Under the Singapore Companies Act, your business needs to maintain scrupulous records of all business transactions, including invoices and receipts, sales listings and bank statements.
In addition, you need to follow strict compliance regulations set by both ACRA and IRAS to ensure you don’t risk of unnecessary penalties down the line. Following these regulations not only helps your company achieve transparency and clarity but also helps potential investors determine your company’s performance.
To stay compliant, your company needs to:
- Establish a local registered office address in Singapore
- Appoint an auditor within the first three months (but only if the company has corporate shareholders, more than 20 individual shareholders or an annual turnover exceeding S$5 million)
- Determine a financial year end
- Continually notify ACRA of any changes to the company structure such as transfer of shares, increase in capital or the resignation of directors
- Complete the following documentation each financial year
|Estimated chargeable income||An estimate of chargeable income for the Year of Assessment (YA) submitted within three months after the end of financial year|
|Accounting records||Profit and loss accounts, a balance sheet, cash flow statement and equity statement|
|Tax returns||Audited/unaudited accounts with a tax computation form|
|Financial report||A financial statement for the company|
Under the Employment Act, you must pay your employees’ salaries at least once a month and within seven days of the end of the salary period. For Singapore citizens and permanent residents, you also need to stay on top of your CPF contributions. The WorkRight campaign launched by the government now gives employees an opportunity to flag up any late payments of CPF funds, so it’s absolutely imperative you have a streamlined system in place.