Singapore laws have been changed to exempt the dormant companies from preparation of financial statements. Previously the dormant companies were exempt from audit requirement but they were still required to prepare its unaudited financial statements.
In this context it is very important to understand what is dormant in context of ACRA (Registrar of Companies). As far as IRAS (Inland Revenue Authority of Singapore) is concerned, a company that does not earn any revenue is a dormant Company (expenses can be any high). However this is not the case with ACRA. ACRA only allows six transactions for the company to be dormant. If the company is having any other transaction other than six allowed transaction, the company will not be considered dormant for ACRA filings.
Six allowed transactions for the dormant companies
- Subscription of share by the subscriber to Memorandum of the Company
- Appointment of Company Secretary
- Appointment of Auditors
- Keeping of Registers and Books of the Company
- Maintenance of Registered office of the Company
- Payment of ACRA fees, fines or penalties
Please note that the dormant companies are still required to convene their AGM and file annual return with ACRA every year
You may fill in the contact form below if you have any queries regarding dormant company or if you wish to get a quote for annual filings of your dormant company.