Know the Compliance Requirements for Singapore Companies
If you have just recently incorporated your Private Limited company in Singapore, there are statutory compliance requirements set by the Singapore Companies Act. Annual Filings for the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS) are necessary to continue your business in Singapore. Failure to fulfil any annual filings can result to penalties and legal problems for your company. Maintaining a good image of your company and staying compliant with the authorities will also be a factor in the future for any dealings with the Singapore government such as participating in government initiative projects and applications for work visas for your employees. Here’s a list of compliance requirements for Singapore Companies. Check them off your list and operate your business smoothly in Singapore.
Set Your Financial Year End
Companies in Singapore mostly set their Fiscal Year End at the end of the calendar year which is December. For other companies, the Fiscal Year is set every quarter (March, June, September). To qualify for the government’s Zero Tax Exemption scheme (Zero Tax for the first $100,000 of normal chargeable income for the first 3 consecutive YA), it is more advantageous to keep the company’s FYE within 365 days.
Obtain Proper Licenses To Do Business
To do the business, you must also register your business for the relevant licenses and permits. You may check the licenses required for trading various goods, importing products, animals, vegetables, or for operating businesses such as restaurants, medical facilities, etc. The government authorities which handle permits include the Singapore Customs, Agri-Food & Veterinary Authority of Singapore, Maritime Port Authority of Singapore, and more.
Registered Address And Business Hours
Upon registration of your company, it is a requirement to have a registered office address in Singapore. Business hours must also be maintained for atleast 3 hours on weekdays. Enrich Consulting provides Registered Address services for your convenience.
ACRA must be Updated of Changes in Company Details
All companies must update the Registrar (ACRA) on any changes in the composition of the Directors of the company, shareholders, share capital and officers or the authorities will impose penalties.
Display of Company Registration Number (UEN)
It is a requirement from the Singapore Companies Act that every company must have the Unique Entity Number (UEN) or your Registration number displayed on all your business letters, Business cards, statement of accounts, invoices, official notices and publications.
Appoint an Auditor
Within 3 months from company incorporation, it is required to appoint an Auditor unless exempted from audit requirements. Companies exempted from audit requirements must fulfil the following criteria:
- The annual turnover must be less than $5 million
- The individual shareholders must be less than 20
- Company must not have a corporate shareholder
Register with Singapore Central Provident Fund (CPF) & Skill Development Levy (SDF)
It is mandatory for any company to register for a CPF contribution for their local employees who are Singapore Citizens or Singapore Permanent Residents with a minimum salary of S$50 per month. The CPF is a compulsory pension fund for local employees where there is a percentage of contribution from the employer and the employee. The maximum contribution rate is 16% and 20% depending on the employee’s age, resident status, etc.
The company is also required to contribute to the skills development fund (SDF) payable by employers for all employees up to the first $4,500 of gross monthly remuneration at the rate of 0.25% or $2, whichever is higher.
Foreign workers such as Employment Pass, Spass, Work Pass are not included in the CPF contributions.
Obtain a Central Registration Number
For all businesses which deals with importing and exporting of goods in and out of Singapore including trans-shipment of goods, they are required to obtain a Central Registration Number from the Singapore Customs.
Register with GST
Companies with a revenue of more than S$1 million or currently making taxable supplies and the annual taxable revenue is expected to reach more than $1 million, must register for the Goods and Services Tax (GST). GST is a tax imposed on goods and services in Singapore and on the import of goods into Singapore. Goods exported from Singapore and international services provided from Singapore are exempted from GST. Voluntary registration of GST is also allowed however, it is subject to the discretion of the Comptroller in IRAS.