Singapore offers many advantages for businesses but like all places, they have filing requirements in order to meet regulations and maintain compliancy. There are several business types available in Singapore, including corporations and private limited companies, with the latter, or Pte Ltd, being one of the most popular.
The Singapore Private Limited Company operates separately from the owners of the business, so the individuals are protected from liability. Also, this business structure is treated as a tax resident, which makes it eligible for tax incentives and tax immunities. Since the Pte Ltd is treated as a local business, it is required to file annual returns with ACRA (Accounting and Corporate Regulatory Authority).
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Regardless of a business is inactive or actively doing business, the annual filing requirements with ACRA still apply. Under the Pte Ltd, companies are required to hold a general meeting each year where the annual financial statements are reviewed and approved by the shareholders.
The AGM (annual general meeting) can be conducted anywhere worldwide as long as the directors and shareholders are present, unless it is decided that written resolutions will be accepted. In addition to the presentation of financial statements, the following takes place:
- Director/Audit Report is approved
- The fees, salary and compensation amounts for the Director are accepted
- Auditors are reappointed
- Director is re-elected if necessary
- Dividend amounts are discussed and acknowledged
Requirements for Filing
During the AGM, there are specific documents that must be available to shareholders as well. In accordance with the Singapore Financial Reporting Standards, the following items are required:
- Director’s Report
- Auditors Report, if applicable
- Profit and Loss Statement
- Balance Sheet
- Cash flow Statement
- Equity Report Identifying Changes
- Notes to Support Financial Statements, as appropriate
Annual returns must be filed in XBRL format and submitted within four weeks of the AGM, to avoid penalties. Upon filing the annual return, the following details must accompany reports:
- Financial Statements
- Company Name and Registration Number
- Summary of Dividends and Share Capital
- Charges that were registered during the year
- Specific Dates of AGM, Accounts and Returns for the Year
- Details and Profiles of Company Officers and Shareholders
Filing requirements are an in-depth process. PikoHANA provides services to businesses in Singapore that will help ensure accurate and timely filing. Their experts stay abreast of all regulations and laws that pertain to businesses. In addition to helping you meet your annual filing requirements, they also offer assistance in routine accounting services so you can focus on developing your business.