What is dormant company?
A dormant company in Singapore is a company that has been registered with the Accounting and Corporate Regulatory Authority (ACRA) but is not actively engaged in business operations. Dormant companies are typically registered for future use or as a holding company, and do not generate any income or incur any expenses.
In order to be classified as a dormant company in Singapore, a company must meet certain criteria, such as not having any assets or liabilities, not having any employees, and not having any transactions or activities that would require it to file tax returns or annual returns with ACRA. Dormant companies are not required to file annual returns with ACRA, and are exempt from certain taxes and fees.
However, dormant companies are still required to maintain a registered address and to appoint at least one director who is a resident of Singapore. They are also required to notify ACRA if there are any changes to their status or if they become active and engage in business operations.
Overall, a dormant company in Singapore is a company that is registered but not actively engaged in business operations. It is a useful option for companies that are registered for future use or as a holding company, and can provide certain benefits, such as tax exemptions and exemptions from certain filing requirements.
What do I need to do with Singapore dormant company?
If you want to reactivate your dormant company and start conducting business again, you will need to update your company’s records with ACRA and ensure that you meet all the necessary requirements for conducting business in Singapore. This may include obtaining the necessary licenses and permits, registering for relevant taxes, and complying with other legal and regulatory requirements.
If you no longer wish to keep your dormant company, you can also choose to strike it off the register or dissolve it. This will involve following a specific process and fulfilling certain requirements, such as settling any outstanding liabilities and obtaining the necessary approvals.
It is important to note that the specific steps you need to take will depend on the status of your company and the nature of your business. It is recommended that you seek legal and professional advice to ensure that you meet all the necessary requirements and take the appropriate action for your company.