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Compliance for Singapore Companies

compliance-for-singapore-companies

Singapore private limited companies have to be prompt with their statutory compliance. It is as important for them as it is to convince customers to buy their services, generate revenue, plan for the future, and grow. The trend, now, is to outsource non-core tasks to providers of Singapore corporate services. We, since 2010, are offering customized and cost-effective compliance-related solutions to small businesses in Singapore.

Singapore Company Secretary

Singapore companies must appoint at least a qualified company secretary to handle administrative & legal nuances for them. We, as a trusted company secretary services provider, have all the experience necessary to do the job. As a secretary, we communicate due dates, info about AGM & EGM & other compliance related data to the directors & shareholders of the company.

Singapore Resident Director

There is no limit to the number of directors, a Singapore company can hire. However, there should be at least one local resident director, who is Singapore Citizen, Singapore Permanent Resident, or a person who has been issued an Entrepreneur Pass. The employment pass holders, in strict compliance with the Employment Act, can also be the resident directors of the company that employs them. Anyone over 18 years of age can be the director of a Singapore company. The person to be appointed should not have a history of felony, conviction, or undischarged bankruptcy.

Registered Address in Singapore

Every company in Singapore must have a valid physical local address to facilitate official communication. It should remain open and accessible to the public during the office hours. The address cannot be a P.O. Box. Under the Home Office Scheme, the business owners can use an HDB apartment address. However, using a registered or virtual address from main business district gives the business a professional image.

Setting a Financial Year End

Every Singapore company should fix its financial year end (FYE) for administrative purposes. If a Singapore company is a subsidiary then its FYE must correspond to the FYE of its parent holding company. The local private limited companies can decide their FYE as per their business needs.

Appointing an Auditor

Excluding the exempt private companies (EPCs), all other companies must appoint at least an auditor within 3 months of their incorporation. In the past exempt private companies used to enjoy audit exemption.

However, Singapore authorities have introduced the concept of Small Company. Singapore private limited companies tagged as such enjoy audit exemption. They must meet at least 2 of 3 following criteria for immediate past two consecutive financial years:

  • total annual revenue ≤ $10m;
  • total assets ≤ $10m;
  • number of employees ≤ 50

GST Registration

GST (Goods and Service Tax) is also known as VAT (Value Added Tax) in many other countries. It is a tax imposed on the consumption of goods and services in Singapore. Currently, it stands at a rate of 7%.

Only GST registered entities can collect and submit the tax to the IRAS. We assist businesses in determining whether they need to compulsorily or voluntarily register for GST.

A company should register for GST, if:

  • Its turnover for the past 12 months was more than S$1 million, which is also known as the retrospective basis or;
  • Its turnover for the next year is expected to exceed S$1 million, also known as the prospective basis

Procuring a Business Specific License

The requirement of a business license mainly depends on the type of business you intend to carry out. You may or may not require a license. If your company needs a license, then you need to apply for it and obtain the authority’s approval before you start the business. However, in Singapore only a few types of businesses require a license to operate.

Procuring Business Licenses or Permits

The requirement of a business license or permit mainly depends on the type of business you intend to carry out in Singapore. We as your registered filing agent can apply for them and obtain the authority’s approval before you could start the business activities.

Financial Record Keeping

It is mandatory for Singaporean companies to regularly update & maintain its accounting and financial records, including the profit and loss account or the balance sheet. These records are important as they give info about the financial position of the company.

The companies have to maintain financial records for at least 5 years. The directors have the rights to reopen and inspect the records at any time if the need arises.

Annual Filing Requirements

A company incorporated in Singapore is required to file its annual return with the Singapore’s Company Registrar, ACRA. Besides, it also should file the annual tax return with the Singapore’s IRAS.

Our team of experts offers monthly, quarterly, and annual accounting and bookkeeping services to small businesses in Singapore. We prepare all kinds of financial statements promptly and accurately to ensure your statutory compliance.

Director’s Disclosure

The directors must disclose to the company certain information that he thinks will avoid conflicts of interest or the perception of conflicts of interest. He can disclose any material personal interest that he may have, which relates to the affairs of the company.

Notification of Changes to the Authorities

Any change made to a Singapore company has to be notified to the Registrar of Companies. ACRA (Accounting and Corporate Regulatory Authority) acts in this capacity.

The company secretary should submit info regarding the changes in officers of the company and the company itself to ACRA. All the information available with the Registrar must be current. Failing to do so can lead to trouble.

Company’s UEN Disclosure

Every company in Singapore must have the registration number and the company’s registered name displayed on all business letters, statements of account, invoices, official notices, and publications.

Starting 1 January 2009, all the Singapore registered companies are given a Unique Entity Number (UEN). This number serves as the company’s identification number. This is a single number which is unique for every company.

Using this number, a company can interact with the government, file corporate tax returns, apply for permits, and submit their employees CPF contribution. The UEN number replaces all the different identification numbers issued by various government bodies. For companies that are incorporated before this period, their ACRA registration number will be their UEN.

SBS Consulting is a registered filing agent active in Singapore. In addition to accounting & bookkeeping services, we also offer services for Singapore company incorporation, XBRL filing, Payroll, etc. Contact us on +65-6536 0036 or email us at info@sbsgroup.com.sg more info.

Please feel free to contact us on +65 6536 0036 or drop in an email at info@sbsgroup.com.sg

 

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