What are the annual regulatory compliance requirements in Singapore?

Posted by Cheryl Lee on February 7th, 2021

What are the annual regulatory compliance requirements in Singapore?

There are several government bodies that oversee annual regulatory compliance requirements. Generally, all companies would need to comply with the requirements governed by the Accounting and Corporate Regulatory Authority (“ACRA”) and Inland Revenue Authority of Singapore (“IRAS”).

1. Preparation of Financial Statements

A company’s financial statements should be prepared after its financial year end; and is one of the annual compliance requirements that can be anticipated well in advance.

However, the Companies’ Act acknowledges that not all companies have had sufficient activity during the financial period or financial year to warrant engaging auditors to perform a full statutory audit. These companies are known as small or dormant exempt private companies (“EPCs”) and their exemption is subject to their fulfilment of the following criteria:

- Annual turnover of less than S million

- None of its shareholders are corporate entities

- Has 20 or fewer individual shareholders

2. Preparation of XBRL and Filing of Annual Returns

With effect from 3 March 2014, ACRA has mandated that private limited companies and public companies limited by shares should prepare and submit their financial statements in full XBRL (eXtensible business reporting language) format when they submit their Annual Returns. Small or dormant EPCs are allowed to submit their financial statements in partial XBRL format.

For those unfamiliar with accounts and the XBRL software, preparation of financial statements in full or even partial XBRL format will pose a huge challenge. Hence, it is advisable to seek the professional services of an accounting firm to assist you in doing so.

Given that the Annual Returns are required to be submitted to ACRA within one month from the date of AGM, companies can anticipate when their financial statements in full or partial XBRL format should be ready.

Read our Regulatory Compliance Guide in Singapore at Singapore Company Incorporation website.