Dormant status in Singapore
Dormant Company — a company that has not had any commercial transactions for a year. In Singapore, Dormant companies can follow simpler filing procedures with ACRA and IRAS if they fit the definition of each agency.
- A dormant company still needs Singapore accounting services as well as corporate secreterial ones, but there are a lot less papers to do, so the rates will be lower.
What are the advantages of a Dormant company?
A Dormant company is exempted from preparing financial statements for ACRA if these three requirements are in place:
- It is not a listed company or a subsiduary of one
- It has no more than S$500,000 in assets whether standalone or consolidates ones
- It has been Dormant since the end of its previous financial year
IRAS accepts applications for waivers that release a Dormant company frrom having to file Form C / C-S. This is what it requires:
- Taxes and financials for the operating period of the company have been properly filed
- The investments of the company generate no revenue or income (or don't exist)
- There is no intention to operate within the next two years
- If the company was GST-regitered, it has de-registered
How can I apply for Dormant company?
There is no appliction procedure for Dormancy per se, rather your company should qualify for the requirements of ACRA and IRAS and prepare your annual filings accordingly. Here is what each office expects from your business:
ACRA: zero accounting transactions within a given period. ACRA also specifies activities that do not threaten your Dormant company status:
- Appointment of a corporate Secretary
- Maintaining an official office and registers
- Paying fines to ACRA
IRAS: the business is Dormant if not generating income.