What is Next After Incorporation 12 Things To Do
If you have an innovative business idea, then incorporating a company in Singapore is the right way to go. It is a perfect vehicle for starting your business activities and putting your plans into operation.
However, right after forming your company, you need to take care of a set of post-incorporation tasks. They are listed as follows:
1. Choose Financial Year End (FYE) for Your Singapore Company
You can choose any date as your financial year-end (for example, 31 March, 30 June, 30 September or 31 December). It is a date by which you must file the company’s annual reports with the ACRA and IRAS to let them know its annual performance.
You have to careful in choosing the FYE as it can affect your company’s:
- Filing of Estimated Chargeable Income (ECI)
- Filing of Annual Reports
- Conveying of Annual General Meeting
2. Appoint At Least One Auditor
Unless your company is exempted, you must hire at least one auditor within 3 months of incorporation date of your company.
You exempted from obligation if its:
- Total annual revenue is S$10 million or less
- Total assets are S$10 million or less
- Employee number is 50 or less
3. Appoint a Corporate Secretary
You have to hire at least one company secretary within 6 months of your company’s incorporation date. The appointee takes care of administrative duties for your company. They also take care of its compliance and communicate with directors and shareholders about annual filing and AGM.
4. Issuing Share Certificates of Company
Share certificates denote a shareholder’s ownership in a company. Company secretary keeps track of shares issued to shareholders. You can issue it with or without a common seal.
When issuing it without the common seal, you will need to get the document signed by:
- 2 directors; or
- 1 director and company secretary; or
- 1 director in front of a witness
5. Company’s Statutory Books
Company secretary creates and maintains statutory books at the company’s registered office in Singapore so these can be shown to the IRAS or ACRA officials on demand. They hold the company’s legal records like:
- Latest info on company directors, auditors and secretaries including date of appointments and resignations.
- Shareholders’ information, shares they own and on share transfers
- Fixed or floating charges & debenture used to secure loans for the company
- Minutes of meeting and resolutions by AGM
6. Accounting System for Your Company
A fully functional accounting system makes it easy to track the company’s expense, income and financial status. It helps in keeping an eye on the company’s profitability and tax liabilities. Appoint an experienced accountant or outsource the task to a provider of accounting services in Singapore. They will assist you in regular updating of your books.
7. Get Business Licenses and Permits
Depending on your business activities, you may have to apply and acquire licenses and permits from proper authorities. The processes for these are easy to follow. Do not start your business activities before obtaining these documents.
8. Open a Corporate Bank Account for your Company
There are several local and international banks operating in Singapore. Choose one that fits your business needs. You need a bank account to streamline your company’s cash flow.
You also need bank statements for its annual financial reports. The bank may ask for the physical presence of the signatories to the account and the company’s directors and company secretary.
9. Filing Estimated Chargeable Income (ECI) with IRAS
At the end of FYE, you will need to file an Estimated Chargeable Income (ECI) for your company to IRAS. Include the company’s revenue in ECI form. For accurate filing of ECI get an accountant to do it.
10. Convening Annual General Meeting (AGM)
You should hold first AGM within 18 months from its date of incorporation. Shareholders come together to discuss company prospects in AGM. You need to table the company’s financial statements like:
- Profit and Loss statement
- Balance Sheet statement
- Cash flow statement
- Changes in equity statement
- Notes to financial statement
11. Filing Annual Returns (AR) with ACRA
Annual Returns contain the company’s information like:
- Name and type
- Registered address
- Company officers
- Registered charges and any changes
- Changes in the structure of shares and capital
- Financial statements in XBRL format (full version or highlights)
12. File C-S/C, the Annual Tax Returns with IRAS
Use Form C-S/C to report the company’s taxes to IRAS. Your deadline is November 30th (Paper filing) or December 15th (online filing) after your FYE.
You should be ready with:
- Name and type
- Company’s financial statements
- A declaration statement
- Tax calculations
After forming your company, you need to take care of a number of administrative tasks. So appoint an in-house secretary or outsource the task to a provider of company secretary services in Singapore.