Annual Filing Requirements for Private Companies in Singapore
Every private limited company in Singapore is required to file annual returns, and the detailed requirements for this process will be outlined in this article. Annual filing is mandatory for both active and non-active Singaporean companies.
Preparing Financial Statements in Singapore
Based on the financial activities of your Singaporean company for the accounting year, you must prepare annual financial statements in accordance with the requirements and standards of Singapore’s Financial Reporting Standards (FRS). If your company engages in a moderate to high number of transactions each month, we recommend maintaining monthly accounting records to keep your books in order. If the monthly transaction volume is relatively low, you may choose to manage your accounts on a quarterly or even annual basis. The financial statements in Singapore should consist of four reports:
- Statement of Comprehensive Income (Income/Expense) – also known as the Profit and Loss Account,
- Statement of Financial Position – also known as the Balance Sheet,
- Cash Flow Statement,
- Statement of Changes in Equity.
Filing Estimated Chargeable Income (ECI) in Singapore
Singaporean companies are required to declare the amount of profit and the calculation of their estimated chargeable income (ECI) by submitting a special form – ECI form – to the Singaporean tax authority, IRAS, within three months from the end of the company’s financial year. Even if a Singaporean company assesses its chargeable income as zero, representatives of the company must still submit a nil ECI report.
Audit of Financial Statements in Singapore
Once the financial statements of your Singaporean company are ready, your company may be subject to an audit if it meets the following two criteria:
- One of the shareholders of your Singaporean company is a legal entity.
- The annual revenue of your Singaporean company exceeds five million Singaporean dollars.
Annual General Meeting (AGM)
Every Singaporean company must hold an AGM once a calendar year, and there are specific rules regarding the conduct of annual meetings for Singaporean companies:
- The first AGM of the company must be held within 18 months from the date of incorporation.
- There should not be more than 15 months between two consecutive AGMs of the company.
- The reports presented at the AGM must be up-to-date within six months before the meeting.
Private companies can opt-out of AGMs if a unanimous resolution to dispense with such meetings is passed by all voting board members during the first AGM.
Filing Annual Returns with ACRA
Every Singaporean company must lodge an Annual Return (AR) with the Accounting and Corporate Regulatory Authority (ACRA) within one month after the AGM. The AR should include details of company officers, registered address, and auditors (if applicable). The specific accounting requirements for the company are listed here: [link to the official ACRA website].
Filing Annual Tax Return with IRAS
Every Singaporean company must file its annual financial report with IRAS by 30th November each year. Singapore follows a preceding-year basis of taxation. The incomes at the end of the previous financial year serve as the basis for filing the tax return in the current year.
Please note that directors of Singaporean companies are responsible for the annual filing of Singaporean companies. Failure to comply with the requirements may result in penalties and legal consequences. We trust you greatly and often entrust our directorship to you in many cases.
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