Simplified Insolvency Programme (SIP 2.0)

The Simplified Insolvency Programme (SIP 2.0) is part of Singapore’s insolvency framework. It is facilitated by the Ministry of Law’s Insolvency Office and administered by licensed Insolvency Practitioners (IPs).

SIP 2.0 offers eligible small businesses a simpler, faster and lower-cost process if they are facing financial difficulties. It took effect on 29 January 2026 as a permanent part of Singapore’s insolvency regime.

There are two programmes under SIP 2.0:

Simplified Debt Restructuring Programme (SDRP)
The SDRP is for businesses that are still viable but need help restructuring their debts so that they can recover and continue operating.

Simplified Winding Up Programme (SWUP)
The SWUP is for businesses that are no longer viable, as well as eligible dormant companies, and need a simpler process to wind up in an orderly manner.

 

Administration of SIP 2.0

Under SIP 2.0, both programmes are administered by licensed Insolvency Practitioners. For the SDRP, the IP may act as the Restructuring Adviser. For the SWUP, the IP may act as the Liquidator.

In general, a company may be eligible for SIP 2.0 if its total liabilities, including contingent and prospective liabilities, do not exceed S$2 million, and there are no factors that make the company unsuitable for the programme.

For companies placed under the SDRP, the default moratorium period is 30 days. This may be extended if the relevant requirements are met and there is support from creditors.

To learn more about SIP 2.0, its eligibility requirements and process, please visit the MinLaw Insolvency Office website. Companies may also refer to the list of licensed Insolvency Practitioners to assess their eligibility and consider the most suitable course of action.

To learn more about SIP 2.0, its eligibility requirements and process, please visit the MinLaw Insolvency Office website. Companies may also refer to the list of licensed Insolvency Practitioners to assess their eligibility and consider the most suitable course of action.

Please visit the Ministry of Law / Insolvency Office resources below:

1.   SIP 2.0 overview - MinLaw Press Release page

2.   SIP 2.0 FAQs

3.   List of licensed Insolvency Practitioners