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 incurred some expenses.
ACRA defines a dormant company as one that has NIL transactions not allowing the “expenses only” distinction. However, ACRA makes an exception for some defined expenses which if incurred will still allow the company to be considered dormant. These expenses are:
(a) the company fulfills the substantial assets test; and
(b) the company has been dormant from the time of formation or since the end of the previous financial year.
According to the substantial assets test, the total assets of the company at any time within the financial year must not exceed $500,000. For a parent company, the consolidated total assets of group at any time within the financial year must not exceed $500,000.
1. Engaging us as your Corporate Secretary 1 year or 2 years package
(Comes with Corporate Secretary includes the AR + AGM filing + Filing fee of $60)
2. Exempted from doing Unaudited Financial Statements
3. Your company is dormant, solvent and dormant from the time of formation or since end of previous financial year.
4. You have only minimal banking charges in your bank statements with no other revenue and expenses as mentioned in ACRA.