WHAT YOU NEED TO DO TO KEEP COMPANY DORMANT
What is Dormant Company ?
ACRA definition : ” Company is consider DORMANT if NO accounting transaction occur “
IRAS definition : ” Dormant company means company does not conduct any business activities that generate income during financial year end “
Transaction does NOT have impact on dormancy of company :
- Interest from fixed deposit
- appointment of company secretary
- maintain of company registered address
- penalties / fine with Authorities –
In term of COMPLIANCE ISSUE, what you need to do ?
Toward ACRA
With effect from financial year ending with 3 January 2016,Dormant Company is EXEMPTED from preparation of financial statement with the following condition :
- company is fullfill substantial assets test:
*** The substantial assets test is satisfied only if the TOTAL ASSET ( or consolidated total asset of the Group ) of the company within financial year end DO NOT exceed S$500,000 ***
- the company has been dormant from the time of formation or since the end of the previous financial year
So, what you need to do ?
Preparation of resolution to approve dormancy of the company and declare with ACRA .
And please note that annual return filing is still applicable to dormant company .
Toward IRAS
If you are decide to keep the company in dormant. Please declare with IRAS via WAIVER OF INCOME TAX SUBMISSION
Click here for FAQ
Can i Recommencing Business again after being dormant ?
Yes. Company must notify IRAS within 1 month from the date of generate profit .
Related FAQ : here for FAQ
Related FAQ : here for FAQ