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This article highlights all of the compliance requirements for Singapore private limited companies. Singapore Private Limited Companies are expected to stay compliant with the guidelines of the Singapore’s Companies Act. For more detailed information on how to Set up a company in Singapore, please refer to Guide: Singapore Company Registration.
Company Secretary
Singapore companies must employ local company secretaries. These professionals must be knowledgeable enough to discharge their duties efficiently.
Registered Address
Private limited companies in Singapore need to have a locally registered office. Such offices must be accessible to the general public in normal working hours everyday.
Financial Year End (FYE)
Companies in Singapore have to predetermine their Financial Year End (FYE). This term marks the end of an accounting period. Companies need not stick to December 31 as the proposed date of culmination of the accounting period. Dates which denote the end of a quarter are just as commonly in use; March 31, June 30 and September 30.
It is however recommended that new start-up companies keep their FYE within a period of 365 days. Such a move can help newly registered companies to enjoy the benefits of zero tax exemption for their first $100,000 of normal chargeable income for its first three consecutive YAs.
Local Resident Director
While it is permissible for Singapore companies to have any given number of local and overseas directors, it is an imperative for them to have at least a one local director who is a citizen of Singapore, a permanent resident or a person who has an Entrepreneur Pass or an Employment Pass.
There is no clause which precludes the appointment of individuals as directors. Individuals can be the director of a company in Singapore if they are above 18 years old, and are not declared bankrupt by the court of law or barred from holding the aforesaid position.
Appointing of Auditor
Companies in Singapore are recommended to appoint auditors for audit of financial accounts within 90 days of their incorporation. Exceptions to the rule are those companies which have less than 20 shareholders, no corporate shareholders involved, and the annual turnover of the company is below S$5 million.
Disclosure of Company Registration Number
Companies in Singapore as guided by the Companies Act are require having their Company Registration Number to be shown on all of their official documents. This number is also known as the Unique Entity Number (UEN). The UEN number have to be shown over various documents which include, but are not limited to, statements of account, publications, invoices, official notices and business letters etc.
The Company’s UEN number acts as a personal stamp of company and like a person’s genes it is a single identification number. The UEN number is being synchronised with all of the Singapore government agencies, therefore it is very useful while filing tax returns, applying for business licenses, or proposing and submitting employee’s CPF contributions etc.
Disclosure of Company Registration Number
Companies in Singapore as guided by the Companies Act are require having their Company Registration Number to be shown on all of their official documents. This number is also known as the Unique Entity Number (UEN). The UEN number have to be shown over various documents which include, but are not limited to, statements of account, publications, invoices, official notices and business letters etc.
The Company’s UEN number acts as a personal stamp of company and like a person’s genes it is a single identification number. The UEN number is being synchronised with all of the Singapore government agencies, therefore it is very useful while filing tax returns, applying for business licenses, or proposing and submitting employee’s CPF contributions etc.
Accounting Record
Singapore companies need to maintain thorough accounting records and must kept for at least 5 years after the completion of transations period; those which can describe the financial position of the company and shed light on all the transactions involved. The accounting records should accesible to all of the directors at any time for inspection and act as a guide while preparing the Profit and Loss statement and Balance Sheet of the company.
Registration for Goods and Services Tax
Goods and Services Tax (GST) applies to cases where supply of goods and services is involved. It is a wide-ranging consumption tax imposed on import of goods and is also levied on goods and services supplied in Singapore. The Singapore tax authority responsible for collecting it. GST is presently charged at 7% of the value of goods and services provided by Singapore businesses. All Singapore GST registered entities are required to file the returns based on the company’s accounting cycle, usually on a quarterly basis.
Companies are required to register GST if the annual turnover or expected revenue in excess of S$1 million. Voluntary registration to GST is also permissible in Singapore.
Annual Filing Requirements
Each year Singapore companies must file their Annual Returns with the Company Registrar and filing of Annual Tax Returns with the Singapore Revenue Authority.
Business Licenses
Most companies in Singapore do not need a business license to conduct the intended activities of their business. However, if the company’s business activity falls under those catogaries which requires a business license to operate in Singapore, then the company must obtain one before commencing to operations.
Notification of Changes
Any alteration in the particulars of the company need to be reported to the Singapore Registrar of Companies. Private Limited companies can incur penalties if they fail to perform this duty.