What is the definition of a Dormant Company?

The company is considered as dormant as long as the company meets all the criteria below.

Dormant company according to IRAS
A company that does not have any revenue or income during a given financial period is considered Dormant by IRAS even though it may have booked or incurred expenses.

Dormant company according to ACRA
ACRA defines a company as dormant during a period in which no accounting transaction occurs.
Transactions that will not affect the dormant status of the company:
- The appointment of a secretary of a company;
- The appointment of an auditor;
- The maintenance of a registered office;
- The keeping of registers and books;
- The payment of fees to the Registrar or an amount of any fine or default penalty paid to ACRA; and
- The taking of shares in the company by a subscriber to the constitution in pursuance of an undertaking in the constitution.

In addition to the points we have listed above as long as the payment or receipt is not exceeding the nominal sum of S$5,000, the company can be classified as dormant.

Updated on: 16/01/2023