What are the future potential maintenance costs for my business

What is Annual Filing?

Under the Companies Act, all Singapore-incorporated companies are required to file Annual Returns (“AR”) with ACRA to ensure that the company’s information on ACRA’s register is up-to-date. All companies in Singapore are required to hold AGMs. The date of your company’s AGM must be declared to ACRA when filing your company’s Annual Return on BizFile. The AGM is a proper way for your company to present its financial statements (accounts) to shareholders (members).

Company officers may face enforcement action for failing to file their company’s annual return. 

Read: Steps to File an Annual Return

Appointment and Renewal of Nominee Director

A nominee director is a local individual whose name is on your business profile but does not take part in your business. According to Singapore’s companies law, it is compulsory to appoint a nominee director who is a legal resident of the Republic. This applies to foreigners setting up their companies in Singapore.  They will incorporate the company and may open bank accounts or perform other business activities as requested by the client.

Importantly, a nominee director ensures that the company complies with the requirements of the Singapore Companies Act. In addition, amendments were made to section 158 of the Singapore’s Companies Act with regards to the relaxing conditions for nominee directors to disclose information to nominating shareholders. This will facilitate more efficient management of groups with listed subsidiaries. Concerns relating to improper use of information or insider trading will be mitigated and governed under the Securities and Futures Act (SFA).

Read: Key Changes to Companies Act impacting Directors and CEOs

Auditing (Exemptible)

With the existence of economic opportunities and political stability, Singapore is a top business destination for investment and locating your business. Businesses must be accountable to the law, procedural and legally transparent.  All companies are subject to auditing of their bookkeeping at the end of each financial year. But, do you know that ‘small companies’ is exempt from having its accounts and financial statements audited? Yes, if it is an exempt private company with annual revenue of $5 million or less. Besides, your business should meet at least 2 or 3 following criteria for immediate past two consecutive financial years:

1. Total annual revenue of SGD 10 million or less；
2. Total assets of SGD 10 million or less；
3. No more than 50 employees.

Read: Key Changes Relating to Audit and Preparation of Financial Statements

Bookkeeping

All directors must ensure that the company keep proper records of their bookkeeping throughout the financial year.  Generally, the following documents are required to be properly filed by the company before finalizing at the end of each financial year, which include:

1. Sales invoice file
2. Payment Voucher file/Expenses file
3. Bank Statement file
4. Supplier Invoice file
5. Petty Cash file (if any)

All companies must bookkeep proper records by Singapore’s accounting practices and comply with the Singapore Financial Reporting Standards (SFRS).

At Acrabiz, we provide sound and reliable accounting and audit advisory services. We keep a better eye on your company’s books and help keep in check your companies’ financial health. Arrange a bookkeeping session with us to find out more.