Table of Contents
- What filing requirements must my company fulfill to remain compliant in Singapore?
- Why a Singapore company should stay compliant
- Financial Year End (FYE)
- Appointment of Auditors
- Company Registration Number Disclosure (UEN)
- Notification of Changes
- Business Licenses and Permits
- Registered Office Hours
- Singapore Custom – Central Registration (CR) Number
- Singapore Goods and Services Tax ( GST) Registration
- Registration with Singapore Central Provident Fund (CPF) & Skill Development Levy (SDF)
Singapore Statutory Compliance Requirements
What filing requirements must my company fulfill to remain compliant in Singapore?
Now that you’ve incorporated a private limited company, how do you stay in compliance with Singapore’s business laws or regulations?According to the Singapore Companies Act, companies must comply with the annual filing requirements to the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS). Please note that annual filings are mandatory for both active and dormant Singapore companies.
Why a Singapore Company Should Stay Compliant
All Singapore private limited companies must stay in compliance with the Companies Act and other statutory requirements to maintain a good track record for brand equity as well as good corporate governance.
By complying with regulations, your company avoids not only penalties or legal repercussions, but unnecessary damages to your brand name.
Financial Year End (FYE)
Each company in Singapore has to determine its Financial Year End (FYE) or the completion of an accounting period. A company’s FYE does not necessarily need to fall on December 31.
Most companies use either the end of the calendar year (December 31) or the end of any of the quarter (March 31, June 30, or September 30) as their fiscal year end date.
Did You Know?
It is best to keep the company’s FYE within 365 days in order to enjoy the Zero Tax Exemption for new start-up companies (full tax exemption on the first $100,000 of normal chargeable income for its first three consecutive YA).
Appointment of Auditors
All Singapore companies must appoint an auditor within 3 months from the date of incorporation, unless exempted from audit requirements. To be exempted from audit requirements, a company must satisfy all of the following criteria:
- Small Company Criteria: Applies if the company is privately owned, and meets at least two of the following in the current year:
- Annual revenue up to $10 million.
- Total assets up to $10 million.
- No more than 50 employees.
- Small Group Criteria: Applies if the group meets at least two of the following for two consecutive years prior to the current financial year:
- Consolidated revenue up to $10 million.
- Consolidated total assets up to $10 million.
- No more than 50 employees in total.
- Dormant Company: Applies if there have been no accounting transactions since incorporation or since the end of the previous financial year.
Company Registration Number Disclosure (UEN)
The Companies Act requires every company to have the Company registration number, known as Unique Entity Number (UEN), on all business letters, statements of account, invoices, official notices, publications, etc.
Notification of Changes
It is the company’s responsibility to update the Registrar (ACRA) of any changes in the company pertaining to the company’s shareholders, share capital and officers within the stipulated time.
Failure to do so will result in penalties.
Business Licenses and Permits
Some business activities in Singapore are subject to regulation by government authorities. Even if your business firm has been registered you cannot begin operation unless you have the necessary approval or license from the relevant government authorities.
Registered Office Hours
All companies must have a registered office address in Singapore and the office must be opened to public for minimum of three hours per day during normal business hours on weekdays.
Small businesses operating from home can use their residential address as the registered office under the Home Office Scheme, overseen by the Housing Development Board (HDB) for HDB flats and the Urban Redevelopment Authority (URA) for private residences.
Singapore Custom – Central Registration (CR) Number
If your business activities involve the import and export or trans-shipment in and out of Singapore, your company will have to register with the Singapore Customs and obtain a CR Number.
Singapore Goods and Services Tax ( GST) Registration
Goods and Services Tax (GST) is a tax on the supply of goods and services in Singapore and on the import of goods into Singapore. Goods exported from Singapore and international services provided from Singapore are exempt from GST. The current GST rate is 9%.
All Singapore companies must register for GST if their annual taxable revenue is more than S$1 million, or currently making taxable supplies and the annual taxable revenue is expected to be more than S$1 million. The business must register for GST within thirty days from the time it is deemed liable.
You may also choose to register for GST voluntarily. Approval for voluntary registration is at the discretion of the Comptroller in IRAS. Once approval is given, you must remain registered for at least two years.
Registration with Singapore Central Provident Fund (CPF) & Skill Development Levy (SDF)
The Central Provident Fund or CPF is a compulsory pension fund scheme in which the employer and employee contribute a percentage of the monthly salary to the fund. CPF contribution by the employer is mandatory for all local employees who are Singapore citizens or Singapore permanent residents earning more than S$50 a month. The maximum CPF contribution rate for employer and employee is 17% and 20% respectively and can be lower depending on certain factors such as employee age, permanent resident status, etc.
All work passes and employment pass holders are exempt from CPF contributions.
However, the employer (company) is required to contribute a fee to the skills development fund (SDF). SDF contribution is payable by employers for all employees up to the first $4,500 of gross monthly remuneration** at the rate of 0.25% or S$2, whichever is higher.
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FAQs
- No, the exemption applies only to the first three consecutive YAs after incorporation, regardless of profit. If there’s no chargeable income during these years, your company cannot utilize the exemption later.
- No, you cannot use the existing GST registration number of the acquired business. You are required to cancel the GST registration of the acquired business, as it is considered to have ceased operations.
Should you need to register for GST due to the acquisition or any changes in the business structure, you must apply for a new GST registration.
- A company is considered a small company for a given financial year if:
- (a) it is a private company during that year; and
- (b) for the two preceding consecutive financial years, it satisfies at least two of the following three thresholds:
- Its annual revenue does not exceed $10 million;
- Its total assets are valued at no more than $10 million;
- It employs 50 or fewer people.
Stay on top of statutory compliance requirements
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