Services
Liquidation Services in Singapore
Trusted partner of 18 years with our clients
Singapore Licensed Insolvency Practitioner
Since 2010, our approved liquidators in Singapore and insolvency practitioners have helped many business owners dealing with stressful financial situations. We provide them with pragmatic solutions to turnaround or close their Singapore companies.
Our team of experienced and qualified professionals provide guidance to directors, management and shareholders to hive down and wind up companies in Singapore.
Give us a call, drop us an email or leave us a note and let us guide you through the potential liquidation scenarios today.
All discussions will be kept private and confidential.
What is Liquidation?
Liquidation is a formal legal process that involves the systematic closure of a company’s operations, the sale of its assets, the settlement of debts, and the dissolution of the company’s legal entity. This procedure can be initiated for various reasons, including financial insolvency, the fulfillment of business objectives, or the decision of directors or shareholders to wind down the company.
The liquidation process is governed by rigorous legal frameworks, ensuring transparency, fairness, and adherence to statutory obligations [Insolvency, Restructuring and Dissolution Act 2018 (IRDA 2018)]. A licensed insolvency practitioner, known as a liquidator, is appointed to oversee the entire liquidation process. The liquidator is responsible for selling the company’s assets, settling its debts, and distributing remaining funds to stakeholders according to a predetermined order of priority.
Throughout the liquidation process, strict compliance with legal requirements, timely notifications to relevant authorities, and transparency in financial transactions are of utmost importance. The primary objective of liquidation is to equitably distribute the company’s assets among creditors and stakeholders and legally dissolve the company’s corporate existence.
For companies and stakeholders navigating the complex landscape of liquidation, seeking professional guidance is advisable to ensure a smooth and legally compliant process.
Types of Liquidation
Below are the types of liquidation offered:
- Members’ Voluntary Liquidation (MVL)
- Creditors’ Voluntary Liquidation (CVL)
- Compulsory Winding up
Members’ Voluntary Liquidation (MVL) is a voluntary process used by financially sound companies to cease operations, settle debts, and distribute surplus assets to shareholders. This method is commonly chosen for reasons like retirement, restructuring, or project completion. The key steps in MVL include appointing a liquidator, declaring solvency, realizing assets, distributing to shareholders, and ultimately dissolving the company.
MVL offers advantages such as efficient surplus fund distribution, an organized wind-up process, and favorable tax treatment for shareholders. In summary, MVL is a structured way for solvent Singaporean companies to conclude their business activities, fulfill financial obligations, and distribute remaining assets to shareholders.
Click here to know more about Members’ Voluntary Liquidation.
Creditors’ Voluntary Liquidation (CVL) is a voluntary process for financially distressed companies. Directors and shareholders can proactively wind down operations, settle debts, and distribute assets among creditors. Key steps include appointing a liquidator, conducting creditors’ meetings, realizing assets, reporting progress, distributing assets, and ultimately dissolving the company. CVL safeguards creditors’ rights and offers a structured solution for insolvent businesses.
Click here to know more about Creditors’ Voluntary Liquidation.
Compulsory Winding-Up is a legal process that forces an insolvent company to cease operations, liquidate its assets, and distribute funds to creditors. This action is typically initiated by creditors or regulatory authorities when a company cannot meet its financial obligations. The court appoints a liquidator to oversee the process, ensuring fair treatment for all stakeholders. Compulsory Winding-Up is a legal mechanism to resolve financial crises and protect the interests of creditors and shareholders in Singapore.
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Any queries on liquidation services in Singapore? Look at our Frequently Asked Questions (FAQs) or Contact Us.
Read more: All You Need to Know About Company Liquidation Singapore in 2024