Dormant Company Accounting Services in Singapore
Understanding Dormant Company Accounting
Dormant Company Accounting represents a specialised branch of accounting services tailored for businesses that have temporarily ceased active operations but remain legally registered entities.
In Singapore, a dormant company is defined differently by the Accounting and Corporate Regulatory Authority ACRA and the Inland Revenue Authority of Singapore IRAS. While ACRA considers a company dormant when it has no significant accounting transactions (except basic statutory expenses), IRAS classifies it as dormant when the company has no income or revenue for the entire basis period. While they might sound similar, they are essentially different interpretations.
Despite its inactive status, every dormant company must maintain proper accounting records and comply with statutory requirements, making professional dormant company accounting services essential for business continuity.
What Constitutes a Dormant Company in Singapore
A company achieves dormant status when it ceases all significant business activities, including trading operations, employment of staff, dividend distributions, and revenue generation. However, certain essential transactions are permitted without affecting dormant status, such as the appointment of a company secretary and auditors, the maintenance of a registered office, the keeping of statutory registers, and the payment of nominal amounts not exceeding S$5,000.
To qualify as dormant under ACRA regulations, the company must not be listed or a subsidiary of a listed company, and its total assets cannot exceed S$500,000 at any point during the financial year.
How Often Should Dormant Company Accounting Be Prepared
While dormant companies typically require yearly accounting services, the frequency can vary depending on specific business circumstances. For companies that are part of a larger group structure, monthly or quarterly accounting may still be necessary despite having minimal transactions. This requirement often arises from consolidation needs, where parent companies must consolidate subsidiaries' financial information regardless of their activity level.
Group companies may need regular reporting cycles to meet holding company requirements, banking covenant obligations, or internal management reporting standards, even when individual subsidiaries remain operationally dormant.
Distinguishing Between Accounting for Dormant and Accounting for Small Companies
The distinction between dormant and small companies is crucial for compliance purposes. In some cases, there may be confusion between a dormant company and a company with minimal transactions.
A dormant company has ceased all significant business activities. It generates no income, while a very small company with minimal transactions may still be in operation but at a significantly reduced rate.
While small companies in Singapore can qualify for audit exemptions if they meet specific criteria under the Companies Act, they are still expected to prepare financial statements and tax computations for tax filing requirements.
SPV Accounting – What are they?
SPVs (known as special purpose vehicles) are entities created for specific purposes. These companies may be dormant for a period of time before springing into action to serve their designated purpose. Some SPVs are also used for very specific purposes and may also fall into the category of companies with minimal transactions. In both cases, SPV Accounting is critical to ensure that these companies are compliant.
Examples of SPVs include companies specifically used to hold financial instruments, maritime industries, and temporary holding vehicles for mergers and acquisitions.
Managing Dormant Company—Contact Us Today
Managing dormant company requirements shouldn't overwhelm your resources. Our expert team simplifies the entire process, ensuring full compliance while you focus on strategic planning. Get in touch with us now to discover how our tailored dormant company accounting services can protect your business interests.
The Necessity of Accounting for Dormant Companies
Dormant Company Accounting serves several critical purposes beyond mere compliance. It maintains the company's legal standing, preserves intellectual property and brand protection, and ensures readiness for business resumption. Proper accounting records enable smooth reactivation when business conditions improve, while also satisfying regulatory authorities that the company remains in good standing.
Additionally, accurate dormant company accounting facilitates potential mergers, acquisitions, or restructuring activities, as investors and partners require clear financial histories even for inactive entities.
In-House Accounting vs Professional Outsourcing for Dormant Companies
While maintaining in-house accounting staff for dormant companies is often not cost-effective, outsourcing to professional service providers offers significant advantages. Our Dormant Company Accounting services provide specialised expertise at a fraction of in-house costs, ensuring compliance with both ACRA and IRAS requirements while maintaining audit readiness.
Professional outsourced accounting ensures proper handling of consolidation requirements for group companies, timely statutory filings, and seamless transition support when companies reactivate. Our experienced team manages complex regulatory changes and maintains up-to-date knowledge of evolving compliance requirements.
Transparent Pricing for Dormant Company Accounting
Payroll Services
Our competitive pricing structure for Dormant Company Accounting starts from S$200-S$800 annually, depending on transaction complexity and specific requirements. We offer a package pricing for those requiring management accounts, annual return filing, and corporate tax return preparation services.
For companies requiring monthly or quarterly reporting due to group consolidation needs, customised packages are available with transparent pricing based on transaction volume and reporting frequency. All fees are clearly outlined upfront with no hidden charges.
Our Commitment to Excellence
With decades of experience serving Singapore's business community, we understand the unique challenges facing dormant companies. Our commitment extends beyond basic compliance to strategic partnership, ensuring your dormant entity remains protected and ready for future opportunities.
We provide personalised attention to each client, proactive deadline reminders, and seamless coordination with related corporate secretarial and tax services. Using accounting software to support your business operations, we ensure that statutory obligations are adhered to. Our integrated approach ensures all aspects of your dormant company's requirements are professionally managed under one roof.
