The company may apply to the Accounting and Corporate Regulatory Authority (ACRA) to strike its name off the Companies Register if it is no longer carrying on business. This process is known as “striking off” a company.
Pay Outstanding Taxes
To successfully apply to ACRA to be struck off, the company must not have any outstanding tax liabilities with IRAS, Otherwise, IRAS may object to the application to strike off.
In this regard, companies should ensure:
- All outstanding Income Tax Returns (Form C-S/ C) have been submitted. If the company is filing Form C, the accounts and tax computation must also be submitted;
- Accounts and tax computations have been submitted up to the date of cessation of business (i.e. for the period(s) where IRAS has not yet issued an Income Tax Return);
- All outstanding tax matters* have been settled with IRAS (e.g. answered all queries raised by IRAS, ensured all assessments are finalised and paid etc); and
- GST registration has been cancelled and there are no outstanding GST matters.
*Please do not close the company’s bank accounts until all outstanding matters are settled. Once the company’s bank account is closed and there is a tax credit owing to the company, IRAS will not be able to pay over the tax credit to a third party (e.g. director, shareholder). When the company is dissolved, the tax credit due to the company will be paid over to the Insolvency and Public Trustee’s Office (IPTO). The shareholders of the defunct company may approach IPTO if they wish to claim the tax credit.
For more information on the company’s tax filing obligations before applying for strike-off, please refer to IRAS’ website.