A company that has stopped trading may still own cash. Before strike-off, reconcile the bank balance and obtain advice on settling obligations and any lawful distribution.
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Do not transfer the money to a founder merely to make the account empty.
Explain the remaining balance
Compare the bank statement with the ledger, outstanding payments, deposits and receipts. Identify money owed to customers or other parties and amounts reserved for tax or closure costs.
A bank balance is not necessarily distributable profit. Cash, accounting profit and a shareholder’s entitlement are different questions.
Example: unused customer deposits remain
The company’s account contains deposits for work that will not be performed. Review the contracts and refund obligations before deciding what belongs to shareholders.
Prepare an asset-and-liability closeout
- Cash and any other company assets.
- Creditors, employee obligations and tax.
- Customer refunds and contingent claims.
- Shareholder loan balances.
- Proposed distributions and supporting authority.
Review ACRA’s strike-off criteria against the actual position. The company must satisfy the relevant conditions, not merely cease sales.
Choose the proper settlement process
Ask accounting and legal advisers how the remaining amounts should be dealt with. Dividends, capital returns, loan repayments and liquidation distributions have different requirements.
Document the chosen action and keep approvals, payment references and recipient details. Do not label every founder payment a loan repayment without a genuine underlying debt.
Close the account at the appropriate point
Coordinate final receipts and payments with the bank and advisers. Retain statements and closure evidence so the transaction history remains available.
Only then assess the actual strike-off application and final outcome. An empty account obtained through an unsupported transfer is not evidence of a proper closure.
Does company cash belong directly to the founder?
No. Establish the legal basis for any payment.
Is zero cash enough to qualify for strike-off?
No. Review all relevant assets, liabilities and criteria.
Related company closure resources
See our shareholder loan review, filing history checklist and continuing guarantee guidance.
Get help with company closure
Email [email protected] or WhatsApp +65 8501 7133. We provide corporate secretarial and accounting support, with tax advisers to review outstanding tax matters. Legal advisers from our associated law firms can assist with creditors, closure disputes, restoration and winding-up questions.