Guide to Statutory Compliance Requirements for a Singapore Company
Singapore’s streamlined incorporation process and excellent living standards attract many foreign entrepreneurs. However, once incorporated, companies must comply with statutory requirements from both the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS).
At Global Business 360, we understand the complexities of legal and compliance matters. Our expert team is here to assist with all aspects of annual filing, ensuring your company adheres to ACRA and IRAS requirements, whether active or dormant. Below is a detailed guide to the statutory compliance obligations for companies in Singapore.
1. Appointing a Company Secretary
A company secretary must be appointed within six months of incorporation. The secretary should be a resident of Singapore with thorough knowledge of ACRA and IRAS regulations.
2. Appointment of Auditors
New companies are required to appoint an auditor within three months of incorporation. However, companies may be exempt from auditing if they meet any of the following criteria:
- Fewer than 20 individual shareholders.
- Annual turnover below S$5 million.
- Qualification as a small company with annual revenue of S$10 million or less.
3. Registered Office Address
Your company must maintain a physical office in Singapore, which must be operational during normal business hours. All official correspondence will be sent to this address.
4. Local Resident Director
You must appoint at least one resident director who is 18 years or older. This person can be a Singaporean citizen, Permanent Resident, or holder of an EP, DP, or Entrepreneur Pass.
5. Unique Entity Number (UEN)
Every Singapore company is assigned a Unique Entity Number (UEN). This number must be included on all company documentation, such as invoices, business letters, and official notices.
6. GST Registration
Goods and Services Tax (GST) applies to the import and supply of goods and services within Singapore. Certain exemptions apply, such as financial services and residential property transactions. If most of your goods or services are exported, you may be eligible for a GST waiver.
7. Customs Registration (CR Number)
Companies involved in import, export, or trans-shipment activities must register with Singapore Customs and obtain a CR number.
8. CPF and Skill Development Fund Registration
If you employ Singapore citizens or Permanent Residents earning more than S$50 per month, contributions to the Central Provident Fund (CPF) are mandatory. Additionally, you must contribute to the Skill Development Fund (SDF) at a rate of 0.25% on the first S$4,500 of each employee’s monthly salary, which applies to both local and foreign employees.
9. Determine Your Financial Year-End (FYE)
Your company must select a financial year-end (FYE), which dictates the deadlines for submitting financial statements and meeting accounting requirements. We recommend setting your FYE within 365 days of incorporation to maximize tax exemptions, including a full tax exemption on S$100,000 of chargeable income for your first three consecutive Years of Assessment (YA).
10. Submit Estimated Chargeable Income (ECI)
Every company must submit its Estimated Chargeable Income (ECI) within three months of the financial year-end, even if no income was earned. If there is no income, a ‘nil’ ECI must be filed in accordance with IRAS guidelines.
At Global Business 360, we are committed to ensuring your company remains compliant with Singapore’s statutory regulations. Let us take care of the complexities, so you can focus on growing your business.