What is Dormant Company
A company is dormant when there are not business activities and have no income for the whole financial year. The company must not own any investment in shares, real properties or fixed deposit. if it owns any properties or fixed assets, it must ensure that no income is derived from it. A dormant company must be de-registered for goods and services tax if it was previously registered.
Filing requirement of dormant company
A dormant company is still required to submit its income tax return with IRAS and annual return filing with ACRA.
Even though the company is dormant, it is still compulsory to conduct annual general meeting physical or in paper and file the annual return by its deadline. The company shall be exempted from filing financial statement and audit for the period of being dormant.
A dormant company must continue to submit its form C-S/C unless the company request for waiver of income tax return if the company have no intention to recommence business within the next 2 years.
Benefit or why do you need to have a dormant company?
- To set up a company you intend to use in the future. Maybe you have a plan to start a new trade and want to set up everything in advance. Or maybe you intended to start the business, however, due to other commitment, you are forced to put aside the new venture to focus on other matters.
- Reserve the name of the company to prevent competitor to register the name. You may have a very great idea for a company name and plan to work on the branding in the future, to prevent others from taking the name, you can reserve and incorporate a dormant for this purpose.
- To hold fixed asset.
- Company cease trading but intend to resume after a break. You may have decided to cease trading for your company for a period of time, it may be because of declining market trend, a high cost of maintenance etc. this decision may reduce your loss through a period of financial crisis.
- Dormant before winding up. There may be a period where the company has ceased business and started the winding up process.
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 for form C-S/C with IRAS
Is my company considered Dormant?
To be sure that your company can be considered as dormant, you can submit your latest report to us to prove that the company is dormant, please send us the latest report to review your company status.