A dormant company in Singapore with no business activities and has not generated any revenue for the entire financial period. However, such a company is required to submit Income Tax Return (ITR) unless it has been granted a waiver for the submission of ITR. Since such a company does not generate any income, the most suitable action may close it down.
How to Close a Dormant Company
The most appropriate way of closing a dormant company in Singapore is by striking it off. The process involves sending an application to the Accounting and Corporate Regulatory Authority (ACRA) seeking to strike off the name of the company from the Companies Register. The company secretary, a company director, or a corporate service provider can submit the application online via the ACRA BizFile website. The cost of the same would vary according to the compliance status, complications. The cost may vary and typically starts from $ 500 or so. You can check at https://gstraits.com for detailed cost.
When submitting the application, one should indicate that the company has not conducted any business transactions since its incorporation date. It is also important to state that the company did not open or close any bank account during the period. Once the application has been submitted, it will be processed within 5 working days.
Requirements for Striking off a Dormant Company
• The company has since ceased trading or never commenced business activities after it was incorporated
• No outstanding tax liabilities with IRAS
• No contingent or current liabilities or assets
• No ongoing court proceedings
• No debts owed to government authorities
• Finalized accounts tell the date of cessation are provided
• Written consent from the majority of the shareholders
• No outstanding changes with the companies’ register
Possible Outcomes of the Application
After submission of the application, ACRA will either approve or reject the application. If the application is approved, ACRA sends a striking off notice to the IRAS, a company registered offices, and company secretary and directors’ residential addresses. If no objection is presented after 1 month, ACRA will publish the name of the company in the Government Gazette (First Gazette Notification). If 3 months passes with no objection, then ACRA will publish the company’s name in the Government Gazette (Final Gazette Notification) and strike off the name from the register. The entire process to strike off the company will take at least 5 months.
If the application to strike off the company was rejected by ACRA, the company directors will need to take the necessary actions to make sure the meet all the strike-off requirements. Once the strike off requirements have been met, they can file the application again.
What If Someone Lodges an Objection
If an interested person, such as a debtor lodges an objection, ACRA will withhold the application. A notification will be sent to the company requiring them to resolve the matter within 2 months. Once the matter has been resolved, the objector must lodge Clearance of Objection to Striking Off through the Bizfile for the striking off process to be finalized. However, if the matter is not resolved within 2 months, the application will lapse. The status of the company will be reverted to live, with the option of submitting a new striking off application once the matter has been resolved.
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