A dormant company is a company that carries out no business activities in the given period of time. Dormant companies do not engage in buying/selling for profit, not carrying on business or profession, providing services, earning interest, managing investments or receiving income.

United Kingdom

In the United Kingdom, a dormant company is a company whose transactions have been limited to payment for shares taken by subscribers to the memorandum of association, fees paid to the Registrar of Companies for a change of company name, the re-registration of a company and filing annual returns and payment made in respect of

civil penalties A civil penalty or civil fine is a financial penalty imposed by a government agency as restitution for wrongdoing. The wrongdoing is typically defined by a codification of legislation, regulations, and decrees. The civil fine is not considered ...

imposed by the

Registrar of Companies A company register is a register of organizations in the jurisdiction they operate under. A statistical business register has a different purpose than a company register. While a commercial/trade register serves a purpose of protection, account ...

for delivering accounts to the Registrar after the statutory time allowed for filing. Under the new Companies Act there are exceptions for certain companies. For example, some financial and

insurance companies Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

are under obligation to file their full accounts, regardless of their status.

Singapore

In Singapore, a dormant company is defined by two authorities:

Accounting and Corporate Regulatory Authority The Accounting and Corporate Regulatory Authority (ACRA) is a statutory board under the Ministry of Finance of the Government of Singapore. ACRA is the regulator of business registration, financial reporting, public accountants and corporate ser ...

(ACRA) and

Inland Revenue Authority of Singapore The Inland Revenue Authority of Singapore (IRAS) is a statutory board under the Ministry of Finance of the Government of Singapore in charge of tax collection. History Early beginnings The Singapore Income Tax Department was created in 1947 t ...

(IRAS). For ACRA the determining factor for dormancy is the lack of transactions. For IRAS, a company that does not generate income is considered dormant. The companies deemed dormant by the authorities can be exempted from filing annual financials and submitting tax return. For the latter, a waiverIRAS - Managing Taxes for Dormant Companies
/ref> has to be issued by IRAS.

References

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