Dormant company: What you need to do

When your Singapore company is dormant, meaning it has no significant accounting transactions during the financial year, there are several things you should do to comply with the regulations set by the Accounting and Corporate Regulatory Authority (ACRA):

Submit annual returns

Even if your company is dormant, you must still file annual returns with ACRA. This must be done within 30 days of the Annual General Meeting (AGM) or within 6 months after the financial year’s end, whichever is earlier. Most companies, especially the dormant ones fail to see the importance of this. Failure to comply may lead to further complications in the future.

Maintain proper accounting records

You are still required to maintain proper accounting records even if your company is dormant. These records should include bank statements, invoices, receipts, and other financial documents.

Notify ACRA of changes

If there are any changes to your company’s registered address, directors, or company secretary, you must notify ACRA within 14 days. Also, you need to inform ACRA of the period of dormancy, and the reason for dormancy in that period. Filing fees still apply. Any late notification may result in fines or higher filing requirements.

File tax returns

If your company has not been generating income, you are still required to file nil tax returns with the Inland Revenue Authority of Singapore (IRAS). You will need the signed financial statements for this step. They serve as statements to account for the activities of the company represented by the directors of the company.

Consider closing the company

If you no longer have any need for your company, you may consider closing it. You can do this by filing a striking-off application with ACRA. However, you must pay all outstanding fees and taxes before doing so. The company must not be involved in any legal proceedings as well. If not, there may be further implications or delays in completing the striking-off process.

It is important to comply with these regulations to avoid penalties or legal issues with ACRA or IRAS. You may also approach us to find out more about managing your dormant company.