ACRA (the Accounting and Corporate Regulatory Authority) is the national regulator of business entities, public accountants and corporate service providers in Singapore. Want to know more about what compliance requirements you need to maintain your Singapore company? We’ll cover them below.
Holding an AGM (Annual General Meeting)
File with: ACRA(as part of annual return)
When: once a year
Every company is required to have an AGM. An AGM allows all shareholders, directors, and officers of the company to come together to review the financial statements of the company and discuss other company issues.
When a company is incorporated, it must hold its first AGM in 18 months from the date of its incorporation. After that, a company should hold its AGM every 12 months, or 15 months from the date of its last AGM, whichever is earliest. However, meeting in person (or in Singapore) is not strictly necessary. Resolutions can be passed to dispense with AGMs and have all business conducted via written resolution.
(Want to know more about AGMs? Read our guide here.)
Preparing financial statements
File with: n/a
When: after the end of the financial year
A company’s financial statements are prepared after its fiscal year end. The directors of the company need to provide these financial statements as part of the AGM. The company’s annual financial statements must be compiled in accordance to the Financial Reporting
Standards of Singapore which must consist of:
- Comprehensive Income/Profit-and-Loss
- Financial Position (Balance Sheet)
- Cash Flow
- Equity Changes
Filing your annual return
File with: ACRA
When: within 1 month of your AGM
Usually undertaken by your company secretary, your company has to file the following information with ACRA to complete its annual return:
- Details of company officers
- Company financial report or declaration of solvency for exempt companies
- Your financial statements
- Any/all registered addresses
- Auditors if applicable
So what happens when companies fail to comply with ACRA’s duties?
The company directors are held liable to penalties. Moreover, there will also be a lot of hassle for company employees to resolve these issues which may affect daily business operations. Lastly, directors can be disqualified from becoming a director for any other companies.
Talk to us for practical advice if you have any questions about incorporation at [email protected]