Company Filing: What You Have to Do Now

0
78

Private limited companies in Singapore must file annual returns, and the information in this guide explains how to do so. Dormant and active businesses alike are subject to these regulations.

How Financial Statements Are Prepared

The Financial Reporting Standards of Singapore mandate that your firm’s annual financial statements be produced in accordance with the monetary transactions that transpired during the accounting year. We highly recommend that you do monthly bookkeeping if you have a modest to large volume of accounting transactions each month in order to keep your ledgers organised.

Your records will be accurate as a result. But if your monthly financial transactions aren’t that numerous, you may want to consider doing your accounting on a quarterly or annual basis instead. It’s important to include a statement of comprehensive income (also known as a Profit and Loss Account), the balance sheet, the statement of cash flow (also known as a Statement of Changes in Equity), and a statement of equity. While Filing Requirements for Companies in Singapore you need the best options here.

Estimated Taxable Income Declaration (ECI)

Estimated Chargeable Income (ECI) forms must be submitted to IRAS by Singapore corporations within three months of the company’s fiscal year end in order to fulfil its duty to report revenue and Estimated Chargeable Income (ECI) (ECI). It is nevertheless necessary for the company to file an ECI with a “Nil” status even if it feels it does not have any chargeable income.

incorporation service

Financial Statements Analysis and Verification

You may be required to have your company’s financial accounts audited if any two of the following conditions are met:

  • Over 10 million Singapore dollars in annual income, or over 10 million Singapore dollars in total assets.
  • Over fifty employees are employed by the company in some capacity.
  • As part of a broader group, the business will be evaluated on a consolidated basis across the board.

Shareholders’ Annual Meeting (AGM)

Every Singaporean company is expected to have an Annual General Meeting (AGM) at least once a year for its shareholders to discuss the company’s progress. While attending an AGM, keep the following suggestions in mind:

An AGM must be held within 18 months of the company’s inception, and no more than 15 months must elapse between subsequent AGMs.

There must be no more than six months previous to the AGM at which accounts are presented. If a resolution to that effect is made at a general meeting of the business and receives agreement from all members who have voting rights, private corporations may avoid annual general meetings.

Annual Income Tax Return to be Filed with ACRA

Every Singapore company must file an Annual Return (AR) to ACRA within one month after the completion of its annual general meeting (AGM). Having information about the company’s executives, its registered location, and its auditors is essential for an AR (if appropriate). The rules now in place govern how a corporation’s accounts may be seized.

Annual Tax Return Submission to IRAS

Every Singapore company must file its annual tax return to IRAS by the 30th of November. Singapore bases its tax calculations on the previous year’s earnings. You’ll use the profits from the fiscal year that ended the year before to prepare your tax return for the current year.

It’s important to remember that the company’s directors are responsible for ensuring that the annual filing criteria are met. Failure to adhere to statutory compliance standards is a felony that may result in fines or possibly criminal prosecution.