One requirement of starting a business is registered. In the same way, when you no longer need the company for various reasons, you will need to deregister it. It will still be registered even when your business is dormant or not trading. That means you must meet all legal obligations, including filing your annual reports and payments. Therefore, if you no longer need the company or circumstances force you to dissolve it, you must deregister it to avoid these expenses and expectations. You will need to go through the process of deregistering it to ensure it is completely dissolved. Considering company secretarial Singapore can simply the dissolution process and ensure you meet the requirements. There are many questions that many people ask at this point. We have compiled a list of these questions to help you understand the process of dissolving and the costs.

What are the reasons for deregistering?

You would want to dissolve your company for many reasons, and these reasons are not limited to specific businesses. There are stages in the organizations that leave deregistration as the best and only option. Such reasons could include trades where the company has become dormant or is no longer trading. Members of the board and shareholders can also agree to dissolve the company due to poor finances and a change of interests.

If there is a takeover, the solution may be to deregister the company to give way for a new one. Therefore, other smaller companies involved during the takeover will no longer be trading, which means dissolving them. In other cases, the owner or shareholders may want to retire. When there is nobody to succeed them, the only option may be to deregister the company.

What will happen when you deregister the company?

Deregistering a company means it will no longer exist in the registers. Anything the company does after deregistration will not be recognized legally. Once you have applied to deregister the company, the legal financial regulator will make a public announcement that the company no longer exists. Therefore, someone else can legally take the name. Before deregistering, it is crucial to know the consequences and the proper steps. Sangfor can help you understand this.

What is the cost of deregistering a company?

Before you are able to deregister your company, you must first pay all the outstanding debts and legal fees. You must apply for deregistration in advance to give the regulatory body enough time to review your financial obligations. Any fees you incur after the date of application will not be included in your arrears. Therefore, the cost of dissolving the company depends on your outstanding debts and fees.

How can you voluntarily deregister the company?

There are guidelines for company owners who want to deregister their businesses. However, the general guidelines dictate that all members agree to dissolve the company. The company should also not be in trade during the decision to deregister. Another thing should be that the company’s assets should be less than $1,000. The company must also pay any outstanding debts and handle liabilities to be allowed to deregister. It is also mandatory for the company to handle all the legal issues it might have before dissolution.

What responsibilities does the company owner have during deregistering?

There are certain obligations that you must meet before deregistering your company. Your responsibilities include ensuring the assets have been distributed to shareholders before the dissolution. It would be best if you informed all the members that you want to deregister the company before lodging the application. Another vital thing you must do is to clear all the outstanding fees and payments, including wages. Ensure you file your final returns and close all the ban accounts registered under your name.

What is the process involved?

When deregistering a business, here is the process to follow:

  • Clear all your outstanding payments and fees
  • Ensure you are eligible for deregistering
  • Close all the bank accounts under the company’s name
  • Ensure all assets, including equipment and vehicles, are not registered with the company’s name
  • Cancel the licenses ad subscriptions
  • Fill the form

After your application is approved, the regulator will announce your dissolution, and the company will be fully deregistered after two months.

Can a financial regulator dissolve a company?

The financial regulator can deregister a company. Deregistering is one of the powers granted that ASIC can deregister if the company has not been paying its annual fees for more than a year. It may also deregister the company if it fails to respond to compliance notices. A company can also be deregistered if it has not lodged documents for more than 18 months. In that case, ASIC believes the company is no longer trading. Failure to meet legal obligations risks deregistration or liquidation by the ASIC.

To deregister or liquidate?

There are various alternatives to deregistering a company, such as liquidation. However, this option will depend on a variety of factors. Remember, deregistering is only possible for companies that meet the eligibility. If yours is insolvent, deregistering is not an option. Deregistering is suitable for small companies without liabilities or having few assets.

What will happen to the property?

It is crucial to distribute your company assets before dissolution. Once you are deregistered, the financial regulator will handle the assets that have not been distributed. Therefore, ensure you deal with all the assets before you apply for deregistration.

Can someone stop a company from deregistration?

Any person has the right to stop the deregistration of your company. For example, a creditor can stop the dissolution if you still owe them money. You must know that through the court order, the creditor will still ask for restoration even after deregistration. Therefore, ensure you solve issues with your creditor before deregistering.

Conclusion

Deregistering your company may be the last option you might have. However, it includes a process and various obligations to ensure your company is struck off the register. You will have to meet the criteria, which include paying off all outstanding debts and fees, distributing assets, and ensuring every member has agreed that deregistering the company is the best option. There are many reasons for dissolving a company. So, you have come to this decision, ensure it I the right one and follow the procedures to deregister it.