Q1. What are the filing requirements for a local company?
For ACRA Compliance
All locally incorporated companies are required to hold their Annual General Meeting (AGM) and file their annual returns to ACRA (Accounting and Corporate Regulatory Authority) under S175, S197 and S201 of the Companies Act.
For IRAS Compliance
IRAS (Inland Revenue Authority of Singapore) requires every companies to submit ECI (Estimated Chargeable Income) and Income Tax Return for each financial year. Companies are required to submit audited or unaudited financial statement, tax computation schedule and Form C to IRAS.
Q2. When to hold an AGM and file annual return?
For AGM, newly incorporated company is required to hold the first AGM within 18 months from date of incorporation. Subsequent AGMs must be held once in every calendar year within 15 months from last AGM date.
For annual return, local companies are required to prepare audited or unaudited financial statement and file the report to ACRA within 6 months after financial year end.
Q3. How should I start with my company’s annual return?
Company’s book-keeper or Accountant is required to prepare the financial reports. For companies without a full time or part time book-keeper or Accountant, they may engage book-keeping firm to prepare the accounts.
For companies exempt from audit requirement, company is obliged to prepare the unaudited financial statement according to Financial Reporting Standards (FRS) based on the final book-keeping reports.
For companies with
– corporate shareholders
– more than 20 individual shareholders
– annual turnover with or more than S$5 million
They must appoint an auditor to produce the audited financial statement in accordance to FRS.
For ACRA Submission, the company director needs to inform the corporate secretary of the company to prepare the AGM documents. The approved audited or unaudited financial statement to be filed together with the AGM papers.
For IRAS Income Tax return, director may appoint a company’s tax agent to compute income tax and submit Form C to IRAS.
Q4. What if a company fails to hold its AGM and file annual return?
Late filing penalties and/or composition fines will be imposed under Companies Act and Income Tax Act for the followings:
– Late lodgement of AGM
– Late lodgement of Financial Statement to ACRA
– Late submission of Form C to IRAS
In addition, a summon may be issued against a company director as stipulated under the law.
Q5. When and how the company need to be a GST (Goods and Services Tax) registered trader?
Company must register for GST compulsorily when
– their annual taxable turnover is more than S$1 million, or
– company expects their turnover to be more than S$1 million during the next 12 months.
Where it is not a requirement under the law, company may choose to register for GST voluntarily.
For more information, please visit IRAS website (www.iras.gov.sg).