According to the Singapore Companies Act, all companies registered in Singapore are required to file an annual return with the Accounting and Corporate Regulatory Authority (ACRA) within the stipulated deadlines. This annual filing is a mandatory financial report that each company must complete for every fiscal year. If you fail to submit your annual return on time and do not apply for an extension or if the extension is denied, fines will be imposed—up to SGD 300 for each overdue item, with a maximum penalty of SGD 900. In severe cases, delayed or missed tax filings can lead to court action.
Financial Statements
Every Singapore company must prepare and submit financial statements as part of the annual filing. This includes a detailed report of the company’s financial health, ensuring transparency and compliance with Singapore’s financial regulations. Delays or errors in this submission can result in fines and legal action.
Estimated Chargeable Income (ECI)
Estimated Chargeable Income (ECI) is a required declaration for all companies registered in Singapore. It represents an estimate of a company’s taxable income for the financial year. Companies must submit their ECI within three months of the end of their financial year, even if the estimated income is zero. Non-compliance can result in penalties and legal repercussions.
Annual General Meeting (AGM)
Every Singapore company is required to hold an Annual General Meeting (AGM) once a year. For new companies, the first AGM can be held within 18 months of incorporation. After the first AGM, the subsequent AGMs must be held within 15 months of the previous AGM. During the AGM, key resolutions are passed and signed by all directors, and the company’s financial statements are presented to shareholders.
Filing of Annual Return (AR) with ACRA
Following the AGM, the company must file its Annual Return (AR) with ACRA within one month. The AR must include details of the company’s key officers, registered address, and auditors (if applicable). Timely filing of the AR is crucial to avoid penalties and ensure ongoing compliance.
Audit of Financial Statements
If your company meets at least two of the following three criteria, an audit of the financial statements may be required:
- Annual revenue exceeds SGD 10 million.
- Total assets exceed SGD 10 million.
- The company has more than 50 employees.
Corporate Tax Filing
All Singapore private limited companies are required to submit their corporate tax returns to the Inland Revenue Authority of Singapore (IRAS) for each financial year. Corporate tax is calculated based on the company’s taxable profits, not its gross revenue. The current corporate tax rate for Singapore private limited companies is 17%. Newly registered companies may enjoy a partial tax exemption on the first SGD 100,000 of profits for the first three years.
We can provide a full set of Singapore company annual review services. For details, please consult our professional consultants.