What Is Striking Off?
- Striking Off is the process of applying to SSM
- To officially remove a company from the Register of Companies
- It is a legal exit mechanism that is generally less costly and simpler than winding up
Which Companies Are Suitable for Striking Off?
- The company has ceased business operations
- Has remained dormant for a long period
- The company has no intention of continuing its business
- The company has no assets and no liabilities
- The company has no ongoing legal disputes
- Making it a "clean exit"
Why Do Companies Choose Striking Off?
- To avoid continuing costs such as:
- Audit fees
- Company secretary fees
- Annual Return compliance costs
- To close inactive subsidiaries
- As part of a group restructuring
Key Requirements for Striking Off
- The company must be completely "clean"
- With no assets
- No liabilities
- No unresolved legal disputes
- If the company still has assets or liabilities Striking Off is generally not suitable
Summary
- Striking Off is a legal process to remove a non-operating company from SSM's register
- It is suitable for companies with no assets, no liabilities, and no legal disputes
- Compared with winding up, it is simpler and more cost-effective
- Before applying, the company should ensure it fully satisfies the Striking Off requirements