Yes. Financial statements showing no transactions must still be prepared by an accountant and audited by a licensed CPA before the AGM. The auditor's report must accompany the statements when submitted to both the DBD and the Revenue Department. A dormant year creates no exemption from the audit requirement — and the audit must be completed before the AGM can be held, which means it must be timed to allow all subsequent filings within their statutory deadlines.

The same deadlines apply as for an active company. For December year-end companies: AGM by 30 April; DBD submission within one month of the AGM (by 31 May); Revenue Department submission within 150 days of year-end (by 30 May). These are fixed statutory dates and carry the same penalty consequences for late filing regardless of whether the company was dormant during the year.

The penalties are identical to those for an active company: DBD daily fines for late financial statement submission; Revenue Department surcharges on late nil tax returns. Beyond financial penalties, a dormant company that persistently misses filings will receive DBD notices to its directors, affecting the company's standing and its ability to obtain current corporate documents. Each year of missed filings also compounds the recovery cost if the company is ever reactivated or needs to be formally dissolved.

This depends on whether the company may be used again, whether it holds assets or licences, and whether the annual cost of maintenance is justified. A dormant company in good standing — with all filings current — has value as a ready vehicle that can resume operations without the cost and delay of new incorporation. A company that has been allowed to fall into non-compliance becomes increasingly expensive to rehabilitate. If the company will never be used again, dissolution may be more cost-effective. UnionSPACE can advise on both options.

Scenario S.27 is specifically designed for companies with no business activity during the year — the documentation is simpler, the financial statements are zero-activity, and the AGM agenda is limited to the statutory minimum. Scenario S.28 covers the full AGM compliance process for active companies with substantive financial statements and a broader agenda. If the company had any transactions — even minor ones — Scenario S.28 is the appropriate service. We confirm the correct scenario at the outset based on the company's activity position.