Does a dormant company in Singapore still need an audit and financial statements?

No, a dormant company is generally exempt from audit. In addition, if it meets all the Companies Act requirements, it may also be exempt from preparing and filing financial statements; if it does not meet them, it must prepare unaudited financial statements.

To be exempt from preparing and filing financial statements, a company generally must meet all of the following requirements.

• No significant accounting transactions during the financial year
• Dormant since incorporation or since the end of the previous financial year
• Total assets of S$500,000 or less during the financial year (on a consolidated group basis for a parent company)
• Not a listed company or a subsidiary of a listed company

Even if exempt from financial statements, the company must still file its Annual Return every year, and must continue to file corporate income tax with IRAS unless it has been granted a filing waiver.

Tax treatment can differ depending on the company's revenue, shareholder structure and transactions, so please consult an accounting professional before applying it.

The Lee Kim Alliance accounting team provides audit consultations.

As of November 2026, source: ACRA, ACRA, IRAS