{"id":25330,"date":"2024-09-10T00:10:58","date_gmt":"2024-09-10T00:10:58","guid":{"rendered":"https:\/\/www.genacct.com\/%e5%85%ac%e5%8f%b8%e7%b5%90%e6%a5%ad\/"},"modified":"2026-06-22T04:11:28","modified_gmt":"2026-06-22T04:11:28","slug":"company-closure","status":"publish","type":"post","link":"https:\/\/www.genacct.com\/en\/company-closure\/","title":{"rendered":"[Company Closure] How to Avoid Failure in Company Deregistration? Guide to Closing Bank Accounts and Asset Handling"},"content":{"rendered":"\t\t
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How to avoid failure in company deregistration? Most failures or issues during company closure occur because directors and shareholders lack understanding of the termination process: specifically, failing to handle company tax filing<\/a>, managing company bank accounts, neglecting to file annual returns<\/a>, or improperly handling company assets (and liabilities).<\/p>

Physical Fitness & Beauty closed all its branches on September 6, 2024 (1)<\/sup>. Although Physical’s financial status has not been made public, the company certainly has outstanding “prepaid” liabilities. If a company cannot repay its debts, it cannot be closed via the deregistration method.<\/p>

General Accounting has been established for over 20 years, with extensive professional experience in company deregistration services<\/a>. This article shares essential knowledge regarding asset arrangements, closing company bank accounts, and tax matters before deregistering a company. We hope this helps you plan effectively before closing your business to complete the process as quickly as possible.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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    Form IR1263: Request for Notice of No Objection to a Company \/ Limited Partnership Fund being Deregistered<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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    The first step in applying for company closure is submitting Form IR1263<\/a> (2)<\/sup>. Applicants must answer 11 questions within the form. The Inland Revenue Department (IRD) has clearly stated that if the answer to any of questions 3 through 7 is “Yes,” the IRD will not issue a Notice of No Objection<\/strong>. Applicants must resolve the matters in questions 3 to 7 before applying for deregistration.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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    How to handle company assets upon closure?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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    After a limited company is successfully closed, the Companies Registry will immediately strike it off the register. Since a limited company is a separate legal entity with independent legal status, the company basically cannot operate once it has been successfully deregistered.<\/p>

    Therefore, the assets of a limited company must be transferred to a third party, distributed to shareholders, or disposed of before applying for closure. Otherwise, company assets will be confiscated as bona vacantia after the company is struck off.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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    Methods for Handling Assets During Company Closure<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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    1. Properties<\/strong>
      Shareholders should sell properties held in the name of the limited company before applying for deregistration. If a company holds property<\/a>, it cannot apply for deregistration.<\/li>
    2. Subsidiaries \/ Associated Companies<\/strong>
      If the company holds shares in other limited companies, shareholders should first transfer the subsidiary shares to a third party.<\/li>
    3. Stock Investments<\/strong>
      Before closing the company, shareholders should sell or transfer any stock investments held in the name of the limited company.<\/li>
    4. Other Fixed Assets<\/strong>
      For items such as machinery, vehicles, computers, photocopiers, and fax machines, shareholders should sell or dispose of them before applying to terminate the business.<\/li>
    5. Accounts Receivable<\/strong>
      The person in charge should calculate outstanding receivables and urge debtors to make payments as soon as possible.<\/li>
    6. Prepayments<\/strong>
      If deposits or service fees have been prepaid, the company should use the services or negotiate a refund immediately.<\/li>
    7. Deposits<\/strong>
      For rental deposits, water, electricity, and telephone deposits, services must be terminated and arrangements made for the return of deposits.<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
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      How to handle company liabilities during deregistration?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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      A company must clear all debts before submitting a closure application. When filing Form IR1263 to request a Notice of No Objection, the company must declare that it has no outstanding debts. If false statements are discovered, prosecution may follow.<\/p>

      Furthermore, the Companies Registry will publish a notice in the Gazette (3)<\/sup> regarding the company being in the process of deregistration (4)<\/sup>. Creditors have the right to request the Companies Registry to stay the deregistration application.<\/p>

      The only exception is money owed by the company to shareholders or directors. If the company cannot repay these debts, shareholders and directors can pass a resolution to waive their claims against the company.<\/p>

      Common Company Liabilities:<\/strong><\/p>