How to Close a Company in Singapore

Singapore’s fast-moving, pro-business environment makes it an ideal country to start and operate a company. However, there may be instances when you need to close a business. While never an easy step, closing down a company responsibly is a vital part of the business lifecycle.

As you prepare for cessation, managing your final financial obligations is key, and the method you choose to close the company depends on your company’s financial standing. This article will guide you through the proper steps you should know and possibly save you from potential legal or tax complications.

The process of closing a business in Singapore can be complicated. We share how using a Wise Business account can simplify this process by helping you handle outstanding supplier payments, settle overseas invoices, and manage international transactions efficiently right up to the point of closure.

Table of contents
Reasons for closing a company in Singapore Key question to answer when closing a company Two ways to close a company in Singapore Winding up (or liquidation) Final steps to closing a company in Singapore Can you keep your company dormant?

Reasons for closing a company in Singapore

Closing a company is a natural part of the business cycle. Some businesses face challenges such as poor cash flow, weak product-market fit, or declining profitability, while others close due to shifting priorities or personal circumstances.

In certain cases, closure is a legal necessity. For example, if a company becomes insolvent and cannot pay its debts, directors are obliged to wind it up, or creditors may apply for court-ordered liquidation. Whatever the reason, recognising when to cease operations helps prevent further financial and emotional strain, allowing business owners to move forward responsibly.

Key question to answer when closing a company in Singapore

Before you begin the closure process, you should understand your company’s financial health to ensure the process is completed lawfully.

Is your company insolvent?

The first step in closing a company is to assess its financial position. Your company’s financial health determines whether you should apply for striking off or proceed with winding up.

A company is considered insolvent if it fails either of two tests:

• Balance Sheet test, where liabilities exceed assets, or
• Cash Flow test, where the company cannot meet its current debts

Under Singapore law, a company is also deemed insolvent if it fails to pay a debt of S$15,000 or more within three weeks of a formal demand¹.

Only insolvent companies are required to be wound up, allowing their remaining assets to be sold to repay creditors. Solvent, debt-free companies may choose to strike off their name from the Accounting and Corporate Regulatory Authority (ACRA)’s register or voluntarily wind up their affairs. Determining your company’s financial standing early helps you select the right path and avoid future legal complications.

Two ways to close a company in Singapore

In Singapore, you can close your company either by striking off or by winding up the company.

Striking off (or deregistration)

Striking off is the final step after you have completed debt payments, asset disposal, and settled all other company affairs. It is a popular option for limited and private limited companies due to its simplicity and relatively quick turnaround, usually taking around three months. The application is submitted to ACRA, which reviews the request and removes the company’s name from the register upon approval.

Key criteria for striking off a local company

Before you file for strike off, you should ensure the following²:

• The company has not started business or has ceased trading
• No outstanding debts are owed to IRAS, CPF Board, or any other government agency
• No outstanding charges or involvement in legal proceedings or regulatory actions
• No existing assets or liabilities, including contingent ones
• All directors should authorise the applicant to submit the striking off application

How to apply for strike off

To apply for striking off², a company director or secretary must submit an online application through the BizFile+ portal. No filing fee is required for the application. If there are no objections, ACRA typically processes the strike off within five working days.

Once processed, the company’s name will be published in the Government Gazette in a First Gazette Notification. If no objections are raised within 60 days, the company name, along with its strike off date, will be published in the Government Gazette. Any objections must be resolved within two months, or the application will lapse automatically.

The entire process may take at least 3 months.

Winding up (or liquidation)

Winding up is a formal process in which a company’s assets are sold and converted into cash to settle its debts and liabilities. It involves appointing a professional liquidator to manage the process and ensure compliance with legal requirements.

In Singapore, there are three types of winding up³:

1. Members’ voluntary winding up for solvent companies
2. Creditors’ voluntary winding up for insolvent companies
3. Compulsory winding up as ordered by the court

Members’ voluntary winding up

A members’ voluntary winding up is chosen when the company is solvent and able to pay all its debts within 12 months. A liquidator must be appointed¹.

To proceed with a members’ voluntary winding up, the majority of directors must sign a Declaration of Solvency, confirming the company’s financial ability to meet its obligations. An Extraordinary General Meeting (EGM) should be held to pass a special resolution to wind up the company, and a liquidator has to be appointed. The liquidator files the resolution with ACRA and publishes a notice in Singapore newspapers. They will then convert the company’s assets into cash, settle outstanding debts, and distribute any remaining surplus to shareholders. The company is officially dissolved three months after the liquidator submits the final return to ACRA.

Creditors’ voluntary winding up

A creditors’ voluntary winding up is chosen if the company is determined to be insolvent and unable to pay its debts within 12 months¹. Unlike a members’ voluntary winding up, creditors play a key role in this process.

After the directors file the necessary declaration, they must convene a meeting with creditors within one month to present the company’s financial position. During this meeting, creditors decide whether the company should proceed with winding up and nominate a liquidator to oversee the sale of assets and distribution of proceeds. This ensures that creditors’ interests are properly represented throughout the process.

Compulsory winding up by court order

Compulsory winding up takes place when the court orders the liquidation of a company¹, usually after an external party such as a creditor, shareholder, or judicial manager files an Originating Summons in court. Common grounds for this include insolvency, failure to file statutory reports or hold statutory meetings, not commencing business within one year of incorporation, or if the company is used for illegal purposes.

Once the order is granted, the court appoints a liquidator or the Official Receiver to take control of the company’s affairs, advertise the winding up of the company in at least 4 local newspapers, realise its assets, and distribute the proceeds to creditors in accordance with Singapore’s insolvency laws.

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Final steps to closing a company in Singapore

Closing a business goes beyond completing legal paperwork. You should address the emotional, financial, and administrative tasks that bring true closure.

Fulfil taxes and financial obligations

Before your company can be formally dissolved, all outstanding tax obligations and liabilities must be cleared with the Inland Revenue Authority of Singapore (IRAS)⁴.

You will be required to:

• Submit final income tax returns (Form C-S/C)
• Apply for cancellation of Goods and Services Tax (GST) registration
• Only close the company's bank account after all outstanding tax matters are settled, as IRAS will not pay tax credits to closed accounts

Support employees and fulfil commitments

As part of the closure process, it is essential to handle employee matters and contractual obligations with professionalism. You should:

• Notify employees of the impending closure early
• Develop a clear communication plan to guide them through the transition
• Ensure all outstanding salaries, including unused annual leave and notice pay, are fully settled in accordance with Singapore's employment laws

You should also settle outstanding bills with service providers such as internet or phone companies, providing them with a final service date in advance. Likewise, terminate contracts with suppliers and partners responsibly, observing the required notice periods to maintain goodwill and safeguard your business reputation.

Plan client communications and protect digital assets

Keep your clients informed with clear, transparent communication about your company’s closure. Where possible, honour existing orders or offer refunds to maintain trust and goodwill.

Once client matters are resolved, turn your attention to your digital assets. Back up all website content, design files, and code, then cancel third-party services or subscriptions linked to the business. Finally, close your social media accounts and post a final message on your website explaining that operations have ceased. Doing so ensures a respectful conclusion to client relationships and protects your digital assets from misuse after closure.

Return capital to shareholders

Once all outstanding debts and liabilities have been fully settled, any remaining assets should be distributed among the company’s shareholders, in proportion to their interests in the company’s share capital. This ensures that the company’s final assets are returned fairly and in accordance with the rights outlined in its constitution¹.

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Can you keep your company dormant?

A dormant company remains registered but does not actively trade or generate income. If your business slowdown is temporary, you may choose to keep the company dormant rather than close it entirely. To qualify, it should have no revenue or income within the financial year⁵. This option allows you to preserve the company’s structure and branding while pausing operations until conditions improve.

A dormant company with total assets below 500,000 SGD is exempted from preparing financial statements⁶.

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Conclusion

Closing a company in Singapore involves several important steps. It starts from assessing your financial position and choosing the right closure method, to fulfilling tax obligations, looking after employees, and settling final commitments with clients and partners.

While bringing a business to an end can feel daunting, it doesn’t have to be the end of your entrepreneurial journey. Many business owners use this time to pause, take stock, and return stronger by refining their ideas, exploring new opportunities, and starting afresh with renewed purpose.

If you’re planning your next chapter, Wise Business can help you begin on solid financial ground. With low, transparent fees and no hidden charges, Wise makes it easy to manage your money across borders and focus on growth, keeping costs low and boosting your profits.

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Sources:

1. About Liquidation or Winding Up | Ministry of Law Singapore
2. Striking Off a Local Company | ACRA
3. Closing a Local Company | ACRA
4. Companies Applying for Strike Off/to Cease Registration | IRAS
5. Dormant Companies | IRAS
6. Phase 2 of Companies (Amendment) Act 2014 FAQs | ACRA

Sources checked on: 1 Nov 2025