Catering to compliances at regular intervals and meeting deadlines on time is mandatory for every Singaporean Company. This is one of the major aspects to look into after incorporating a company in Singapore. Compliances were formulated to maintain a transparent business environment for both owners and investors alike; therefore, it is important to strictly comply. The two main bodies a Singaporean Company will be involved with while trying to adhere to the deadlines involve the Inland Revenue Authority of Singapore (IRAS) and Accounting and Corporate Regulatory Authority (ACRA).
The annual general meeting must be held once every calendar year or within an interval of no more than 15 months from the last AGM or once in a year. Companies that have been newly incorporated are required to hold an Annual General Meeting after 18 months from the date of incorporation. In the case of a company surpassing a deadline for holding the Annual General Meeting, an application can be filed with ACRA under Section 105 and Section 201 of the Company’s’ Act.
This is mandatory for companies that have shareholders who are a corporate entity or if the annual turnover is SGD$ million. An auditor has to be appointed within 3 months from the date of incorporation. A company is exempt from catering to this compliance if it has had no accounting transaction during the financial year.
Private and Public companies are required to file their annual returns in the extensible business reporting language (XBRL) whereas small companies can submit it in a partial XBRL format. Annual Returns have to be filed with ACRA within 1 month of holding the Annual General Meeting.
The statement of financial accounts of a company needs to be prepared after the financial year end. However, it should be noted that there are certain companies that do not have sufficient activity at this point to be eligible for a complete statutory audit. Such companies are exempt from fulfilling this criteria if there are less than 20 individuals shareholders, the annual turnover is less than S$5 million, or if the shareholders are not corporate bodies. The deadline for preparing the financial statements of a company is based on when a company chooses to hold its annual general meetings.
After the deduction of the tax allowable expenses, the estimate of a company’s taxable income is known as ECI which is administered by the Inland Revenue Authority of Singapore (IRAS). In the case of ECI being nil or the annual revenue being less than S$1 million, a company is exempted from this criteria. Estimate chargeable income is required to be filed within three months before the financial year end.
They are of two types, i.e. Form C and Form C-S. A company has to declare its actual income by 30th November, in the year subsequent to the Year of Assessment to file its Income Tax Return.
Need assistance with your filing requirements? Our team comprises of experts who simplify the procedure of catering to statutory compliances for Singaporean companies. Visit our website www.skpatodia.in for more queries.