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A Complete Guide to Filing Annual Returns for Singapore Companies?

Singapore has long been regarded as one of the best places to start and run a company. Therefore, Singapore is a popular choice for international entrepreneurs looking to set up shop.

A Complete Guide to Filing Annual Returns for Singapore Companies?

Singapore has long been regarded as one of the best places to start and run a company. Therefore, Singapore is a popular choice for international entrepreneurs looking to set up shop.

Because of a lack of knowledge, people often make errors when submitting returns and other required documentation. Regardless of the size or structure of a Singapore-based company, it must adhere to specific statutory responsibilities each year.

Singapore’s legislative requirements are plain and uncomplicated. There are many deadlines, but it is easy to lose track of them while you’re busy with the company’s development. A fee or penalty might be imposed if the deadline is missed. As a result, all Singaporean company owners must be aware of their responsibilities and establish a plan to ensure that they never miss a deadline.

To meet the requirements of the Singapore Companies Registry, ACRA, an AGM must be held, and an AR (Annual Return) must be filed each year. Active and inactive Singapore businesses are required by law to file their annual financial reports (ARs).

What Is the Purpose of an AGM?

All Singapore-registered businesses must have an AGM, or general meeting, once a year. In general, all of the company’s board of directors and stockholders attend this annual meeting. Annual General Meetings (AGM) are held to provide shareholders and other stakeholders with information on the company’s progress and financial standing and debate long-term strategic goals.

Financial Statements are Presented in a Certain Format
According to Singapore financial statement rules, the year-end financials must be produced. Depending on your situation, you may be required to submit these documents and your yearly return to ACRA. XBRL formatted financial statements must be submitted.
Form of Statement for Annual Returns

However, the XBRL is not mandatory for all corporate organizations to file their financial statements. The MAS regulates several specific financial services firms, including merchant banks, licensed insurers, and commercial banks.

Exempt Companies with less than 20 shareholders but no corporate owner are considered private. Financial reporting standards apart from SFRS, IFRS, or SFRS for Small Organizations were permitted for specific firms.

Exemption From Audit
All Singapore corporations are required to file annual returns. However, each company’s filing needs are unique. ‘Small companies’ and ‘dormant companies’ are free from the necessity of an annual audit.

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Criteria For a Small Business

Two of the following three characteristics must be met for a corporation to be considered a “small company”:

  • $10 million in yearly revenue is the upper limit for annual sales
  • There must be no more than S$10 million in total assets at any one time throughout that financial year
  • No more than 50 people may work at a time
A Slumbering Firm
A dormant business has not conducted any financial transactions during the accounting year in question. They are not required to provide audited accounts with their annualized return for these firms. A director’s report, an unaudited financial statement, may be prepared and submitted by them.
Submitting The AR
An AGM’s information and its financial statements must be sent within 30 days to the company secretary. Using BizFile, the secretary will submit the AR to ACRA.
Extension Of Time for The Preparation of Financial Reports
If the accounting information is not ready for the AGM and ACRA filing, the company secretary may seek a time extension. It’s possible to get a one- or two-month extension if the initial deadline has not expired.

Company Aims Will No Longer Be Required Under a New Legislation

Within five months after the end of the financial year, the Singapore Firms Act has been amended to allow private companies to forego annual general meetings provided they deliver financial statements to shareholders. The new amendment went into force on the 31st of August of this year.
Three Precautions
Three protections apply to the new amendment:
Non-Filing of the AR
Prosecution in a Court of Law
For three or even more filing infractions, the ACRA has the power to remove a director from their position. ACRA may also strike off a firm if it fails to meet yearly statutory rules, such as failing to submit its annual report for the last two years. A director will be ineligible for the following five years if ACRA removes three firms he runs in that period. For more details, you may check out the site of IMC.

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Making The Filing of Annual Returns More Efficient

Filing annualized returns in Singapore entails drafting financial statements, organizing and convening annual general meetings, and making the correct files to ACRA and IRAS within the specified deadline.

A company’s failure to achieve any standards might result in harsh penalties. Because of this, many Singapore businesses depend on an experienced professional services provider to help them through the yearly filing process and guarantee that they are in full compliance with Singaporean laws.

Companies registered in Singapore are required by law to have annual general meetings and to file annual reports. The AGM and the resulting financial statements serve their intended function by providing shareholders with regular information on the company regarding its performance.

Assuring ACRA of the company’s compliance with the Singapore Companies Act is made possible by filing AR with ACRA. ACRA issues yearly Certificates of Compliance to companies that meet all of their annual requirements.

However, while concentrating on your company’s development, it might be challenging to keep up with all of your yearly commitments. Organizing an AGM and submitting the AR on time may be made easier with the assistance of IMC company secretary. As a result, you may put your energy towards growing your business while we take better care of the deadlines.

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