A dormant Singapore company is one that is not carrying on business and has had no significant accounting transactions during the financial year. Dormancy is not, in itself, a closure event — the company continues to exist on the ACRA register, continues to incur annual filing obligations, and continues to need a registered office, a corporate secretary, and at least one local director. For many founders sitting on a shell company they no longer need, the question is not whether to close it but how.
Singapore law offers three routes to formally close a dormant company: members’ voluntary winding up (MVL), court-ordered winding up, and ACRA striking-off. Each has a different cost, timeline, and risk profile. This 2026 guide walks through the legal basis, who can apply, the step-by-step process, the documents required, timelines and costs, and what happens after the company is dissolved.
What Counts as a Dormant Company
Under Section 205B(2) of the Companies Act 1967, a company is “dormant” if no accounting transactions have occurred during the relevant financial year other than:
- Statutory filing fees and ACRA charges;
- Banking charges by financial institutions;
- The issue of subscriber shares; and
- Maintaining the company’s registered office and secretarial services.
A dormant company still has obligations:
- Filing annual returns with ACRA;
- Preparing financial statements (simplified for dormant companies);
- Filing Form C/C-S with IRAS (with a nil tax computation);
- Maintaining a registered office and corporate secretary; and
- Maintaining at least one local director.
The annual cost of keeping a dormant company alive — secretarial, registered office, filing fees — typically runs S$1,500 to S$3,000 per year. For owners who do not intend to revive the company, formal closure usually makes financial sense within two to three years.
Legal Basis for Closure: Three Options
| Route | Statutory basis | Best for | Typical cost | Timeline |
|---|---|---|---|---|
| ACRA strike-off | Section 344 Companies Act | Genuinely dormant, no assets/liabilities | S$500–S$2,000 | 5–6 months |
| MVL (Members’ Voluntary Winding Up) | Sections 160–162 IRDA 2018 | Solvent companies with assets to distribute | S$8,000–S$25,000 | 9–18 months |
| Court-ordered winding up | Section 125 IRDA 2018 | Insolvent companies or disputes | S$15,000–S$50,000+ | 12–24 months |
For most dormant companies, ACRA strike-off is the right answer. MVL is needed when there are still assets, share capital to be returned, or contingent liabilities to be discharged. Court-ordered winding up is rare for dormants — and is typically only used where there is a creditor in dispute or a director-shareholder deadlock.
Option 1: ACRA Strike-Off (Section 344)
The ACRA strike-off process under Section 344 of the Companies Act is the cheapest and fastest route. ACRA may strike a company off the register if it is satisfied that the company is not carrying on business or is no longer in operation.
Eligibility
To apply, the company must:
- Have ceased business or not commenced business since incorporation;
- Have no outstanding tax liabilities with IRAS;
- Have no outstanding debts owing to other government agencies;
- Have no current or contingent assets and liabilities;
- Have closed all bank accounts;
- Have no outstanding ACRA filings; and
- Not be involved in any court proceedings.
Step-by-step process
- Hold a board meeting and pass a directors’ resolution to apply for strike-off.
- Close all bank accounts and ensure no contingent liabilities.
- Obtain a tax clearance letter from IRAS (Form IR21 if the company has employees).
- File the strike-off application via BizFile+ with supporting documents.
- ACRA reviews the application and, if satisfied, issues a Notice of Intention to Strike Off.
- A 60-day public notice period begins, during which any creditor or interested party can object.
- If no objection, ACRA publishes a final notice and after a further 90 days, the company is struck off.
For more on what to do if you change your mind, see our guide on objecting to an ACRA strike-off.
Option 2: Members’ Voluntary Winding Up (MVL)
MVL under Sections 160–162 of the Insolvency, Restructuring and Dissolution Act 2018 is for solvent companies with assets to distribute. The directors make a statutory declaration of solvency, declaring that the company will be able to pay its debts in full within 12 months of the commencement of winding up. The members then resolve to wind up the company and appoint a liquidator.
When MVL is appropriate
- The dormant company holds property, intellectual property, or investments;
- There is share capital to be returned to shareholders;
- There are contingent liabilities (e.g. warranties from past business) that need a formal liquidator’s discharge;
- The company is part of a larger group restructuring;
- The shareholders want a clean, formally-recorded closure for due diligence purposes (e.g. preparing for a sale of the parent group).
For a deeper dive on MVL mechanics, see our Members’ Voluntary Winding Up guide.
Option 3: Court-Ordered Winding Up (Section 125 IRDA)
Court-ordered winding up is rarely used for dormant companies, but it remains an option in three scenarios:
- Insolvent dormant: the company has unpaid creditors that cannot be discharged via MVL;
- Director-shareholder dispute: the directors and shareholders cannot agree to wind up voluntarily;
- Just and equitable grounds: even where solvent, a court may wind up on just and equitable grounds if relationships have broken down.
Who can apply: creditor, contributory (shareholder), the company itself, the official receiver, the liquidator (in certain circumstances), or the Minister.
Step-by-step process
- File winding up petition with the General Division of the High Court using Form A1 under the Companies Winding Up Rules.
- Serve the petition on the company and other interested parties.
- Advertise the petition in the Government Gazette and a local newspaper (see our advertising a winding up petition guide).
- First hearing — court considers whether to make a winding up order or adjourn.
- If the order is granted, the Official Receiver becomes the provisional liquidator, or the court appoints a private liquidator.
- The liquidator collects in any remaining assets, settles claims, and prepares the final account.
- The company is dissolved upon completion.
Documents Required
| Document | Strike-off | MVL | Court WU |
|---|---|---|---|
| Directors’ resolution | Yes | Yes | Yes (if company petitions) |
| Statutory declaration of solvency | No | Yes | No |
| Members’ special resolution | No | Yes | If applicable |
| IRAS tax clearance | Yes | Yes | Yes |
| Bank account closure letters | Yes | Yes | Yes |
| Court petition (Form A1) | No | No | Yes |
| Gazette/newspaper notice | ACRA does this | Yes | Yes |
| Final liquidator’s account | No | Yes | Yes |
Timeline and Costs Comparison
| Route | Time to dissolution | Professional fees | Government fees |
|---|---|---|---|
| Strike-off | 5–6 months | S$500–S$2,000 (secretarial) | Nil — ACRA application is free |
| MVL | 9–18 months | S$8,000–S$20,000 (liquidator, lawyer, secretary) | ~S$700 (gazette + notices) |
| Court WU | 12–24 months | S$15,000–S$50,000+ (lawyer, liquidator, court) | S$1,500+ (filing fees, gazette, court fees) |
What Happens After the Order
Once a company is dissolved — whether by strike-off, MVL, or court order — it ceases to exist as a legal entity. Key consequences:
- Bank accounts must be closed before dissolution; any residual cash escheats to the Official Assignee;
- Any remaining assets that come to light post-dissolution vest in the Official Assignee under bona vacantia;
- Director, secretary, and shareholder records remain on ACRA’s system but are marked as dissolved;
- The company can be restored by court application within six years if a creditor or interested party can show good reason — see our guide on company assets after strike-off;
- Directors of a dissolved company may still face personal liability for pre-dissolution acts or omissions.
FAQ
Q1: Can I just stop filing and let ACRA strike off the company automatically?
ACRA can and does strike off companies for persistent non-filing. However, doing so exposes the directors to fines and possibly to director disqualification for repeat non-compliance. A voluntary strike-off is faster, cleaner, and avoids any directorial sanction.
Q2: My dormant company has a small balance in its bank account. Can I still strike off?
No. Strike-off requires that the company has no assets and the bank account is closed before application. The cleanest approach: declare a final dividend (or repayment of share capital), close the account, then apply.
Q3: How long after dissolution can a creditor reinstate the company?
Up to six years for strike-off; up to two years for MVL. Court-ordered winding up dissolutions are harder to reverse but technically possible within similar limits in extraordinary circumstances.
Q4: Do I need a lawyer to apply for strike-off?
No — strike-off is administrative and most secretarial firms (including RCS) can prepare and file the application. A lawyer is required only for court-ordered winding up and is recommended for MVL when there are contingent liabilities.
Q5: My dormant company holds intellectual property. Strike-off or MVL?
MVL. Strike-off would result in the IP vesting in the Official Assignee. MVL allows the liquidator to assign or sell the IP and distribute the proceeds.
Q6: Can a dormant company be wound up under the just and equitable test?
Yes — and it is occasionally used where there is a 50/50 shareholder deadlock about whether to revive or close the dormant entity. See our guide on shareholder deadlock just and equitable winding up.
External References
- Companies Act 1967 — Singapore Statutes Online
- Insolvency, Restructuring and Dissolution Act 2018 — SSO
- ACRA — How to Close a Local Company
- Singapore Courts
- JustFollowLaw — Singapore legal guides
Need Help With This Matter?
If your company is facing this situation, Raffles Corporate Services can assist with the groundwork — ACRA filings, compliance documentation, and coordinating with experienced Singapore law firms. For matters requiring court proceedings, we work with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice.
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This article is for general information only and does not constitute legal advice. For advice specific to your situation, please consult a qualified Singapore Advocate and Solicitor.
— The Editorial Team, Raffles Corporate Services