Failing to regularly meet ACRA’s and IRAS’ annual compliance requirements in a timely manner can have serious consequences. Our comprehensive guide answers the pertinent issues and key considerations to be better prepared.
Singapore (PRWEB) February 27, 2015
Singapore is strategically equipped to be the launch pad for start-ups in the region. Every Singapore-incorporated company is governed by the Accounting and Corporate Regulatory Authority (ACRA), which stipulates the requirements for private limited companies.
From incorporating a new business to converting existing Sole Proprietorships to Private Limited companies, corporate secretarial services are necessary to provide a hassle-free process. This ensures that statutory compliance to the Singapore Companies Act is met.
Corporate compliance in Singapore is a complex legal requirement for all Singapore registered companies. This guide articulates the processes and concepts involved:
When incorporating a company in Singapore, it is mandatory to appoint a company secretary within six months of incorporation to manage the legal issues of the company, in accordance with Section 171 of the Singapore Companies Act, Chapter 50.
Every company registered in Singapore must have its registered office in Singapore. This is the address where official documents and government correspondence are served. A registered office address is a prerequisite to incorporating a company.
A company can appoint as many foreign or local directors as it requires. However, all Singapore registered companies must have at least one locally resident director at all times.
Financial Year End (FYE)
The Guide gives a snapshot of the financial activities at the end of the year (FYE). If a company is in form of a subsidiary, it is advisable (though not compulsory) to keep the same financial year end for both the holding company and its Singapore subsidiary.
Books of Account
Every company must always keep accounting as well as other records essential to explain their transactions as well as their financial position, and to allow for a profit and loss account before preparing a balance sheet. These accounting records need to be kept for five years after completion of the essential operations or transactions. Each director has a right to inspect these accounting records at any time.
Annual Tax Return and Annual General Meeting
Every company in Singapore must file Annual Returns with the Company Registrar and the Annual Tax Return with the Revenue Authority. In addition, all companies must hold their Annual General Meeting (AGM) once every calendar year. The AGM must not be more than 15 months apart from the last held AGM.
Failure or non-compliance with the requirements for holding of Annual General Meeting and filing of Annual Tax Return will incur penalty or court prosecution. The penalties imposed depend on the length of default and the number of sections (175, 197 and 201) of the Companies Act that has been breached. Complying with all of the 3 requirements under these sections of the Act will have a green tick reflected in ACRA’s online Directory and will be eligible for a Certificate of Compliance. For those not in compliance with these requirements will receive a red cross and will not be eligible for the certificate.
“Failing to regularly meet ACRA’s and IRAS’ annual compliance requirements in a timely manner can have serious consequences. Our comprehensive guide answers the pertinent issues and key considerations to be better prepared. More importantly, our guide emphasizes the role of a competent and knowledgeable Company Secretary to stay compliant with Singapore’s regulatory environment,” said Christine Lim, manager at Singapore-incorporation.net.
To read the complete guide, click here.
Singapore Incorporation Online provides corporate services including the registration of companies and businesses in Singapore, compliance and tax advisory services and immigration services including application for work visas and other business related visas. Singapore Incorporation Online is a full-service corporate service provider company providing a full range of corporate, compliance, tax and immigration support services.
Phone: +65 6305 2414
Fax: +65 6305 2415