Continuous Annual Compliance
This article features the compliance requirements applicable to the corporate entities in Singapore. The compliance with the requirements of the regulatory authority is not only practiced in Singapore. In fact, many countries across the globe are implementing scrutinized business practices that are favorable to both the company and its stakeholders.
For Singapore Private Limited Companies, the compliance of statutory requirements needs to fulfill the requirements of the Inland Revenue Authority of Singapore and the Accounting and Corporate Regulatory Authority.
- Once a company has been incorporated in Singapore as a company, it has to comply with the filing requirements of the Inland Revenue Authority of Singapore(IRAS) and the Accounting and Corporate Regulatory Authority(ACRA).
- The main reason why entities must stay compliant with requirements of the statute and authorities is to avoid the legal charges, penalties, and damage or negative publicity it may cause the brand.
- Every company in the Singapore is required to set up its Financial Year End. The Financial Year End covers a period of one year i.e. 365 days and takes into account all the accounting activities that were carried out during that time.
- Unless a private company is exempted from audit, it is required to appoint an auditor in less than three months upon incorporation.
- Every company operating in Singapore must have a unique registration number that acts as a point of identification. This registration number must be used on all the publications of and by the company.
- Should there be any changes in the structure and share capital, the company must dutifully notify the Registrar also known as ACRA. In the event that the company fails to notify ACRA about changes, the company may be subject to penalties.
- Depending on a company’s business activities, it may be required to obtain a license or permit from relevant government agencies before the company can commence operations.
- The registered office address of the company must be provided to ACRA and must be indicated in the certificate of registration. More so, the office must be accessible to the general public for at least three hours every workday.
- If the business nature of a company involves transportation services including import and export activities, it must register with the Singapore Customs. Once registered, it will be provided with a unique registration number called CR number.
- Goods and Services Tax or GST is levied on almost all of the goods and services in Singapore including imports in the city-state. However, exports are not subjected to GST. The current GST rate in Singapore is 7 percent.
- Any company registered in Singapore that has an annual turnover that exceeds or is expected to exceed S$1 million is mandated to be GST-registered.
- Companies operating in Singapore are required to carry out a pension fund scheme. In this scheme, both employee and employer are required to pay a specific amount, depending on the salary of the employee, to the said fund. Any employee residing in Singapore and earning more than S$50 per month must contribute. The contribution rate is between 16 to 20 percent subject to vary on factirs such as the employee’s age, resident status, etc.