Singapore companies are required to conduct an AGM once every calendar year. Key requirements of the AGM are as follows:
A key legislative change under the Companies (Amendment) Bill 2017 include the exemption of private companies from holding AGMs if financial statements are sent to members within 5 months of the financial year end (“FYE”). However, companies must still hold an AGM or general meeting if requested by shareholders or auditors.
Singapore incorporated companies are required to prepare their financial statements in accordance with Singapore Financial Reporting Standards (SFRS). Financial statements are also required to be filed with ACRA in XBRL format, except for the following:
|Specific companies regulated by Monetary Authority of Singapore; and|
Companies allowed by law to prepare accounts in accordance with accounting standards other than SFRS, SFRS for small entities or IFRS.
|Financial statement highlights (FSH) in XBRL format and PDF copy of financial statements.|
|Solvent Exempt Private Companies (EPC)||Exempted, but encouraged to file full set of XBRL financial statements or FSH in XBRL format.|
|Insolvent EPC||Full set of XBRL financial statements or FSH in XBRL format.|
|Companies limited by guarantee; and|
Foreign companies and their local branches
|PDF copy of financial statements.|
A company is required to appoint an auditor within 3 months from the date of its incorporation, unless exempted. The Companies Amendment Act provides for certain audit exemptions, subject to fulfillment of certain criteria. For details, please refer to here.
ECI is an estimate of the company’s taxable income after deducting tax-allowable expenses for any year of assessment. Singapore companies are required to declare the revenue amount and ECI with Inland Revenue Authority of Singapore (IRAS) within 3 months of the financial year end for the company. A “nil” ECI needs to be filed even if the company estimates not to have any chargeable income.
Goods and Services Tax (GST) is a consumption tax levied on the supply of goods and services and the import of goods into Singapore. The prevailing GST rate is 7%, and is applied to the selling price of goods and services provided by GST registered business entities in Singapore. GST registration in required only if:
A GST registered business entity is required to submit a return to the tax authorities based on the accounting cycle, normally on a quarterly basis.