Closing a business is often a strategic pivot or a natural conclusion to a successful venture. However, in Singapore’s robust regulatory environment, “closing shop” requires more than just stopping operations. To avoid penalties and ensure directors remain in good standing with the Accounting and Corporate Regulatory Authority (ACRA), a formal legal process must be followed.
At Hallmark Corporate Services, we guide business owners through the two primary routes of closure: Striking Off and Winding Up. Here is your definitive 2026 guide to closing your Singapore business legally.
1. Striking Off vs. Winding Up: Which is Right for You?
The first step is determining the status of your company’s assets and liabilities.
- Striking Off: This is the fastest and most cost-effective method. It is designed for solvent, small-to-medium companies that have ceased trading and have no outstanding debts or legal proceedings.
- Winding Up (Liquidation): This is a formal, more complex process where a liquidator is appointed to realize assets and pay off creditors. This is mandatory if the company is insolvent or has significant complex assets to distribute.
2. The Step-by-Step Process for Striking Off
For most entrepreneurs, striking off is the preferred path. To be successful, you must satisfy the ACRA striking off criteria:
Step 1: Cease All Business Activities
The company must stop trading, selling stock, or providing services. You should also terminate all utility contracts, office leases, and insurance policies.
Step 2: Settle Tax Obligations with IRAS
You cannot close a company with outstanding tax issues. In 2026, IRAS tax clearance for company closure requires:
- Filing the final Form C-S/C (Corporate Income Tax Return) up to the date of cessation.
- Cancelling your GST registration and filing a final GST F8 return.
- Ensuring no outstanding tax queries remain.
Note: As of August 1, 2026, IRAS strictly requires all final financial statements for striking-off companies to be submitted via the myTax Portal digital services.
Step 3: Clear Employee and CPF Obligations
Ensure all employees are properly retrenched according to Ministry of Manpower (MOM) guidelines. All outstanding CPF contributions must be paid, and your CPF account must be closed to avoid late payment penalties.
Step 4: Obtain Director and Shareholder Consent
A Board Resolution must be passed, followed by a Special Resolution from shareholders authorizing the application for striking off.
Step 5: The BizFile+ Application
The application is submitted online via ACRA’s BizFile+ portal. Once submitted, ACRA will review the application. If approved, the company’s name will be published in the Government Gazette.
3. The Waiting Period: The Gazette Notifications
The striking-off process takes approximately 4 to 5 months.
- First Gazette Notification: After approval, ACRA publishes the intent to strike off. This allows creditors 60 days to object.
- Final Gazette Notification: If no objections are received, a final notice is published, and the company is officially dissolved.
4. Crucial Reminders Before You Close
- Bank Accounts: Do not close your corporate bank account until you have received all tax refunds or settled all final payments. If you close the account too early, any remaining credits may be transferred to the Public Trustee as “unclaimed money.”
- Record Keeping: Even after deregistration, you are legally required to keep your company records (including tax and accounting files) for at least five years.
- Director Liability: Striking off does not absolve directors of their liabilities. If the company is found to have committed an offense before closure, the officers can still be prosecuted.
Why Professional Assistance is Vital
Managing the timeline between IRAS, ACRA, and the CPF Board can be overwhelming. A minor error in your final tax computation can delay the process by months. Hallmark Corporate Services provides end-to-end support, acting as your liaison with regulatory bodies to ensure a “clean break.”