In Singapore, the Accounting and Corporate Regulatory Authority (ACRA) may strike off a company from their register due to various reasons like failure to comply with the norms or inactivity. If your company has been struck off in Singapore but you wish to resume operations, here’s the ultimate guide for you.
We have come up with this detailed article on restoring a struck-off company in Singapore to help your organization restore its operations. In this guide, we have detailed the process of restoration and recommended specific steps that will help your firm regain its legal status.
It’s important to seek company liquidation and strike-off support from experts as they can put your business back on track.
How to Strike-Off a Company
- Ceased Operations: To strike off a company by ACRA, it must have ceased its business activities. This cessation indicates that the company is no longer engaged in trading or commercial undertakings and is essential for the strike-off application.
- No Outstanding Liabilities: According to the companies striking off regulations, the company should have no outstanding liabilities, including debts, charges, or fines, towards any entity or the government. This includes clearing all outstanding tax liabilities with the Inland Revenue Authority of Singapore (IRAS)
- No Existing Assets: All assets must be disposed of before applying for a strike-off. The company should not possess any tangible or intangible assets, ensuring it leaves no unresolved matters that could affect stakeholders.
- Unanimous Shareholder Approval: The decision to strike off must be approved by all shareholders. This consensus ensures that all parties involved with the company agree with its closure.
- No Ongoing Legal Proceedings: Striking off a company must not be involved in any legal proceedings inside or outside Singapore. Legal entanglements could complicate the strike-off process and hence need to be resolved or concluded beforehand.
Striking off of companies that failed to file Ars
Should You Restore a Struck-Off Company or Start a New One?
Although you can start a new company in Singapore, restoring your previous one can be advantageous in several ways.
- Retain your UEN: If you feel that the name and UEN (Unique Entity Number) of your previous company are valuable, restoring it allows you to retain both. If you start a new company, you’ll lose the previous ones.
- Minimized disruptions: If the previous company had no financial or legal issues, restoring it allows you to resume business quickly without complications.
- Access to existing assets: When you restore a struck-off company, you can continue growing your assets that were previously tied to the company.
Deadline for Restoring a Company That Has Been Struck Off
Eligibility for Restoration after Being Struck Off
While there’s a provision for restoring your business after being struck off, not all companies are eligible for this restoration. Generally, businesses that have been struck off within the last six years can apply for this facility. However, the company must fulfill the following criteria to be eligible for restoration.
For restoration, we need to first understand the below:
- Method under which the Company was struck off.
- Reason for restoration of the Company.
- Date of Strike off.
Court-ordered restoration
- Application to the Court under option 1 can be made by any former Shareholder or Director.
- After the court order has been obtained, it must be submitted to ACRA via BizFile+ for the company to be restored.
- The application processing time is 5 working days to process. There is no filing fee, and the only information required to complete the transaction are the company UEN and copy of the Court Order.
Administrative restoration
Only former directors or shareholders can apply to ACRA for this process.
The restoration is intended for entities that were removed by ACRA, not the entities that had voluntarily applied for Striking off.
In some cases, even former shareholders can apply for court-ordered restoration if they can show a financial interest in the revival of the company. It’s essential to ensure that all outstanding documents, taxes, and obligations are up-to-date before applying for restoration. In case your company fails to meet these requirements, restoration might be denied.
Steps to Restore a Struck-Off Company
1. Check eligibility with ACRA
2. Prepare and submit the required documents
Gather all the necessary documents before applying for restoration. These include:
- Evidence of tax compliance and other regulatory obligations
- The financial statements and other filings that were overdue
- A declaration confirming that the company doesn’t have any outstanding obligations or liabilities
3. File a Restoration Application via BizFile+
4. Clear Outstanding Fees and Penalties
5. Review and Decision
After a business submits the application, ACRA will review the case. During the review, they may request additional documents or clarifications. ACRA will evaluate the current standing and compliance of the company and come to a decision. If everything is in order, ACRA will approve the restoration.
The entire process of restoring a struck-off company may take one to two months. However, if any documents are missing or non-compliance issues arise, further delays may complicate the process. It’s wise to consult professional teams of experts for corporate advisory services and restore your business.
Conclusion
While it is possible to restore a struck-off company in Singapore, the process is complex and calls for expert advice. During the process, businesses need to demonstrate their compliance with regulatory requirements.
If your company has been struck off, don’t panic. Consult the IMC Group, a reputed team of professionals providing corporate secretarial services in Singapore. These experts can guide you to restore your company so that you can resume your business activities in Singapore. With complete assistance to ensure compliance and adhere to the legalities, businesses can confidently continue operating in the dynamic business environment in the country.
