If your company has stopped trading, you might be wondering what you still have to do. The honest answer is: less than a trading company, but not nothing, and “dormant” means something different to ACRA than it does to IRAS. Here’s how each one sees it.
Last reviewed 17 October 2026. Sources: ACRA and IRAS.
Two agencies, two tests
| ACRA | IRAS | |
|---|---|---|
| What’s it about | Whether you must prepare and file financial statements | Whether you must file a corporate tax return |
| The test | A “dormant relevant company” under section 201A of the Companies Act | A waiver you apply for; dormant companies must file unless IRAS has granted one |
| Default if you do nothing | Financial statements are needed unless you meet every condition | You still file Form C-S, C-S (Lite) or Form C |
Being dormant for one doesn’t make you dormant for the other. It’s worth checking both.
ACRA: do you need financial statements?
A dormant relevant company doesn’t have to prepare or file financial statements, but it has to meet all of these:
- Total assets did not exceed S$500,000 at any time during the financial year (a parent company uses consolidated group assets).
- There were no significant accounting transactions during the financial year, or since formation if it’s the first year.
- It isn’t a listed company, or a subsidiary of one.
The word to watch is “significant”. ACRA’s page doesn’t list which payments count, and we won’t guess for you. If your account has had bank charges, a small payment or an unexpected receipt, send us the details and we’ll tell you how we read it. Dormant companies are also exempt from audit under section 205B.
IRAS: the tax waiver
IRAS says a dormant company must file its corporate income tax return unless IRAS has given it a waiver. To apply, the company must:
- be dormant, and have already filed its Form C-S or Form C with accounts and tax computations
- hold no investments, or earn nothing from any it holds (interest, dividends and rent are the kinds of income IRAS mentions)
- be de-registered for GST first, if it was GST-registered
- have no plans to restart business within the next 2 years
You apply online through myTax Portal with Corppass. Each company can apply once, and IRAS aims to process the application within 2 months. After approval IRAS stops issuing the return. If the company restarts or receives income, it must tell IRAS within a month. A foreign company’s Singapore branch isn’t eligible.
What we do
- Work out which category you’re in for ACRA and for IRAS, using your bank statements and ledger.
- Prepare what’s needed. If you’re not exempt from preparing statements, we prepare them (see unaudited accounts), and the right XBRL filing.
- File the annual return and tax return on time, or apply for the IRAS waiver.
- Plan the restart. If activity picks up, we help you move back to normal bookkeeping and filing.
Example (illustration only)
ABC Pte Ltd stopped trading in 2025. Its only transaction since is a small bank fee, and its total assets are under S$500,000. We read ACRA’s test against the ledger and tell the directors whether the fee changes anything. We also check IRAS’s waiver conditions, in particular that the company holds nothing earning income and has no plans to restart within 2 years.
Questions people ask
Does being dormant mean I do nothing? No. Annual returns still go to ACRA, and IRAS still expects a tax return unless you’ve got a waiver.
Will one bank fee ruin it? ACRA’s test says “significant” accounting transactions, and its page doesn’t define the term. Tell us what happened and we’ll give you our reading.
Can I strike the company off instead? If it has nothing to settle, see strike-off.
What if we start trading again? Tell IRAS within a month if you hold a waiver. We’ll rebuild your records from there.
Sources
- ACRA: Financial statements, filing requirements and exemptions
- IRAS: Dormant companies
- IRAS: FAQs, apply for waiver to submit tax return (dormant company)
- Audit exemption (s 205B): our audit exemptions guide
General information, not professional advice for your specific situation.
Not sure if you qualify?
Send us your last bank statement and tell us when trading stopped, and we’ll tell you where you stand with ACRA and IRAS. Ask us to review your dormant company.