All Singapore companies regardless of their size and business activities must follow certain legal obligations annually. Compared to other countries, Singapore company’s obligations are more simple and straightforward. However, it is quite still difficult for busy businesses to remember a deadline which can result in penalties.
In fact, a Singapore company is required to fill to both IRAS and ACRA some type of reports every year as mentioned on this article:
- ACRA: The Accounting and Corporate Regulatory Authority is a statutory board under the Ministry of Finance of the Singapore Government
- IRAS: The Inland Revenue Authority of Singapore is a statutory board of the Singapore Government under the Ministry of Finance of the Singapore government in charge of tax collection.
To help you to understand the compliance requirements, read following article to know annual filing requirements you need to fulfill to comply with Singapore company law.
Preparation of Financial Statements
Based on your company’s financial activities during the accounting year, you must prepare your annual financial statements in accordance with the Financial Reporting Standards of Singapore. The financial statements should consist of Statement of Comprehensive Income (i.e. Profit and Loss Account), Statement of Financial Position (i.e. Balance Sheet), Cash Flow Statement, and Statement of Changes in Equity.
Audit of Financial Statements
After the financial statements are completed, the company may be required to have its financial statements audited if the company meets any 2 of the following 3 conditions:
- Total annual revenue exceeding S$10 million;
- Total assets exceeding S$10 million; or
- Has more than 50 employees
Filing of Estimated Chargeable Income (ECI)
Singapore companies are required to declare the revenue amount and Estimated Chargeable Income (ECI) by filing the ECI form with Inland Revenue Authority of Singapore (IRAS) within 3 months of the Financial Year End for the company. Even if the company estimates its chargeable income as zero, it still has to file a “Nil” ECI.
Annual General Meeting (AGM)
An AGM is a mandatory annual meeting where the company presents its financial statements before the shareholders to give a clear report on the financial position of the business.
Below are the key Annual General Meeting rules that apply to private limited companies:
- Companies must hold the first AGM within the first 18 months after incorporation
- No more than 15 months can elapse between AGMs
- All accounts must be updated no more than 6 months before an AGM
- AGMs can be held outside of Singapore
Note: Singapore Company Law allows private limited companies to forgo an AGM if all members of the company agree to a resolution to dispense the meeting. However, the company is still required to submit its Annual Return to ACRA.
Annual Return (AR) is submitted by the company to ACRA within 1 month of its AGM. Particulars of the company officers, registered address, and auditors (if applicable) must be included in the AR.
Filing of Annual Tax Return (Form C/C-S)
The Singapore company must file its annual tax return with IRAS with the deadlines either 30 November for paper filling or 15 December for e-filling.
Singapore adopts the preceding year basis for taxation. The profits for the financial year ending in the preceding year will form the basis for filing the tax return in the current year.
A dormant company that does not carry any business and has no income for the financial year can apply for a waiver of income tax return filing. If IRAS grants the waiver, the company does not have to report the estimated income or file the tax return for the financial year.
Who is Responsible for Annual Filing?
It is the duty of the Company Secretary to ensure that the company complies with the filing of various statutory reports.
The directors of the company are responsible to ensure that the financial statements of the company are prepared accurately and comply with accounting standards.
To get more details, contact ACE Accountant Global for a free consultancy.