A company is dormant if it has no accounting transactions during the financial period. This covers a company that has never started business since incorporation and one that has ceased trading – the original wording of this answer only covered the first case.
The two regulators apply the concept slightly differently. For IRAS, a company is dormant if it did not carry on business and had no income for the whole of the basis period. It must still file its Corporate Income Tax Return by 30 November using the simplified Form for Dormant Company, unless IRAS has granted a waiver to file. For ACRA, a dormant company may be exempt from preparing financial statements and from audit if it meets the statutory conditions, but it must still file its annual return.
Certain transactions are disregarded when deciding whether a company is dormant – for example the appointment of a secretary or auditor, maintenance of the registered office, and fees paid to ACRA. However, incurring ordinary costs such as bank charges or professional fees does not necessarily stop a company being dormant for IRAS purposes.
If the company recommences business or receives income, it must notify IRAS within one month. Apexia can handle dormant filings and apply for the IRAS waiver where appropriate.