What is a Dormant Company?
Dormancy is assessed differently by IRAS and ACRA. For income tax, a company is generally dormant when it carries on no business and has no income during the financial year. Holding an investment does not automatically prevent this classification if it produces no income.
Filing and exemption checks
An ACRA annual return is still required. A private company may qualify for an AGM exemption or dispense with AGMs under the applicable rules; dormancy does not mean every company must hold a physical meeting.
ACRA financial-statement preparation, filing and audit exemptions have separate conditions. A dormant relevant company may qualify for exemption from preparing and filing financial statements under section 201A, including the applicable assets test. Do not assume all dormant companies are automatically exempt.
For IRAS, file the appropriate return unless a filing waiver has been granted. Eligible companies may use the simplified Form for Dormant Company. A waiver is an application subject to conditions, not an automatic result of having no sales. Review GST registration and deregistration obligations separately.
IRAS dormant-company guidance | ACRA financial-statement exemptions
Keeping a company for future use
A company may stop trading temporarily or remain unused before a future venture. Incorporation still carries ongoing compliance duties and costs. BTA can review your activities, income, assets and records before confirming the appropriate filing approach.
Dormant Company Package
We are able to offer a dormant company compliance package at a low fee $500 and it includes:
- Nominated Corporate Secretary
- Preparation of dormant management report
- Preparation and Filing of annual return with ACRA
- Preparation and filing of the applicable corporate income tax return with IRAS
Is my company considered Dormant?
Contact BTA to arrange a review of your latest records, business activity and income. We will assess the relevant ACRA and IRAS conditions before recommending a filing approach.
