you own a small firm or a huge enterprise, Kothree can provide customized wind-up solutions to match your specific requirements. Contact us immediately to learn more about how we can help you with Singapore firm wind-up.