Why do you think a company strike-off? Because they have won a lottery? Or because they were just trying their luck by setting up the business?
No marketer shut down their business with a happy note. There is always a bitter truth behind the closure of a business.
This often happens when the company finds that things are not working properly or they don’t have any other backup plan to accelerate the growth of their business. After trying every single possible option, they plan to strike off their name from the registration list. It’s hard but they have to.
However, according to governing bodies a company can strike off in two different ways. They can either go for “forced struck-off” or choose “voluntary struck-off”.
What is the difference between the two?
In voluntary strike-off, the companies may apply to dismiss their name from the registration list but ultimately end up dissolving the act.
Whereas, in forced strike-off, the companies are forced to withdraw their name from the list by hook or by crook.
In both circumstances, the company has to follow some norms without which it is impossible to cancel its registration.
To understand more, you may even approach the financial advisers who are equipped with knowledge regarding striking off companies and about company incorporation Singapore.
Any idea of what they are?
Here we have listed down the criteria that need to be fulfilled before winding up your business. Let’s recall them.
Under which criteria a company can strike off in Singapore?
- When the company has failed to commence its business once it was initialized. Now, this can happen due to plenty of reasons. For example, the business was not able to establish maybe because there was a financial crisis at the very beginning. They may have failed to invest in certain things that are the key requisites of the business. Or else, the targeted audience hasn’t found them reliable to hire their services or try out their products.
- The company has cleared out all its debts owed to Inland Revenue Authority of Singapore (IRAS), Central Provident Fund (CPF) Board or to your other government bodies available in Singapore.
- There are no extra charges left to be paid. Additionally, there are no pending regulatory actions that need to be accomplished.
- The company does not have any existing assets and liabilities at present and no tendency of appearing in the near future. If there any, your strike-off would be on hold.
No one wants to strike off their business from the market. That’s the reason why the company incorporation Singapore experts always recommend to follow certain guidelines.
Just scroll your eyes over the following guidelines before skipping them.
3 Things to consider while forming a company
1. Be ready with your regulatory filings: Being under the surveillance of Singapore government bodies, it is important to be prompt with your regulatory filings. These are the official documents that should be sent to the authority on time to avoid risks.
- Submit your financial statement before every financial year: It is again important to submit the entire financial statement of your business activities at the end of every financial year. The year you miss will be red marked by the authority.
- Pay your tax timely: Singapore taxation system involves a single-tier tax system that includes the corporate tax. It is more favorable for the companies who have just initiated their business as they do not have to pay any tax for the next two months.
These three things might look small, but have a huge contribution to the existence of your business.
However, if you still feel you need to strike off company Singapore you may talk to your expert and get it done soon.
All the best for your new venture!