Closing a Company in Singapore: How to Shut Down and Retain Key Talent

1. Introduction: Why Companies Close Entities (But Keep Talent)

Businesses—especially Singapore-based, mid-sized firms—may choose to close their Singapore entities to reduce costs, realign strategy, or pivot markets. Despite closure, your local employees hold essential institutional knowledge, client relationships, and regional expertise.

Retaining your Singaporean talent ensures minimal disruption, smoother regional coverage, and strategic readiness. Through an Employer of Record (EOR) Singapore—such as AYP—you can hire in Singapore without entity, transitioning employees seamlessly during entity closure.

2. What Happens When You Close a Company in Singapore

A. Legal & Compliance Pathways

You have two routes to close your Singapore company:

• Striking off: suitable for solvent, non-operational firms with no liabilities 
• Winding up (liquidation): necessary if assets remain or the company is insolvent

Striking Off Process

1. Cease operations and clear debts (taxes, CPF, government fees)
2. File a striking-off application via ACRA’s Bizfile+
3. ACRA issues notice and publicly gazettes twice—spanning ~4–6 months
4. If there are no objections, the company is removed from the register

Winding Up (Voluntary)

• Directors submit a Declaration of Solvency if solvent 
• Appoint a liquidator and call a meeting of shareholders
• Liquidator sells assets, pays debts, and transfers surplus
• Final return filed; dissolution follows (~12 months)

B. Obligations to Employees

As you transition, it’s vital to comply with Singapore’s Employment Act and Tripartite Guidelines:

• Provide written termination notice or salary in lieu: per contract or statutory minimums
• Notify MOM in cases of retrenchment (10+ affected) within 5 days
• Pay accrued salary, leave encashment, and CPF (for locals) promptly—within 3 days of termination
• Conduct fair processes and due inquiries under Tripartite Guidelines on dismissals
• Retrenchment benefits: common practice is 2–4 weeks' salary per year of service

3. Risks of Talent Loss During Entity Closure

• Operational disruption: losing local expertise affects client service and compliance. 
• IP leakage: departing employees may take confidential knowledge elsewhere. 
• Client disengagement: relationships break when familiar teams vanish. 
• Re-entry costs: rebuilding infrastructure and hiring new local staff is expensive and slow. 

4. Retaining Employees Without a Legal Entity: What Are Your Options?

Partnering with an EOR in Singapore enables you to retain employees without entity—legally, swiftly, and with minimal friction.

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5. How EOR Helps You Retain Employees in Singapore

What EOR Does, in Plain Terms

An EOR like AYP acts as the legal employer in Singapore, handling:

• Employment contracts under the Employment Act
• Payroll, CPF contributions, and statutory benefits
• Terminations, retrenchment filings, and compliance
• HR admin—timesheets, pay slips, queries, and more

You maintain day-to-day training, management, and strategy.

Transition Process

1. Planning: Identify key roles to continue 
2. Terminate and Notify: Issue legal termination notices 
3. EOR Onboarding: AYP hires staff under new compliant contracts 
4. Benefits Transfer: CPF, employment terms, and benefits continue uninterrupted 
5. Operational Control: You direct day-to-day work, EOR handles compliance and admin 

This allows you to hire in Singapore without entity and transfer employees after entity closure efficiently, securely, and legally.

Why Choose AYP?

• Rapid onboarding: Staff employed within 3–5 business days 
• Full compliance: Expertise across Singapore employment law 
• Regional coverage: ISO-certified across Asia 
• Explore AYP’s EOR Singapore solution 

6. Case Study: Singapore Entity Closure, Zero Disruption

Company: Singapore-based tech firm

Team: 12 local employees

Situation: Strategic restructure, Singapore entity wound up

Solution: Engaged AYP EOR before issuing termination notices

Results:

• 100% employee retention, preserving client teams 
• No interruption in deliverables or projects
• Compliance upheld: notice, CPF, and retrenchment filings
• Smooth dissolution over 5 months

“AYP’s EOR model let us close legally, yet keep our Singapore team and momentum intact. No downtime, no risk.” — Regional Ops Director

7. Key Considerations Before You Close an Entity

1. Timing: Start EOR onboarding before termination to avoid employment gaps. 
2. Compliance Checkpoints:
   • Ensure notice/legal termination is correct
   • Submit retrenchment notification to MOM (if 10+ staff)
   • Conduct due inquiries for misconduct terminations
3. Employee Communication:
   • Explain the EOR transition clearly
   • Reassure continuity of pay, benefits, and role
   • Coordinate with AYP for onboarding timelines
4. HR & Payroll Coordination:
   • Close off existing payroll cycles
   • Coordinate CPF transfers and pay final entitlements
   • Smooth handover to AYP-managed payroll and admin

8. Conclusion: Shut Down with Confidence, Keep Your Team Intact

Closing your Singapore entity doesn't mean surrendering your talent. With AYP’s EOR solution, you can:

• Cut entity costs
• Maintain your skilled workforce
• Avoid compliance pitfalls
• Ensure operational readiness for future market activities

You can legally close a company in Singapore, while still retaining employees without entity—keeping your teams engaged, compliant, and productive.

9. Call to Action: Speak to AYP’s Local Experts

Ready to shut down your Singapore entity but hold onto your top talent?

✅ Connect for a free EOR + entity closure consultation

✅ Get a complimentary cost simulation

✅ See how AYP can onboard your team in days, not months

Retain Your Team Without a Local Entity →