Business Encyclopedia

A

Accounting and Corporate Regulatory Authority (ACRA)
Audited Financial Statement
Annual General Meeting (AGM)
Annual Report (AR)
Articles of Association
Apostille

B

BizFile
Business Grants Portal
Business Profile

C

Central Provident Fund (CPF)
Certificate Of Residence (COR)
Common Reporting Standard
Common Seal
Companies Act (Cap. 50)
Company Constitution
Company Secretary
Company Stamp
CorpPass

D

Dependant’s Pass
Directors’ Resolution in Writing (DRIW)
Dividend
Dormant Company
Double Taxation Agreement (DTA)
Due Diligence

E

Electronic Register of Members (eROM)
Employment Pass (EP)
EntrePass
Enterprise Development Grant (EDG)
Estimated Chargeable Income (ECI)
Exempt Private Company (EPC)

F

Financial Year End (FYE)
Form C-S/ C
Form C-S (Lite)
Fund Accounting

G

Goods and Services Tax (GST)

H

Hedge Fund

I

Import/Export License
Income Tax
Initial Public Offering (IPO)
Inland Revenue Authority of Singapore (IRAS)
Intellectual Property Office of Singapore (IPOS)
Interim Dividend
IR21 Form
IR8A Form

J

K

Know Your Customer (KYC)
Knowledge Capital

L

Letter of Consent (LOC)
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
Limited Partnership (LP)
Liquidation (Court Order/Compulsory)
Liquidation (Voluntary)
Long Term Visit Pass (LTVP)

M

Ministry of Manpower (MOM)
MTI

N

Nominee Director
Nominee Shareholder
National Registration Identity Card (NIRC)
Notice of Assessment (NOA)

O

P

Partnership
Personal Data Protection Act (PDPA)
Personalised Employment Pass (PEP)
Private limited company
Productivity Solutions Grant (PSG)
Permanent Resident (PR)

Q

Quickbook Accounting

R

Register of Charges
Register of Nominee Director
Register of Registrable Controllers (RORC)
Registered Office Address

S

S Pass
Share
SingPass
Small Company
Sole Proprietor
Special Employment Credit
Sponsored Employment Pass
Striking Off

T

Trademark
Temporary Bridging Loan
Temporary Employment Credit (TEC)

U

UEN
Unaudited financial statement
Undischarged Bankrupt

V

Variable Capital Company (VCC)
Venture Capitalist (VC)

W

Wage Credit Scheme
Withholding Tax (Section 45)

X

XBRL
Xero

Y

Year of Assessment (YA)

Z

Zero Rated Supplies
Zero-rised Financial Statement

Dormant Company

A dormant company is a company that has been inactive and has no accounting transactions for the entire financial year. The company that doesn’t sell or buy anything, pay salaries, employ staff, issue dividends, and receive returns from investments or any other income is deemed to be a dormant company. In Singapore, both ACRA and IRAS have slightly different criteria to declare a company dormant to provide the relevant exemptions.

Dormant Company as per ACRA

ACRA recognizes a company dormant if there are no accounting transactions for a given financial year, barring some exceptions:
  • Appointment of a company secretary or auditor.
  • Maintenance of books and registers.
  • Maintenance of registered office.
  • Payment of composition amount, fees, or fines as per any written law.
  • Taking of shares by a subscriber to the constitution in pursuance of an undertaking in the constitution.
  • Payments and receipts of a nominal sum not exceeding $5000.
Also, to get the status of a dormant company and be exempted from preparing financial statements and hold AGMs, the company must be:
  • Dormant since its formation or the end of the previous financial year.
  • Not a listed or a subsidiary of a listed company.
  • Not hold assets more than $500,000 including the assets of any subsidiaries, anytime within the previous financial year.

Dormant Company as per IRAS

As per IRAS, a company is given the status of a dormant company if it has not earned any revenue or income during the financial year even though it has incurred some expenses. A dormant company will have to e-file its Income Tax Returns (Form C-S/C) every year unless it has been granted an exemption. The exemption can be requested via the Apply for Waiver to Submit Tax Return (Dormant Company) e-Service. The conditions to get this exemption are:
  • Must be dormant and should have submitted the Form C-S/C, financial statements, and tax computations up to the date of cessation of business.
  • Must not own any investments and if they do, they should not derive any income from the same.
  • Before the application, the company should be de-registered for Goods and Services Tax (GST).
  • Must not have any intention of restarting the business within the next two years.

Need for maintaining a Dormant Company

If a company wants to stop its operations, it can either strike it off or keep it dormant. Keeping it dormant for a given time works out to be cost-effective in case one wants to restart their operations in the future. With a small annual fee, you can retain your brand name, goodwill, patents, licenses, and intellectual property associated with the company.

Recommencement of a Dormant Company

A dormant company can be easily recommenced. Once a company starts earning any income, they need to inform IRAS within one month of the date of commencement of business or receiving the income by writing to ctmail@iras.gov.sg to request an Income Tax Return.