A Guide to Maintaining a Singapore Company: Annual Returns, Filing Requirements, and Compliance
Singapore is one of the most popular destinations for businesses, especially for startups and entrepreneurs. With its business-friendly environment, low taxes, and highly skilled workforce, it’s no wonder that many companies choose to set up shop in the Lion City. However, maintaining a Singapore company requires a great deal of effort and attention to detail, especially when it comes to annual returns, filing requirements, and compliance.
In this article, we’ll provide you with a comprehensive guide on how to maintain a Singapore company, including the importance of annual returns, filing requirements, and compliance. We’ll also cover common mistakes to avoid and provide you with a checklist to ensure your company is compliant with Singaporean regulations.
Annual Returns and Filing Requirements
Every Singapore company is required to file annual returns with the Accounting and Corporate Regulatory Authority (ACRA) within 30 days after the anniversary of its incorporation date. The annual return must be filed electronically, and it includes information such as the company’s name, address, and directorship.
Additionally, companies must also file annual financial statements, which include the balance sheet, income statement, and cash flow statement. The financial statements must be audited by a registered public accountant if the company is a public listed company or if its annual turnover exceeds SGD 10 million.
Compliance and Penalties
Failing to file annual returns and financial statements on time can result in penalties and fines. The penalty for late filing of annual returns is SGD 300, and the penalty for late filing of financial statements is SGD 2,000.
Furthermore, if a company fails to maintain accurate and up-to-date records, it may be subject to penalties and fines. The penalties for non-compliance can range from SGD 1,000 to SGD 10,000, depending on the severity of the breach.
Common Mistakes to Avoid
When it comes to maintaining a Singapore company, there are several common mistakes to avoid. Here are a few:
- Failure to file annual returns and financial statements on time
- Failure to maintain accurate and up-to-date records
- Failure to comply with tax laws and regulations
- Failure to maintain adequate accounting records
Checklist for Compliance
To ensure your company is compliant with Singaporean regulations, make sure to check the following:
- Annual returns and financial statements are filed on time
- Records are accurate and up-to-date
- Tax laws and regulations are complied with
- Accounting records are maintained adequately
- Annual general meetings (AGMs) are held on time
- Board of directors meets regularly
- Minutes of meetings are kept accurately
Conclusion
Maintaining a Singapore company requires a great deal of effort and attention to detail. Failure to comply with annual returns, filing requirements, and compliance can result in penalties and fines. By following this guide, you can ensure your company is compliant with Singaporean regulations and avoid common mistakes. Remember to check the checklist for compliance regularly to ensure your company is in good standing.
Frequently Asked Questions
Q: What is the penalty for late filing of annual returns?
A: The penalty for late filing of annual returns is SGD 300.
Q: What is the penalty for late filing of financial statements?
A: The penalty for late filing of financial statements is SGD 2,000.
Q: What is the minimum number of directors required for a Singapore company?
A: The minimum number of directors required for a Singapore company is one.
Q: What is the minimum share capital required for a Singapore company?
A: The minimum share capital required for a Singapore company is SGD 1.
Q: Can a Singapore company be managed by a single person?
A: Yes, a Singapore company can be managed by a single person, known as the sole director.
Q: What is the deadline for filing annual returns?
A: The deadline for filing annual returns is 30 days after the anniversary of the company’s incorporation date.
Q: Can a Singapore company be dissolved?
A: Yes, a Singapore company can be dissolved, but this requires a winding-up order and the company’s assets must be distributed according to the Companies Act.
