There are a number of unfortunate reasons for a company’s close down. Now unless it is an absolute necessity, no company would like to go through or make up for this decision.
Now when it comes to a close-down, company strike off or company dissolving is considered to be a suitable and much better procedure to opt for. Be it any part of the world, this procedure is the most recommended when it comes to a company close down.
However, if you are deciding on striking off company Singapore or in any other location then you must learn about the good that comes in your way for choosing this option.
Read till the end to find out the benefits that you can gain out of striking off a company.
1. It is a rapid implementation procedure
Strike Off can be a quick implementation procedure if the company is dormant and does not have any creditors. It is a speedy procedure in such a scenario as the company would be pulled off the register within a period of three months.
However, in case of company posses any sort of outstanding creditors, then a three months notice should be provided to them prior to submitting the application for strike off.
2. No need for investigating directors conduct
If you decide to dissolve your company then one of the greater goods that comes in your way is that it does not involve any messy formalities. For instance, after the strike off of your company is completed, there is no formal investigation done.
This prevents the risk of facing accusations of illegal trading. Unless the said company is later revived by the creditor.
3. It is a cost-effective procedure
One of the highlights of opting for a strike-off procedure is because of its cost-effective nature. The cost involved in submitting a Strike Off application is minimal.
Even if you plan on seeking help from a professional agent or service, the process of dissolution of the company is way less than the alternate process such as liquidation of the company.
4. No additional requirement for filing annual accounts and returns
Once you are through with the process of Striking Off your company, there is no need for filing any ongoing annual reports of returns and accounts with the authorities.
However, if the company is left as dormant instead of being struck off, the suitable returns and accounts should be filed. The financial penalties incurred shall be charged on the directors if the filing has not proceeded.
Even though liquidation of the company is another close down options that company’s go for, striking off seem to be far more logical and practical option to choose. So if by any chance there comes a day of a close down don’t forget to assess the benefits that you can still get out this realistic procedure.
Whether it is the strike off company Singapore or in other place, the advantages remain unchanged.