Singapore’s Business-Friendly Environment: Understanding ACRA Filing Requirements
Singapore’s business-friendly environment has attracted entrepreneurs globally for over five decades. A key factor in this success is the Accounting and Corporate Regulatory Authority (ACRA), which oversees annual filing requirements for companies.
Why Does ACRA Maintain Strict Requirements?
ACRA aims to build a reliable business environment in Singapore. Its annual requirements serve several purposes:
- Clarity and Responsibility: Regular filings offer stakeholders current information on a company’s financial health and management.
- Rule Adherence: Yearly submissions allow ACRA to check compliance with the Companies Act and other regulations.
- Stakeholder Safeguards: Required disclosures give accurate, timely information to investors and other interested parties.
- Economic Soundness: Rigorous standards uphold Singapore’s standing, drawing foreign investment.
- Misconduct Prevention: Consistent filings and audits help spot and stop fraudulent activities.
- Global Standards: ACRA’s requirements match worldwide best practices in corporate governance and financial reporting.
ACRA Filing Requirements
Companies in Singapore must conduct an AGM each calendar year. The AGM serves as a platform for shareholders to review the company’s performance, make key decisions, and engage with company directors.
Requirements for Reports/Accounts
Companies must prepare and submit financial statements, directors’ reports, and audited accounts. Some Small Exempt Private Companies (EPCs) with annual revenue under S$10 million and dormant EPCs may not need to audit their accounts, depending on certain conditions.
Filing of Annual Return
The annual return is a crucial document providing ACRA with up-to-date company information. All locally incorporated companies, whether active or dormant, must file this return annually.
Penalties for Non-Compliance With ACRA
ACRA imposes late lodgement fees for companies that file their Annual Returns after the due date. Composition sums may be offered to companies and directors in lieu of prosecution. If composition is not offered or accepted, ACRA may proceed with court prosecution. Directors may be summoned to court, and maximum fine per charge is S$5,000 (if convicted).
Conclusion
Meeting ACRA’s annual filing requirements helps maintain your company’s standing in Singapore’s business environment. These obligations, while complex, support Singapore’s reputation for corporate transparency and regulatory compliance.
FAQs
- Companies in Singapore must hold an Annual General Meeting (AGM), prepare and submit financial statements, file directors’ reports and audited accounts, submit the Annual Return, and file financial statements in XBRL format if applicable.
- Companies in Singapore should submit their Annual Return within one month after their Annual General Meeting (AGM) or after passing written resolutions in place of the AGM.
- Not all companies need to file audited accounts. Some Small Exempt Private Companies (EPCs) with annual revenue under S$10 million and dormant EPCs may not need to audit their accounts, depending on certain conditions.
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