Annual Compliance for a Singapore Private Limited Company
After setting up a company in Singapore, the company director is responsible to comply with the annual compliance filing with the statutory boards. There are two statutory boards to comply with, and they are ACRA (Accounting and Corporate Regulatory Authority) and IRAS (Inland Revenue Authority of Singapore).
ACRA requirements
Under the Singapore Companies Act, a private limited company has to hold an Annual General Meeting (AGM) within 6 months after the financial year-end. Generally, the director has to present the company’s financial statements to the shareholders during the AGM. This allows shareholders to grasp the financial health of the company and any ongoing concern matters.
The shareholders have the power to appoint or re-elect the director of the company. Whereas, the Director is given the authority to declare the dividend payout reasonably to the shareholder base on the company’s financial performance.
After the AGM is held, the director or the company secretary has to submit an annual return to ACRA within 1 month from the AGM date. Basically, the Annual Return is a declaration to ACRA regards to the company’s status such as its’ solvency.
However, a private limited company may dispense of holding an annual general meeting when all members agreed by passing a written resolution. Any concerns or matters that require the approval of the members can be obtained through the written resolutions which are being circulated through emails or hardcopies (as agreed by the company and the members).
A company that failed to file the annual return by the due date will have to pay a composition sum of $300 for each section. However, the company can apply for an extension to submit the annual return or to hold an annual general meeting.
IRAS requirements
Besides the submission of annual return to ACRA, the company is also required to submit an estimated chargeable income (ECI) within 3 months to IRAS after the financial year-end. IRAS allows the company to pay the upfront tax in installments (up to 10 months) when ECI is submitted within 3 months.
Lastly, the final tax form namely Form C or Form C-S has to be submitted to IRAS by 30 November or 15 December (e-file) each year. As announced in budget 2016, the e-filing of the tax submission will be made compulsory in phases. By Year of Assessment (YA) 2020, all companies have to e-file the tax via the IRAS tax portal. And by YA 2021, a single filing date will be fixed on 30 November each year.
IRAS may impose a penalty when the company fails to submit the tax on time. The tax authority may also issue a court order to the company director for non-compliant.
Annual Compliance Package
Being a director of the company carries huge responsibilities. And having to comply with the annual statutory filing is one of the difficult tasks. Fortunately, the compliance obligations can be outsourced to a corporate service provider (CSP) like us.
Monitoring the compliance filing due dates is not an easy task. Therefore, we have come up with the Annual Compliance Package (ACP). It fulfills the company’s annual compliance obligations for ACRA – Annual Return Filing and IRAS – Corporate Tax submission.
The Annual Compliance Package comprises the following:
- Appointment of named company secretary
- Preparation of Annual General Meeting documents
- Annual Return Filing to ACRA (inclusive of ACRA fee $60)
- Compilation of Unaudited Financial Statements*
- Corporate Tax Computation
- Corporate Tax Filing – ECI & Form C-S*
- Maintaining the company registers
- Updating of the Register of Registrable Controllers (RORC) with ACRA
* Revenue less than $5 million
The Annual Compliance Package is suitable for Startups and SMEs with an annual turnover of less than S$5 million.
Look no further, as we are ready to take on the tasks and ease your compliance requirements. Drop us an inquiry to find out more.
