Simplified Winding Up Programme (SWUP) Services
When a small enterprise faces insurmountable debt, the traditional liquidation process may appear to be expensive. To address this, Singapore's Ministry of Law introduced the revamped Simplified Insolvency Programme (SIP 2.0) as a permanent feature of the insolvency laws.
The Simplified Winding Up Programme (SWUP) is a streamlined process for small eligible insolvent companies. Administered by Licensed Insolvency Practitioners (IPs), this framework allows directors and shareholders to wind up non-viable businesses quickly, efficiently and at a lower cost as compared to the traditional liquidation process.
Fixed, Predictable Fees
For simple traditional business, SWUP removes the heavy administrative formalities of traditional liquidation, allowing for transparent, fixed-fee pricing.
100% Out-of-Court
Under SIP 2.0, the entire winding-up process takes place out-of-court. The IPs will apply to the Ministry of Law.
Director Protection
By entering SWUP, the Company is deemed wound up and your authority to deal with the affairs of the Company ceased, mitigating your personal exposure.
Licensed IP Authority
Licensed practitioners handle the realization of assets, claim adjudication, and handled the enquiries from creditors.
💡 Essential Eligibility: Do You Qualify for SWUP?
Unlike standard Creditors' Voluntary Liquidation (CVL) which has no debt cap, SIP 2.0 has simplified entry criteria designed specifically for micro and small enterprises.
- The $2 Million Liability Cap: Your company's total liabilities (including debts to banks, landlords, IRAS, and suppliers) must not exceed S$2,000,000.
- No Competing Proceedings: The company cannot be subject to ongoing, competing insolvency or winding-up court applications.
- Alternative: If your debts do exceed S$2M, or if the business activities are fairly complex, the preferred mode of winding up will be a Creditors' Voluntary Liquidation.
SWUP vs. Traditional Liquidation
Here is how SWUP framework compares to traditional liquidations in Singapore.
| Feature / Criteria | Simplified Winding Up (SWUP) | Creditors’ Voluntary (CVL) |
|---|---|---|
| Company Solvency | Insolvent (Cannot pay debts) | Insolvent (Cannot pay debts) |
| Liability Limit | Total cannot exceed S$2,000,000 | Unlimited (Can exceeds S$2M) |
| Court Mandate | Out-of-Court – Application to Ministry of Law | Out-of-Court – Initiated by Company |
| Cost & Timeline | Lower fixed fee, fast-tracked | Higher cost, longer timeframe |
| Best For | Micro & SMEs seeking a low-cost exit | Medium to large enterprises or businesses with complex issues |
Looking for a "SWUP Lawyer"?
You Actually Need a Liquidator.
A common misconception among distressed business owners is that they need to hire a lawyer to wind up their company under SWUP.
While a law firm can advise you on the business and contract risks, only an insolvency practitioner can act as liquidator and most of the practitioners are Chartered Accountants.
To apply for the Ministry of Law's SWUP programme, you will need to appoint a Licensed Insolvency Practitioner (IP) to wind up the Company.
Streamlined Liquidation Process
Eligibility Check
A confidential assessment of the Company’s liabilities to confirm the company’s liabilities fall below the S$2 million threshold and meet all statutory requirements.
Formal Lodgment
Preparation of all the necessary director declarations, shareholder resolutions, and lodgment of your SWUP entry application.
Liquidator Takeover
Once formally appointed, the Company will be placed under liquidation, and the Liquidator shall take control of the Company. There will be a stay of proceedings, suspending all legal suits and freezing creditor enforcement actions immediately.
Final Dissolution
Upon realization of the assets, adjudication and distribution to creditors, the Liquidator will publish the required notices and file the final return to complete the dissolution process.
Frequently Asked Questions
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