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

Business Consultant Finder Theme By aThemeArt - Proudly powered by WordPress.