Incorporate Company in Singapore and Check, Whether it Qualifies as a SMALL COMPANY, Advises SBS Consulting
“The concept of ‘SMALL COMPANY’ is going to bring audit exemption to more companies than was previously possible,” quoted www.SBSGroup.com.sg.
“Singapore lawmakers take pride in keeping pace with the changes in the international business and commerce. They never lose sight of their goal of maintaining Singapore as one of most pro-entrepreneur-friendly investment destination,” proclaimed www.SBSGroup.com.sg.
Singapore authorities have updated policies regarding the audit exemption to the Singapore registered companies. With this step, they have made it more attractive for the local, as well as the foreign entrepreneurs, to incorporate the new company in Singapore.
The Singapore lawmakers have broadened the niche of companies that can benefit from the audit exemption. Now, even private companies other than Exempt Private Companies (EPC) can benefit from it. The new guidelines came into force starting from the onset of July 2015. They are applicable to the financial years starting on or after 1st July 2015.
Earlier, EPCs having no corporate shareholding and an annual turnover of less than S$5 million were the candidates for audit exemption. Now, Singapore businesses fitting in with the description of the small company will qualify for it.
According to the definition, a Singaporean business entity qualifies as a SMALL COMPANY if,
It is a private limited company that fulfils 2 of the following 3 conditions
- Annual turnover less than S$10 million
- Total assets less than S$10 million
- Number of employees 50 or less
The existing Singapore private companies that are able to confirm with the definition of the small company are also going to benefit from the audit exemption. It is going to reduce their cost of compliance and the stresses associated with it.
Qualifying as a small company once is not enough. It is not a permanent status and failing to meet the imposed quantitative criteria for two consecutive financial years will negate the audit exemption that it offers.
The private companies that are not immediately qualifying as such need to shift their gears during the transition period stretched over the two financial years (2015 and 2016). After the end of this period, the companies will need to meet the quantitative criteria for two consecutive financial years to qualify as a small company.
Incorporation of Company in Singapore
Accounting and Corporate Regulatory Authority (ACRA) of Singapore also act as the Company Registrar. This government agency strictly regulates the existing business entities operating in Singapore. The entrepreneurs need to confirm with its mandates while undertaking the incorporation of company in Singapore.
Incorporating a private company in Singapore is straightforward and involves completion of only two procedures.
- Approval of the name of the proposed company by ACRA
- Registration of the proposed company
Normally, it takes only 2 – 3 days to incorporate a Singapore company. However, Singapore authorities regulate certain domains in Singapore, like, education and banking. Incorporating a company related to any of these domains takes time. The concerned ministries review the applications and it delays the process.
A Singapore startup company incorporated on or after 1st July 2015 does not automatically qualify as a SMALL COMPANY. It also has to meet the imposed quantitative criteria to get audit exemption.
To know more details about the Singapore Company Incorporation visit https://www.sbsgroup.com.sg/infographic/want-to-incorporate-acompany-in-singapore/
About SBS Consulting
SBSGroup.com.sg is a prime incorporation portal. It provides trusted Singapore company incorporation and corporate service solutions to the Small and Medium Enterprises (SMEs), National, and Multinational business entities in Singapore.
SBS Consulting Pte Ltd
High Street Centre,
#17-02, 1 North Bridge Road,
Singapore – 179094
+ (65) 6536 0036