You may be wondering what steps to take in order to liquidate an international company if you are located in Singapore. While there may be many reasons for this decision, it is essential to remember that it can be difficult and requires professional assistance.
How to cancel a trade license in Singapore
When you close your Singapore-based business, you must cancel your trade license. You must follow these steps to wind up your Singapore business operations.
To take your company’s name from the official register, you must notify the Accounting and Corporate Regulatory Authority. This only applies if your local business is included. This is the fastest and easiest way to close a trade. However, you must meet these criteria:
A Your business must have ceased all trading and corporate operations
The company must not be in debt or tax-exempt from the Inland Revenue Authority of Singapore (IRAS).
A You cannot owe money to creditors. You cannot also have accounts receivables to customers on the ACRA charge registry
You are not allowed to be involved in any international or local lawsuits or legal disputes.
A Your company cannot be subject to any regulatory actions or disciplinary procedures
A Your company must have no tangible assets or outstanding debts (liabilities).
The Directors of the ACRA must approve your request to close your business and strike your legal name from the official register.
How to cancel your business license
Your corporate GST license must be canceled with the IRAS as your business won’t need it. If your application is approved, generally speaking, your business will be removed from the official register within five to six months. Online filing of the “Cessation Of Business” transaction is required if you are a sole proprietorship, partnership, or another type of business.
You can apply to the ACRA to have your company liquidated or dissolved if you are an LLC or LLP. The ACRA will assign a liquidator for your company as part of this process. This professional will oversee the formalities of closing operations, closing assets, paying off debts, and distributing equity to shareholders and other stakeholders. After you have dissolution your company and its functions officially, the next steps are taken:
Terminating employment – You’ll need to alert your employees about the possibility of them losing their jobs within a few weeks. Although not mandatory, many companies will assist employees in finding work after their official employment ends. Your HR department should also do this. All pending salaries, benefits, and unutilized leave must be paid. You should consult your collective or contractual agreements to determine the correct amount of compensation you must pay your employees.
A Distributing corporate asset – If you are a sole proprietor, all your business assets legally belong to yourself. Your company is not immune from liability. However, creditors may lawfully order you to sell the assets to repay your debts. Honestly, any remaining money or assets is yours.
Assets belong to either you or the partnership if you own a partnership. If you sell your business and the person receiving reimbursement for your corporate debts doesn’t get it, your assets will legally go to that person. For more information, refer to Section 44 of The Partnership Act.
All assets belonging to a corporation (company) are yours. They are not yours to take. Only exceptions are made if the company has no outstanding debt or paid all of its obligations. You can legally claim any remaining corporate assets in this case. Remember that your corporation must keep the official records and books for no less than five years from the date it is officially removed.
License cancellation in Singapore
You must ensure that there are no outstanding taxes or debts if you wish to cancel your Singapore business license. This includes any outstanding business loans. You must inform creditors about the closure of your business. Also, tell your creditors when, how, or in what amount you will reimburse them. Global Corporate Advisory Services is an expert in these types of procedures.
To determine which creditors’ claims you are legally allowed to pursue, it is a good idea to seek legal advice. Also, ensure that your company does not owe taxes to any government agencies. These methods will help you determine this:
To view all your taxes, go to myTaxPortal This includes GST and corporate taxes.
Contact the IRAS 24-hour toll-free answering service. A representative will be available to answer any questions you may have about your GST and Corporate taxes.
It is possible to wind up a Singapore business.
It is possible to wind up a Singapore business, as you can see from the information. It is essential that you hire a global business consultant to help you navigate the complexities of liquidating your company. They can help you wind down a Singapore business by taking away the stress and navigating the complexities of corporate law.