Many people who want to do business in Singapore often lack a guide that provides them with an overview of general requirements of statutory compliance, which applies to the private limited companies in Singapore.
Here is a guide on the statutory requirements in Singapore:
1. Company Secretary
Every company in Singapore must appoint/hire local company secretary who must have knowledge as well as experience to discharge his or her functions as the chief company secretary.
2. Registered Address
Every company in Singapore needs to have an office registered in Singapore that must be open at the same time accessible to the citizens during the normal office hours.
3. Local Resident Director
The Company has an option of having their preferred number of local as well as foreign directors. Nevertheless, it must have at least a director who is an ordinary resident in the country of Singapore i.e. Singapore Permanent Resident, Singapore Citizen, or an individual who have been issued with an Employment Pass or Entrepreneur Pass. Anyone that is above the age of 18 can be appointed as the director of a company. However, some individuals such as bankrupts may be disqualified from holding office as director.
4. Financial Year End
Every company in Singapore must always fix the financial activities at the end of the year (FYE). If a company is in form of a subsidiary, its FYE must also coincide with year-end financial statements of its holding company.
5. Appointment of Auditors
The companies also need to appoint a certified auditor within 90 days from the date of incorporation, unless they are exempted from the audit requirements. For a company to get exemptions from this audit requirement, it must satisfy the following requirements:
- All shareholders need to be individuals
- Total number of the shareholders need to be less than 20
- The company annual turnover must not be more than S$5 million
6. GST Registration
This is known as the VAT or Value Added Tax in some countries, and this means that GST is another consumption tax, which is levied on supply of goods as well as services as well as the import of these goods into Singapore.
GST is another indirect tax and often expressed in terms of percentage (now at 7%) and it is applied to selling price of goods as well as services provided. This means that you need to register your company if you want to have humble time enjoying the types of services that you offer to your customers.
The GST registration is needed only whenever a company falls in the following category:
- The net turnover is over S$1 million in the past 12 months or known as retrospective basis.
- There is enough reason to expect its net turnover to exceed S$1 million in the next one year (12 months) also known as prospective basis.
7. Business Licenses
Intended activities of the company may or even may not need a business license. Whenever your company needs a license, the managers must apply to obtain all necessary approval prior to commencing offering products or services through their business activities.
Every company must always keep accounting as well as other records essential to explain their transactions as well as their financial position and to allow for a profit and loss account before preparing a balance sheet. These accounting records need to be kept for five years after completion of the essential operations or transactions. Each director has a right to inspect these accounting records at any time.
Any Director shall disclose the following to the company:
- “Material personal interest” that the Director has and related to their affairs
- Interests that Directors believe it’s appropriate and able to be disclose to avoid any interest conflict or perception of any conflict of interest
10. Notification of Changes
Every time change occurs in particulars of company or even to its officers, change must also be lodged with the Registrar of Companies and on failure, this will always incur penalties.
11. Company Registration Number Disclosure
Singapore Companies Act at the moment requires each company to have their registration number together with registered name in all the business letters, invoices, official notices, publications and statements of account. This means that the company must always fill the corporate tax returns, or apply for the permits or the submitting CPF contributions of their employees. All existing companies will often retain their number of ACRA Registration as their UEN,
12. Annual Filing Requirements
Every company in Singapore must file all Annual Return with the Company Registrar at the same Annual Tax Return with the Revenue Authority.