The interpretation of a dormant company is somehow differ between ACRA (Accounting and Corporate Regulatory Authority) and IRAS (Inland Revenue Authority of Singapore) in Singapore.

Dormancy according to ACRA

As per ACRA, a company is considered as dormant during n accounting period where no business transactions occurs. However, operating expenses to maintain the company such as secretarial fees is allowed.

ACRA further clarifies that the following transactions do not qualify a dormant company to be active. Transactions that do not impact the dormancy of a company include:

  • Secretary appointment of a company
  • Auditor’s appointment
  • Expenses incurred in relation to maintenance of registered business address
  • Expenses for bookkeeping and registers
  • payment in the nature of Penalty or fine to the business Registrar
  • Taking up of shares in the dormant company by a subscriber to the memorandum

Dormancy according to IRAS

Where there is no revenue or income during a given financial period, a company is considered dormant even when it may have booked or incurred expenses.mancy.