Taking care of your
Dormant Company
Our package can be tailored to fit your needs, regardless of whether your company has no income or expenses, or even if you have minimal business activities.
Are You a Dormant Company?
What makes a dormant company? According to Singapore government (ACRA and IRAS), the specific definition of a dormant company means:
- The company is not generating income or expenses (such as investments, sales, salaries, dividends etc.)
- The company is not listed, or a subsidiary of a listed company
- Not more than $500,000 value in asset during the financial year
If your company meets the above conditions, yes you are running a dormant company!
Filing Your Annual Return with ACRA
- It does not have any accounting transactions.
- It is not a listed company or a subsidiary company of a listed company.
- Its total assets at any time during the financial year in question does not exceed $500,000 in value or such other amount as may be prescribed in substitution by the Minister.
- It is a parent company (which is not itself a subsidiary company of another corporation), belongs to a group the consolidated total assets of which at any time during the financial year in question does not exceed $500,000 in value or such other amount as may be prescribed in substitution by the Minister.
However, please note that a dormant company exempted from preparing its financial statements should still prepare a set of management accounts for approval at the company’s AGM.
Filing Your Tax Return with IRAS
Once you have determined that you are a dormant company, you can apply to IRAS to be released from your obligation to file a tax return (Form C or Form C-S). In order to qualify for this waiver, you need to meet the following requirements:
- Your company must not own any investments (e.g., properties, shares and so on). If you do hold this kind of investments, you must not use it to generate any revenue or income for the company.
- Your company must not own any investments (e.g., properties, shares and so on). If you do hold this kind of investments, you must not use it to generate any revenue or income for the company.
- You must have filed all financial statements and tax computations up until the company ceased trading.
- You must have de-registered for Goods and Services Tax (GST) purposes (if you were previously registered).
Recommencing Business
Once a dormant company re-commences business or starts to receive any income, you need to notify IRAS within one month from the date the income was earned/received by emailing ctmail@iras.gov.sg to request for an Income Tax Return. IRAS has recommended that the email have the following details:
- Subject header: “Recommencement of business and request for Income Tax Return”
- Name and Unique Entity Number (UEN) of the company
- Date of recommencement of business and new principal activity (if applicable); and
- Date of receipt of other source(s) of income e.g., interest, dividend, rent, etc. (if applicable).
Help us tailor an Ace services for your business
- We’ll answer your questions in a chat or a call
- Collect data about your business
- Prepare a tailored quote for your specific need
Why Choose Ascentia Ace for Company Incorporation?
- Fast and efficient
- Transparent pricing
- Expert advice and customer support
- Digital platforms
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Singapore 018960
Contact Info
Phone: +65 6407 1051
Email: sales@ascentiaace.com.sg