Singapore Statutory Compliance Matters

By Author: Ashley V.
Total Articles: 63
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All private limited companies must comply with the statutory requirements by Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS). Hence, below are some filing requirement guide to be done annually by Singaporean companies. The FYE is the basis for which the deadline for accounting requirements submission is determined and financial statements are prepared. Every company in Singapore has to determine its Financial Year End or FYE. Each company has an Estimated Chargeable Income or ECI for a Year of Assessment (YA). IRAS requires every company to submit an ECI for the Year of Assessment within three months after the financial year ends.

Filing of ECI is mandatory regardless of the amount of income but for companies with zero income they will file a ‘NIL' ECI.

What are the benefits of early submission of an ECI?

There are many benefits you can get if you submit an ECI earlier. One of it is paying your tax in installment. To have this benefit, you need to file your taxes by these deadlines:

* e-File by the 26th of the month immediately after your ...
... accounting year-end 10 installments
* e-File by the 26th of the second month after your accounting year-end 8 installments
* e-File by the 26th of the third month after your accounting year-end 6 installments

An Annual Return with ACRA are required for the companies to file. The ACRA consists of important information of the company as well as its financial account reports. It must be submitted within a month of the Annual General Meeting (AGM). Within the 18 months of incorporation of the company the AGM is to be held. The subsequent AGM is held once every calendar year but should not be more than 15 months apart. It is a requirement for every business established to maintain the accounting records in compliance with the Singapore Companies Act and Singapore Financial Reporting Standards.

Below are some financial statements a company should prepare:

* Comprehensive Income Statement
* Balance Sheet Statement
* Cash Flow Statement

The final submission for corporate income tax return is every 31st of October. The statutory tax year is known as the Year of Assessment (YA). The tax calculation for your company's profits for the current YA is based on gross revenue from the preceding year. Documents to be submitted are the following:

* Tax computation
* Director's Report
* Form C

All Singapore companies are required to file audited or unaudited accounts.

* You may file an unaudited account, if you are an exempt private company with less than S$5 million of turnover
* With a revenue of more than S$5 million, you are required to appoint an auditor within three months of incorporation and have the company's account audited on an annual basis.

Every year before the end of July, Form C has to be submitted for the preceding FYE. However, if an ECI had been submitted within three months after the end of its accounting period, it will then provide the company an extension until December. All companies are required to submit a Directors' Report in accordance with the Singapore Companies Act. The following are the details needed in the abovementioned report:

* Unaudited financial statements such as balance sheet and income statements
* Supporting notes and disclosure of significant accounting policies applied by the company
* Disclosure of company's operations; and shareholders and directors' interests

You are required to hire a professional firm to act on your behalf, if you are a foreigner and wish to form a company in Singapore. Both the name reservation as well as the actual formation of the entity can be accomplished within 3 hours if all documents are in order due to the computerized system. If however, you are residing overseas, the logistics of getting the incorporation documents signed in front of a notary public and delivered back to us to form a Singapore Company might take a little longer.

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Asiabizservices is the leading Singapore Company Incorporation Services Specialists. It has successfully helped thousands of foreign entrepreneurs incorporate a Singapore company. Our office is located at Raffles Place, in the heart of the Singapore business district. ("CBD") If you're in our neighborhood and want to discuss any aspect of our service then feel free to come in to our offices during business hours.

Our phones are answered during business hours by specialists and not by an answering machine. We appreciate the value of your time and understand that a person cannot be replaced by technology. This is especially true when it comes to making important business decisions. If you are interested in learning more about Asiabizservices kindly email us at sales@asiabizservices.com or give us a call at +6563034614.