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company strike off -- need some help

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sgsam
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company strike off -- need some help

Postby sgsam » Sat, 24 Jan 2009 5:21 am

Hi All,

I had registered a pte ltd a few years back via a local company that is expert in this matters and the company was opened alongwith the company bank address. However, their unrealistic fees just keeps mounting up and up. Is there a way to strike off the whole company without going through them ?

What are my best options here?


Thanks,
Sam

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Postby sundaymorningstaple » Sat, 24 Jan 2009 7:09 am

What unrealistic fees? Secretarial fees? Tax Filing fees? Corporate Filing fees? ECI filing fees? AGM resolutions? Any and all other annual filings that need to be done due to the laws of Singapore that are required from a Pte Ltd company whether or not you do business? You can wind up the company or find another company secretary and company auditor. Shouldn't be a problem. Remember though, there are costs associated with winding up a company as well.

Once a company is a Pte Ltd company, it has a life of it's own.

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Postby Strong Eagle » Sat, 24 Jan 2009 8:43 am

I presume you are talking about the fees that are being charged by the company that created your pte ltd?

Generally, you would have secretarial fees. You must have an outside secretary if you have only one director; otherwise a director can serve as secretary. You have to make sure that minutes of AGM's and resolutions are properly filed, and you can get a book to do it.

Other fees include accounting (which you can do yourself), audit books (which are not required), registered office (which can be virtually anywhere), and nominee director (which you don't need if you are an EP, PR, DP, or citizen).

So, a pte ltd can cost you nothing in terms of money, but time for minutes and resolutions, tax filings, etc.

If you want to wind it up it costs $30 and there is a waiting period to allow others to file objections.

http://www.acra.gov.sg/Services/Company ... ompany.htm

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Postby sgsam » Sat, 24 Jan 2009 12:30 pm

Hi,

Thanks for the replies.

They are asking for a strike-off fee of $2500, their acting as nominee-director fee - $3500/per year etc etc etc .. They showed me a total bill of over $16,000 for the year 2008, and if I need to strike off, I have to pay the total bill plus $2500. I had this company years before I had an EP here. Now that I have an EP and physically present here, is there a way I can strike off the company without them knowing or without a way that they can get back to me.

Or, will it be best if I hire another company to strike off and act on my behalf (while still maintaining the view for the original company that I am still in my home country and not here, so that they don't come looking for me here). How much would this option cost ? as I am not too well versed in the legal issues here. If there is any company or anyone who can help, I would like to know.

As from the acra website, whatever limited I understood, If i file up for company closure, then they will put out a notice, and in that case, can't the original company file a claim to acra that they have this and this invoice to be cleared off first, and putting me in much more trouble?

Thanks,
Sam

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Postby stiwi » Fri, 05 Sep 2014 7:11 pm

Has anyone gone through it? I have also been quoted $2500 excluding GST. From what I read here it only cost $35 to fill the application form, so the amount I was quoted is excessive unless there are some other fees I am not aware of?

From what I know the company must close the bank account first before submitting the application, but before that Director's report and tax clearance has to be prepared and any taxes due have to be paid.

Would it be best striking off before financial year end, after or it doesn't matter?

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Postby Strong Eagle » Fri, 05 Sep 2014 9:09 pm

stiwi wrote:Has anyone gone through it? I have also been quoted $2500 excluding GST. From what I read here it only cost $35 to fill the application form, so the amount I was quoted is excessive unless there are some other fees I am not aware of?

From what I know the company must close the bank account first before submitting the application, but before that Director's report and tax clearance has to be prepared and any taxes due have to be paid.

Would it be best striking off before financial year end, after or it doesn't matter?


I did a strike off last year. It takes about six months to do, requiring publication of notices, etc. The whole point is to protect creditors and keep you from shutting down while owing money. Because my company was essentially in stasis, my accountant charged me $500 plus expenses to shut it down.

As to financial year, the strikeoff occurs in the financial year in which all conditions have been satisfied... so there is no striking off after the financial year end... you file one last set of reports with ACRA.

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Postby stiwi » Fri, 05 Sep 2014 9:21 pm

Strong Eagle wrote:I did a strike off last year. It takes about six months to do, requiring publication of notices, etc. The whole point is to protect creditors and keep you from shutting down while owing money. Because my company was essentially in stasis, my accountant charged me $500 plus expenses to shut it down.

As to financial year, the strikeoff occurs in the financial year in which all conditions have been satisfied... so there is no striking off after the financial year end... you file one last set of reports with ACRA.


Thanks.

What I would like to know is once I have all required reports (that are prepared and filed annually anyway) including tax clearance, are there any additional fees related to striking off beside $35 application form? Charging $2500 just for striking off seem to be excessive and I don't usually mind paying little more to get things done the right way, but either I am missing some fees or someone is trying to rip me off. Once I have the required documents in hand, I can file the striking off application form myself perhaps.

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Postby Strong Eagle » Fri, 05 Sep 2014 10:30 pm

AFAIK, the only official fee is $35. There are expenses associated with publication of legal notices, certified documents, etc, and of course, the labor involved in following through all of this.

All in all, my accountant prepared all the striking off documents, tax returns for YA2013 and YA2014, final financial statements, deregistration of GST, etc.

I think $2500 is high... as I noted, I paid $500 but also engaged her for other work... I'd expect a $1000 to be a reasonable sum.

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Postby Max Headroom » Sat, 06 Sep 2014 8:46 am

I don't know what procedures were required in 2008, but on the face of it, $16,000 seems pretty absurd. The other amounts are way high also, ostensibly anyway.

If I were you, I'd try bringing in the authorities. You did go ahead with that party, so you're not getting off scot-free, but their rates appear border-line criminal.

You could also put the company up for sale.There is a market for this.

Let us know.

Good luck.

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Postby stiwi » Sat, 06 Sep 2014 4:17 pm

Max Headroom wrote:[...]
You could also put the company up for sale.There is a market for this.
[...]


I guess there is a market for pretty much everything these days. The major problem with selling SG company is that it requires nominee director. More and more local companies are not willing to provide this kind of service. I am dealing with one of the bigger local "specialist" for corporate matters and despite my 5 year relationship with them, every time I ask them to provide me something with, they are treating me like a stranger. Potential customer of SG company is not guaranteed that his new business profile and KYC will meet "specialist" approval for the appointment of nominee. In my opinion SG company makes sense only for residents or those who intend to be residents, otherwise HK is better despite audit requirements.

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Postby bizrecovery » Sun, 07 Sep 2014 1:15 am

stiwi wrote:
Max Headroom wrote:[...]
You could also put the company up for sale.There is a market for this.
[...]


I guess there is a market for pretty much everything these days. The major problem with selling SG company is that it requires nominee director. More and more local companies are not willing to provide this kind of service. I am dealing with one of the bigger local "specialist" for corporate matters and despite my 5 year relationship with them, every time I ask them to provide me something with, they are treating me like a stranger. Potential customer of SG company is not guaranteed that his new business profile and KYC will meet "specialist" approval for the appointment of nominee. In my opinion SG company makes sense only for residents or those who intend to be residents, otherwise HK is better despite audit requirements.


I note your problem. PM me if you need some help.

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Postby Strong Eagle » Sun, 07 Sep 2014 2:04 am

bizrecovery wrote:
stiwi wrote:
Max Headroom wrote:[...]
You could also put the company up for sale.There is a market for this.
[...]


I guess there is a market for pretty much everything these days. The major problem with selling SG company is that it requires nominee director. More and more local companies are not willing to provide this kind of service. I am dealing with one of the bigger local "specialist" for corporate matters and despite my 5 year relationship with them, every time I ask them to provide me something with, they are treating me like a stranger. Potential customer of SG company is not guaranteed that his new business profile and KYC will meet "specialist" approval for the appointment of nominee. In my opinion SG company makes sense only for residents or those who intend to be residents, otherwise HK is better despite audit requirements.


I note your problem. PM me if you need some help.


Be cautious of first time posters who say "PM me if you need some help". This normally means it is someone fishing for business, and we much prefer that "help" be published on this board so that all can benefit.

If you are solicited at all by this poster, let one of the mods know... his/her account will be banned.

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Postby sundaymorningstaple » Sun, 07 Sep 2014 11:55 am

This especially so when it's a new poster and they have a nick resembling a company function/name. caveat emptor (buyer beware). SE has been kind. I wouldn't be so kind and would have deleted both the message and the poster.

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Postby Max Headroom » Sun, 07 Sep 2014 10:35 pm

The purpose I had in mind is, say, for someone keen to do business in the region. What better way than to buy a tried and true Pte Ltd? Beats having to start with a brand spanking new company with no track record at all.

A send-off like "Founded in 1998" indicates that the biz is pretty consolidated and has earned a few stripes eh. Once finances check out, away you go.

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Postby Strong Eagle » Mon, 08 Sep 2014 7:06 am

Max Headroom wrote:The purpose I had in mind is, say, for someone keen to do business in the region. What better way than to buy a tried and true Pte Ltd? Beats having to start with a brand spanking new company with no track record at all.

A send-off like "Founded in 1998" indicates that the biz is pretty consolidated and has earned a few stripes eh. Once finances check out, away you go.


Because it takes about 15 minutes to set up a new company, and generally you will have no idea how many people were pissed off by the "tried and true" company.

If there is a real brand to sell, I'd expect the seller to be aware of that.


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