If your company’s year-end ends after the date of commencement of the Companies (Amendment) Act 2014, i.e., 3 January 2016 and is a dormant non-listed company (other than a subsidiary of a listed company), your company is exempt from requirement to prepare financial statements, if your company:

• ·       fulfills the substantial assets test;
• ·       has been dormant from the time of formation or since the end of the previous financial year; and
• ·       the directors of the company have lodged with the Registrar a statement by the directors that:
  (i) the company has been dormant for the period set out in paragraph (b), as the case may be;
  (ii) no notice has been received under section 201A(3) of the Act in relation to the financial year; and
  (iii) the accounting and other records required the Act to be kept by the company have been kept in accordance with section 199 of the Act.

The substantial assets test is that the total assets of the company at any time within the financial year must not exceed $500,000. For a parent company, the consolidated total assets of group at any time within the financial year must not exceed $500,000.

Dormant listed companies and their subsidiaries, and dormant unlisted companies which do not fulfil the substantial asset test must prepare financial statements but are exempt from audit. This remains unchanged from the current position.

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