What is required by my company annually?
In Singapore, private limited Companies are expected to file its annual return with ACRA and Company tax filing with IRAS. To do that, preparation of financial statement is a must. Based on the Company’s financial activities during the accounting year, a financial statement must be prepared in accordance with the Financial Reporting Standards of Singapore. To ensure the financial information are accurate, monthly bookkeeping is highly recommended. Engaging with a third-party account system provider is one of the prospects you may consider. This is to ensure all invoicing, quotations and bookkeeping are kept in order.
Most small medium entities are exempted from auditing their financial statement. However, if the Company meets any 2 out of 3 from the conditions below, they are required to have its financial statement to be audited:
- Total annual revenue exceeds SGD$ 10 million
- Total assets exceed SGD$ 10 million
- Has more than 50 employees
Once the financial statement (both audited and unaudited) is prepared, the Company will then need to hold an annual general meeting (AGM). This is so the board is able to present the accounts prepared and pass the resolution approving said account before the appointed Company secretary can proceed with the annual return filing.
It is a mandatory for all Singapore registered Companies to lodge its annual return in ACRA. Particulars of the Company’s officers, registered address and auditors (if applicable) must be updated in the annual return.
Finally, Company annual tax filing with IRAS. Compare to other countries worldwide where the annual tax return must be filed 30 days after the financial report is signed, it is slightly different in Singapore where its annual tax return is expected to be filed with IRAS by 30th November ever year. Singapore adopts the preceding year basis for taxation.