Company Annual Review
Company Annual Review in Singapore - Essential Information for Incorporation
The Company Annual Review is a crucial annual process for private limited companies in Singapore. It includes holding an Annual General Meeting (AGM) within 18 months of registration, submitting financial statements, filing tax returns, and ensuring compliance with regulatory requirements. Understanding these essential filings, deadlines, and obligations will help keep your company in good standing and fully compliant with Singapore’s regulations.
Important Reports for Your Annual Review
Ensure compliance with these key documents and filings.
Key Elements of the Annual Review Process
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Filing Annual Returns with ACRA
Every company must file its annual returns with the Accounting and Corporate Regulatory Authority (ACRA), ensuring that company details (directors, shareholders, etc.) are up-to-date.
Deadline: Within one month after the AGM. -
Holding the Annual General Meeting (AGM)
The AGM is a mandatory meeting with shareholders to discuss the company’s performance. It must be held within 18 months of the company’s registration, and annually thereafter.
Key Actions: Present financial reports, elect directors, vote on resolutions. -
Preparing and Submitting Audited Financial Statements
These include accounting ledgers, income statements, balance sheets, and cash flow statements. They provide a detailed overview of your company's financial health.
Deadline: AFS must be submitted after the AGM, within one month. -
Tax Filing and Financial Statements
Your company must submit an annual tax return to the Inland Revenue Authority of Singapore (IRAS). The tax is calculated based on pre-tax profits, with a corporate tax rate of 17%.
Tax Exemption: New companies may receive a 75% tax exemption on the first $100,000 of chargeable income for the first three years. -
Updating Company Information with ACRA
Ensure all your company details (directors, shareholders, registered address, etc.) are up-to-date with ACRA. Any changes must be reported to maintain accurate records.
Deadline: Changes must be filed within 14 days of the change occurring.
Why Timely Compliance is Critical
Timely submission of filings and holding the AGM helps maintain transparency and good governance. Failing to comply can lead to penalties, fines, and even the removal of your company from the ACRA register. Below are the risks associated with non-compliance:
How Can Yobbi Consultancy Assist You?
At Yobbi Consultancy, we specialize in helping businesses navigate the complexities of company incorporation and ongoing compliance in Singapore. Our services include:
Frequently Asked Questions
What is a Company Annual Review?
A Company Annual Review is a mandatory process for all companies in Singapore. It includes the filing of financial statements, holding of an Annual General Meeting (AGM), submission of tax returns, and updating company details with ACRA. Ensuring compliance with these requirements helps your company avoid legal and financial penalties.
How often do I need to hold an AGM?
An AGM must be held within 18 months after the company is registered, and then annually thereafter.
What happens if I miss the AGM deadline?
Missing the Annual General Meeting (AGM) deadline in Singapore can lead to significant consequences for both the company and its directors. Here’s a breakdown of what might happen:
- Fines: Directors can face fines ranging from SGD 300 to SGD 1,000 for failing to hold the AGM.
- Company Status Affected: The company may lose its good standing with ACRA and could be struck off the register.
- Director Disqualification: Directors may be disqualified from holding office for up to 5 years.
- Loss of Shareholder Trust: Missing the AGM damages relationships with shareholders and investors.
- Inability to File Annual Returns: Failure to hold an AGM prevents the company from filing Annual Returns with ACRA.
How do I file my tax return?
Your tax return should be filed annually with IRAS based on your company’s profits. Yobbi Consultancy can assist with filing your corporate tax report.
Do all companies need to submit audited financial statements?
Most companies need to submit audited financial statements, but small companies with revenue below SGD 10 million may be exempt.
How long does the annual review process take?
The annual review process typically takes a few weeks to a few months. The timeline depends on factors like the complexity of your financial statements, scheduling the AGM, and filing requirements with ACRA and IRAS. On average, most companies complete the process within 1 to 2 months, but it may take longer for companies with more complex financials or scheduling delays. We can assist with the process, ensuring everything is handled efficiently and on time.