While some businesses continue to strive in the Singapore market for decades, some have to meet their end due to their insurmountable debts. This is when liquidation or winding up a company takes place. Winding up may be voluntary or compulsory.
Voluntary Liquidation in Singapore
In voluntary winding up of company in Singapore, the company may be liquidated voluntarily by either its members or creditors. These two types of voluntary winding up are called Member Voluntary Liquidation and Creditor Voluntary Liquidation.
Member Voluntary Liquidation in Singapore
If a company is solvent, the company’s members or shareholders may apply for the Member Voluntary Liquidation Singapore (MLV). This can only be applied if majority of shareholders (75% or more) agree on the business closure and they must also form the opinion and declare that the company will be able to settle all its liabilities within 12 months of commencing MLV.
A liquidator will then be appointed to look into the affairs of the company and settle all the necessary procedures.
Creditor Voluntary Liquidation in Singapore
If a company is insolvent, directors and shareholders may consider closing down the company by the way of Creditor Voluntary Liquidation. This method is initiated by the company to hold a general meeting and seek approval from majority of creditors (75% or more) on the business closure. Upon agreement, the company will then appoint a liquidator to settle all the necessary procedures required.
If you have decided to close your Singapore company, Acres Advisory consultants are highly experienced in Member Voluntary Liquidation and Creditor Voluntary Liquidation processes for companies in Singapore. Our dedicated consultants will assess your situation, recommend the best course of action and assist you throughout the whole process.