An Entrepreneur’s Guide to Annual Filings for Singapore Companies
To stay compliant with Singapore regulation, companies must file annually as necessary by government authorities, including the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS). ACRA acts as the nationwide controller of business establishments in the country, whereas IRAS collects taxes and specifies the requirements for annual filing.
This article guides you through the overview of annual filings requirements in Singapore.
Who Are Required To Submit Financial Statements With ACRA?
All companies registered in Singapore are required to file financial statements with ACRA unless they are exempted. Some entities will file a complete set of financial statements in XBRL format. Others will file only key financial details in the same format with a complete set of a signed copy of the financial statement tabled at the annual general meeting or circulated to members in the PDF format.
Legal entities not required to file a financial statement with ACRA include a partnership, limited partnership or limited liability partnership, and sole proprietorship.
Who Will Be Responsible For Annual Filing?
The one responsible for ensuring that the company stays compliant with the filing of statutory reports is the corporate secretary. The company’s directors are also responsible for ensuring the accuracy and compliance of financial statements.
Financial Statements Preparation
Based on their companies’ financial operations during the accounting year, business owners need to prepare their annual financial statements according to the Financial Reporting Standards of Singapore. The financial statements should contain the following:
● Statement of comprehensive income, such as profits and loss account
● Statement of financial position, such as a balance sheet
● Statement of cash flow
● Statement of changes in equity
If the company handles large accounting transaction numbers every month, it should conduct monthly bookkeeping to keep its ledgers in order. But if the company’s financial transactions are small every month, business owners can perform the bookkeeping on a quarterly or yearly basis.
Filing of ECI
Companies in the country are mandated to declare the amount of revenue and ECI (Estimated Chargeable Income) through the filing of the ECI form with IRAS within three months of the company’s financial year-end. Even though the company may have an estimate of zero chargeable income, it still needs to file an ECI.
Financial Statement’s Audit
Once the financial statements are prepared appropriately, the company needs to have the statements audited if they meet any two of the criteria below:
● The total annual profit is more than SGD 10 million
● The total assets are more than SGD 10 million; or
● Has over fifty employees
If the company is a part of a group, it will be evaluated on a consolidated group basis.
Audit Exemption For Small Companies
Small private companies in Singapore are not required to file audited financial statements with ACRA as long as they meet two of the following conditions:
● The total annual revenue from the previous fiscal year are less than SGD 10 million
● The total assets from the previous fiscal year are lower than SGD 10 million
● The total number of employees in the previous fiscal year is fewer than fifty
Annual General Meeting Requirement
Every registered company in Singapore are required to hold an Annual General Meeting or AGM once each calendar year. The following are some general rules of Annual General Meetings:
● The first AGM must be held within eighteen months of the company’s incorporation
● No more than fifteen months must pass between succeeding AGMs
● Any account presented during the AGM should be created up to a date not exceeding six months before the AGM
Annual Return Filing With ACRA
Companies in Singapore are required to lodge an Annual Return or AR with ACRA within one month of its AGM. The AR must contain particulars of the company’s officers, auditors (if applicable), and registered address.
Annual Tax Return Filing With IRAS
Singapore companies also need to file their annual tax return with IRAS by 30th November. For taxation, Singapore adopts the preceding year basis. The revenues for the financial year ending in the previous year will become the basis for the current year’s tax return filing.
Non-Compliance Of Annual Filings
Failure to abide by the statutory compliance requirements is considered an offense and may lead to fines or prosecution.
Seeking Help From Reputable Accounting Services In Singapore
Hiring accounting firms in Singapore can help ensure the company satisfies all compliance requirements and is protected against any legal issues. When selecting accounting services, consider the services providers’ reputability, credibility, industry expertise, years of experience, services offered, and pricing model.
