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You are here: Home / FAQs / What does it mean when a company is in liquidation?
FAQ : Company Incorporation / Company Liquidation

What does it mean when a company is in liquidation?

When a company is in liquidation, it is either struck off or wound up. There may be a few reasons why a company would be closed down:

  1. It cannot pay its debts or has liabilities due in excess of its assets. A creditor may commence legal action against the company by making an application to court, backed by proof of debt. If the company is unwilling/unable to repay or settle the debt, it may be wound up.
  2. It has ceased business activities either because it is dormant or is not profitable
  3. There is a breach of laws and regulations by the officers of the company or offences by the company for non-compliance
  4. There is a corporate restructuring either internally or as part of a group of entities
  5. There is a dispute(s) amongst shareholders that are irresolvable

To learn more about company liquidation and the process of striking off or winding up, please refer to our Singapore Company Liquidation Guide.



Related questions?

  1. How do I find out if the name for my company is available?
  2. What are dormant companies?
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  4. What are dividends and do Shareholders have to pay any tax on dividends in Singapore?
InCorp GroupPrimeGlobal

Rikvin Pte Ltd

EA License No. 11C3030

36 Robinson Road,
#20-01 City House,
Singapore 068877

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