Striking off your company tends to be appropriate where there’s no reasonable prospect of you having a future use for it. However, keeping a company dormant is preferable if there may be future use for the company. This will save the time and cost of incorporating another company again in the future.
A dormant company holds this status only temporarily. Once the company starts having activities, they will have to start submitting financial statements and continue to file its Annual Returns and Corporate Tax Returns as an active company.
To put it simply, the Accounting and Corporate Regulatory Authority (ACRA) defines a dormant company as a business that has not conducted any accounting transactions for a given financial period.
However, your business is still allowed to execute a limited number of transactions in its dormant status to assist the business with cost of compliance and a range of administrative expenses. This most notably excludes:
On the plus side, if your company is recognised as a dormant company by ACRA, it will be exempted from submitting financial statements. However, the company will still have to file their Annual Returns, and it must file its corporate tax return in Form C-S/C for Dormant Company via e-Filing.
After choosing the package that suits you the best, our team will provide a handover template to be sent to your previous secretary to ensure the proper handover of all secretarial documents and their resignation letter.
After which, we will coordinate with them on the collection of files. Once the resignation letter has been received, we will proceed to lodge the necessary changes with the Accounting and Corporate Regulatory Authority (ACRA).