{"id":1844,"date":"2022-07-20T13:31:27","date_gmt":"2022-07-20T05:31:27","guid":{"rendered":"https:\/\/wordpress-1060383-4052188.cloudwaysapps.com\/?p=1844"},"modified":"2022-07-26T17:29:50","modified_gmt":"2022-07-26T09:29:50","slug":"filing-obligations-of-dormant-companies","status":"publish","type":"post","link":"http:\/\/webpreview.sg\/mms\/filing-obligations-of-dormant-companies\/","title":{"rendered":"Filing obligations of dormant companies"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1844\" class=\"elementor elementor-1844\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-14ea1614 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"14ea1614\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-280712e8\" data-id=\"280712e8\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-10583e9 elementor-widget elementor-widget-text-editor\" data-id=\"10583e9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Many company owners and officers erroneously assume that as long as their companies are not active, there is no need for them to fulfil their filing obligations with ACRA and IRAS. This has led many companies to be fined for failure to meet these obligations.<\/p><p>As ACRA and IRAS have differing definitions for a dormant company, understanding the difference is crucial in knowing the obligations of a dormant company.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4f7f1df elementor-widget elementor-widget-spacer\" data-id=\"4f7f1df\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-003eadd elementor-widget elementor-widget-heading\" data-id=\"003eadd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">ACRA\u2019s definition of dormant and obligation for filing<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5d9254f elementor-widget elementor-widget-text-editor\" data-id=\"5d9254f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Under the Companies Act, a company is dormant if it has no accounting transactions during a financial year. A company is considered active if it has transactions that affect its financial statement (FS), namely transactions leading to entries into its revenue or expenses column in its FS. These transactions include:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c7d5ce0 custom-red-bullets elementor-widget elementor-widget-text-editor\" data-id=\"c7d5ce0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>Selling goods to customers<\/li><li>Purchasing assets from suppliers<\/li><li>Selling assets (e.g. property, machinery) to a third-party<\/li><li>Issuing a dividend to shareholders<\/li><li>Borrowing funds from lenders<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-68aceb2 elementor-widget elementor-widget-text-editor\" data-id=\"68aceb2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>However, a company will still be defined as a dormant company if a transaction arises from one of the following:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-07f5ff1 custom-red-bullets elementor-widget elementor-widget-text-editor\" data-id=\"07f5ff1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>A subscriber to the\u00a0company\u2019s constitution\u00a0takes shares in the company<\/li><li>The appointment of a\u00a0<a href=\"https:\/\/wordpress-1060383-4052188.cloudwaysapps.com\/corporate-secretarial-services\/\">company secretary<\/a><\/li><li>The appointment of an auditor<\/li><li>The maintenance of a\u00a0<a href=\"https:\/\/wordpress-1060383-4052188.cloudwaysapps.com\/incorporation-services\/registered-address-service\/\">registered office<\/a><\/li><li>The keeping of books and registers<\/li><li>The payment of any fee (including any penalty or interest for late payment) payable under any written law.<\/li><li>The payment or receipt by the company of a nominal sum not exceeding $5,000<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a70118c elementor-widget elementor-widget-text-editor\" data-id=\"a70118c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>A dormant company is still required to file its annual returns with ACRA. However, a non-listed dormant company that has total assets less than or equal to $500,000 may be exempted from preparing FS. In addition, if the dormant company is a parent company, the consolidated total assets of the group must not exceed $500,000. All listed companies or subsidiaries of a dormant listed company are still required to prepare their FS.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bc868a8 elementor-widget elementor-widget-heading\" data-id=\"bc868a8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">IRAS definition of dormant and obligation for filing<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0672196 elementor-widget elementor-widget-text-editor\" data-id=\"0672196\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>IRAS defines a dormant company as one that does not carry on business and has no income for the whole basis period. For example, suppose your company did not carry on business and had no income for the entire financial period ending in 2021. In that case, it is regarded as a dormant company for the Year of Assessment (YA) 2022.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-399d52f elementor-widget elementor-widget-text-editor\" data-id=\"399d52f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Even if the company was dormant for a particular YA, it is still required to submit its Income Tax Return (Form C-S\/ C) unless the company has been granted a waiver on Income Tax Return Submission. If a company has been given a waiver, it must notify IRAS within one month of any resumption of business.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-de44e7f elementor-widget elementor-widget-text-editor\" data-id=\"de44e7f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>To better understand the above differences, seek the assistance of a company providing <a href=\"https:\/\/wordpress-1060383-4052188.cloudwaysapps.com\/corporate-secretarial-services\/\">corporate secretarial services<\/a> or <a href=\"https:\/\/wordpress-1060383-4052188.cloudwaysapps.com\/taxation-services\/corporate-income-tax-services\/\">corporate income tax services<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2ede61d elementor-widget elementor-widget-spacer\" data-id=\"2ede61d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7a9ee7e3 elementor-widget elementor-widget-html\" data-id=\"7a9ee7e3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"text-center tab-contact-btn\"> <a class=\"default-btn red\" href=\"https:\/\/wordpress-1060383-4052188.cloudwaysapps.com\/contact-us\/\">Get In Touch<\/a><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6f983722 elementor-widget elementor-widget-spacer\" data-id=\"6f983722\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Many company owners and&#8230; <\/p>\n","protected":false},"author":10,"featured_media":1848,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[10],"tags":[],"class_list":["post-1844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ongoing-compliance-for-singapore-companies","entry"],"acf":[],"_links":{"self":[{"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/posts\/1844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/comments?post=1844"}],"version-history":[{"count":0,"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/posts\/1844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/media\/1848"}],"wp:attachment":[{"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/media?parent=1844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/categories?post=1844"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/webpreview.sg\/mms\/wp-json\/wp\/v2\/tags?post=1844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}