Understanding Annual Return Filing in Singapore
If you have a private limited company, a dormant or active company, you are required by law to submit annual return filings in Singapore.
Every company that meets the aforementioned criteria must hold an Annual General Meeting as per section 175 of the Companies Act. This crucial meeting comes within 18 months of the company’s date of incorporation. Immediately, after the AGM according to Section 197 of the Companies Act, they are supposed to file their annual returns. Precisely, annual returns filing in Singapore must be done latest in a month after the annual general meeting.
Company Compliance Requirements for Private Limited Company in Singapore
- Preparation of annual financial accounts – Depending on the company’s financial transactions throughout the year, it is required that you put in order your financial accounts, as stipulated by the Financial Reporting Standards of Singapore. Therefore, for companies that have loads of financial activities every month, it is best if they employ the best bookkeeping services in between the year to ensure their accounts are in order. Your financial accounts should include a Statement of Financial Position (Balance Sheet), Statement of Comprehensive Income (Profit and Loss Account Statements), Statement of Changes and Cash Flow Statement.
- Declaration of the estimated chargeable income – It’s a requirement for all companies to file their Estimated Chargeable Income (ECI) unless they are exempted from doing so. The company is expected to file their company’s ECI with IRAS (Inland Revenue Authority of Singapore) 3 months after the financial year end.
- Audited financial accounts – When you are done with preparing your financial accounts, your firm might be required to audit their accounts. However, this will only be a requirement if the organization is a company with corporate shareholding or with an annual revenue over 5 million dollars. Then, you will need to submit this set of audited accounts when filing for the company’s annual return. Since you are not exempted from audit, you will need to file the financials in XBRL reporting.
- Filing annual return with ACRA – This is done one month after the AGM. Basically, it includes the details of company officers, auditors and the registered address. Also, you should attach the accounts of the company when doing the filing online.
- Filing of company’s annual tax returns – It is vital to file your company’s tax returns with IRAS. Singapore bases its taxation on the preceding year. For instance, profits accrued in the ending financial year will be the reference point while filing tax return in the current year.
Tax Return Filing vs Annual Return Filing
Tax returns submission are made to the Inland Revenue Authority of Singapore (“IRAS”) whereas the annual returns are submitted to the Accounting and Corporate Regulatory Authority (“ACRA”).
If your company is dormant, then you need to file tax returns in form C or form C-S. If you are submitting form C and if your company is audited, you need to furnish IRAS with the audited accounts as well. If one or two of your company’s shareholders are corporate, then you need to be audited and prepare an audited accounts and financial statements. If your company has more than 20 shareholders, the same applies.
If your company does not make a gross income of 5 million dollars, then you are exempted from filing audited accounts, sometimes also known as an EPC. This is the case with most companies in this country since most of them make less than 5million dollars a year and they have less than 20 shareholders. Thus, there is no need for them to file audited accounts signed by auditors.
Perform the statutory yearly annual return filing in Singapore
It is important to know that the company’s directors and secretary are responsible for annual return filing Singapore. Therefore, they should understand the requirements clearly. Some organizations opt to outsource annual return filing services just to be on the safe side. Whatever option you decide to use, just ensure to comply with the law.
J Accounting Services would suggest that you consider the pros and cons of doing it yourself. Most companies in Singapore would outsource these company secretary services to a third party corporate secretary specialist. With our company secretarial services, you will save time and money to build and focus on other important aspects of your business.