7 Things to Check Before Closing Your Company

After years of running a business, there may come a point when you decide it is time to stop. Perhaps the business is no longer trading, you have moved on to a new venture, or the company simply no longer serves a purpose. Whatever the reason, closing the business can feel like the final step in a long journey.

For many Singapore business owners, the first thing that comes to mind is ACRA. You may think that once the company is struck off, everything is finished. But there is another important part of the story: IRAS.

Closing company is not simply an ACRA process. Before you apply for strike-off, you need to make sure your company's tax matters are properly settled with IRAS too. Otherwise, what looked like a straightforward closure could take much longer than expected.

1. You Have Decided to Close. What Happens Next?

Imagine that your company has stopped trading. There are no more customers, no new invoices and no plans to continue the business. You have also settled your suppliers and other outstanding obligations.

At this point, you may naturally want to proceed with closing company as quickly as possible. For an inactive company that meets the relevant conditions, applying for a strike-off with ACRA may be an option. However, one important condition is that the company must have settled its outstanding matters. This includes matters beyond the company registry itself.

That is where IRAS comes in. Before applying for strike-off, companies are required to settle their outstanding tax liabilities and obligations with IRAS. If they do not, IRAS can object to the strike-off application. So, rather than thinking about closing company as one final form to submit, it is better to think of it as a series of final checks.

2. ACRA Is Only One Part of the Process

ACRA manages the company's registration, but that does not mean ACRA is the only authority you need to deal with when closing company. Your company may still have corporate income tax matters, GST obligations, outstanding assessments or correspondence with IRAS. These need to be resolved before the closure can properly move forward.

IRAS states that a company's tax liabilities and obligations are considered settled when its required Corporate Income Tax Returns have been filed up to the date of business cessation, outstanding tax matters have been resolved and, where applicable, GST registration has been cancelled with no outstanding GST matters.

This is why a company can be inactive from a business perspective but still have compliance work left to complete. The business may have stopped earning money, but its administrative and tax responsibilities do not automatically disappear on the same day. These obligations should therefore be addressed as part of the closing company process.

3. Check Your Outstanding Tax Matters First

This is probably the most important check before submitting a strike-off application.

Start by asking a simple question:

Does IRAS still have anything outstanding for my company?

You may need to check whether all required Corporate Income Tax Returns have been filed, whether tax assessments have been finalised, and whether there are outstanding tax liabilities, penalties or queries from IRAS.

For companies applying for strike-off, IRAS provides digital services through myTax Portal to check Corporate Income Tax filing status, notices and letters, account balances and payment arrangements.

There is also an important 2026 update to be aware of. From 1 August 2026, IRAS no longer accepts financial statements and tax computations through other submission modes for the relevant Corporate Income Tax filing process. These submissions are made through IRAS's digital services. This makes it even more important to plan your final tax filing rather than leaving it until the company is already halfway through the closure process.

4. Don't Forget GST

If your company is GST-registered, closing company involves another important step. Stopping sales does not automatically cancel your GST registration. You need to make sure the GST registration is cancelled and that there are no outstanding GST matters before proceeding with the strike-off.

There can also be final GST considerations after business activities stop. For example, your final GST return may need to account for supplies where goods or services were delivered before cancellation but the invoice or payment happens afterwards. This is an important consideration when closing company.

IRAS requires businesses to account for the relevant output tax in the final GST return where applicable. So if your company is GST-registered, do not simply stop issuing invoices and assume the GST side is finished. Make sure the final GST position has been properly reviewed and settled as part of the closing company process.

5. What Happens If IRAS Objects?

Now imagine you have already submitted your strike-off application to ACRA, only to receive a notification that IRAS has objected. This does not necessarily mean your company can never be closed. It means there is an outstanding tax matter that needs to be resolved first.

According to IRAS, if it lodges an objection, the company has two months from the date the objection is lodged to resolve the outstanding tax matters. If the objection is not resolved within that period, the ACRA strike-off application will lapse and the company will need to submit a new application after the objection has been cleared. This is where an apparently simple closure can become frustrating. Instead of moving towards dissolution, you may have to go back, identify what is outstanding, provide the required information, settle any liabilities and then restart part of the process.

6. Your Final Accounts Still Matter

When a business stops trading, it can be tempting to stop paying attention to the accounting records too. But your final accounts are still important when closing company, because IRAS may need financial statements, tax computations and Corporate Income Tax Returns covering the relevant period up to the date the business ceased. The exact filing requirements depend on the company's circumstances.

This is one reason it helps to keep your accounting records organised throughout the life of the company. If you have been using an accounting platform such as Xero, your transaction records and reports can provide a useful foundation for preparing the final accounts. However, having accounting software does not by itself complete your tax or strike-off obligations when closing company.

The important part is making sure the underlying records are complete, accurate and ready for the final reporting process. And before you close the company's bank account, it is worth checking whether there are any tax credits or refunds still due. IRAS advises companies not to close their bank accounts until all outstanding matters are settled, as recovering a tax credit after dissolution may become more complicated. Taking these steps can help make the closing company process more orderly and avoid unnecessary complications later.

7. Closing Company Doesn't Mean Destroying the Records

Finally, there is one thing business owners sometimes overlook when closing company: your company's records still need to be kept after dissolution. It can be tempting to think that once ACRA confirms the company has been struck off, you can delete old accounting files, clear out company documents and move on.

However, IRAS requires a company whose registration has been cancelled to retain its books and papers for at least five years from the date of dissolution. This responsibility generally falls on the person who was an officer of the company immediately before dissolution.

That means your closing company process should include a plan for keeping the relevant financial and tax records safely. Your company may no longer be operating, but its history still needs to be documented. Keeping those records also gives you something to refer back to if questions arise about the company's tax affairs after closure.

Final Thoughts

Closing company is more than making the business disappear from the register. It is about making sure the company's accounting, tax and compliance affairs are properly wrapped up before the final step. ACRA may handle the strike-off, but IRAS still needs to be considered, especially when there are outstanding tax filings, assessments, GST matters or records to retain.

For business owners, the best approach to closing company is to plan the closure from the financial side as well as the corporate side. Review your accounts, settle outstanding matters, check your tax position and keep the necessary records before submitting the application.

If you are considering closing company in Singapore and are unsure whether your accounts, tax filings or other financial matters are ready, Accounting Superhero can help. Speak to our team for professional accounting and tax support, so you can close your company properly and move forward with confidence.