The term dormant company has a different meaning for both the Inland Revenue Authority of Singapore (IRAS) and the Accounting and Corporate Regulatory Authority of Singapore (ACRA).

IRAS defines a dormant company as a company having no revenue during the financial period. The company may still be dormant even though it has incurred expenses.

ACRA defines a dormant company as a company having no accounting transactions during the financial period. The expenses of appointing a company secretary and auditor, the maintenance of a registered office and registers and any penalties or fees to ACRA do not affect the dormancy.

Please note that a dormant company will still need to submit Corporate Tax Returns to IRAS and fulfil Annual Return Filing requirements with ACRA.

A dormant company can apply to IRAS to waive the requirement to submit its Corporate Tax Returns. It can also apply to ACRA for a waiver from audit requirements in some instances.

 

When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.

 

Yours Sincerely,
The editorial team at Singapore Secretary Services

 

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