To remain in compliance with local legislation, small and medium-sized firms (SMEs) in Singapore must comprehend the filing requirements established by the Accounting and Corporate Regulatory Authority (ACRA). There may be fines, late fees, or even legal action if certain deadlines are missed. This article offers a summary of ACRA filing deadlines, essential requirements, and crucial pointers for guaranteeing compliance to assist your SME stay on track.
Understanding ACRA and Its Role
The regulatory agency in charge of managing Singapore’s corporate entity registration and regulation is the Accounting and Corporate Regulatory Authority (ACRA). It guarantees that companies abide by the Companies Act and other pertinent laws, especially in regards to statutory filings and financial reporting.
The reporting requirements set forth by ACRA, which are intended to preserve accountability, accuracy, and transparency in corporate activities, must be followed by all SMEs in Singapore.
Key ACRA Filing Requirements for Singapore SMEs
- Annual Return (AR) Filing
All Singapore-registered businesses, including SMEs and private limited companies, are required to submit an Annual Return (AR) to ACRA. The identities of the directors and shareholders, as well as any modifications to the share capital or registration address, are all current information about the company that ACRA receives from the AR.- Deadline: Companies must file their AR within 7 months after the financial year-end (FYE). This is crucial for maintaining compliance with ACRA’s regulations.
- For example: If your company’s financial year ends on 31st December, your AR must be filed by 31st July of the following year.
- Financial Statements (FS)
SME financial statements must be prepared and submitted to ACRA. According to the Singapore Financial Reporting Standards (SFRS), these statements have to be accurate. Certain SMEs may choose to use simplified reporting under the “Small Company” criteria, depending on the size and type of the business.- For Small Companies: If your SME qualifies as a small company, you may be exempt from submitting full audited financial statements, but you still need to file a statement of solvency and unaudited financial statements.
- Deadline: The financial statements must be filed as part of the AR, within 7 months of the FYE.
- XBRL Filing (eXtensible Business Reporting Language)
Companies required to file full financial statements must submit them in XBRL format. This applies to most companies unless they meet the criteria for exemptions (e.g., small companies or dormant companies).- Deadline: XBRL filing should accompany the AR submission.
- Tip: Ensure you use the correct XBRL template depending on your company’s reporting status.
- Corporate Tax Filing
Filing corporate tax returns with the Inland Revenue Authority of Singapore (IRAS) is another crucial compliance step that’s connected to ACRA filings. While ACRA handles financial reporting, IRAS oversees taxation.- Estimated Chargeable Income (ECI): SMEs must file their ECI within 3 months after the FYE.
- Form C/C-S: This form for tax returns must be filed by 30th November for paper filing or 15th December for e-filing.
- AGM (Annual General Meeting) Requirements
All companies, including SMEs, are required to hold an Annual General Meeting (AGM) where the company’s financial statements are presented to shareholders. The AGM must be held before filing the AR.- Deadline: SMEs must hold their AGM within 6 months after the FYE. After the AGM is held, the AR must be filed within 7 months of the FYE.
- Exemption: Some private companies can be exempted from holding an AGM if all shareholders agree to dispense with the AGM requirement. However, this does not exempt companies from filing their AR and financial statements.
Recent Updates and Changes in ACRA Filing Requirements
Singapore has introduced several changes in recent years to simplify compliance for SMEs:
- Simplified Annual Return (AR): From July 2020, Singapore companies with no corporate shareholders and annual revenue of less than S$5 million are eligible for simplified AR filing, making compliance easier for small businesses.
- Waiver for AGM: Private companies can dispense with holding AGMs if their financial statements are sent to shareholders within 5 months after the FYE.
Penalties for Late or Incorrect Filing
ACRA imposes penalties for late or non-compliance with filing requirements:
- Late Annual Return: ACRA imposes a late lodgement penalty starting from S$300, with further delays potentially increasing the fine.
- Failure to File Financial Statements: SMEs failing to submit financial statements or submit incorrect ones face similar penalties, and directors may be held personally liable.
Moreover, consistent non-compliance can result in more severe repercussions, such as prosecution under the Companies Act, and ACRA has the authority to strike off companies that consistently fail to meet their filing obligations.
Tips for Staying Compliant with ACRA
- Use Accounting Software: Cloud accounting software that integrates with ACRA’s systems, such as Xero or QuickBooks, can automate the process of preparing financial statements, tracking deadlines, and filing AR.
- Set Reminders: Implement internal systems to track ACRA deadlines. Use calendar alerts or accounting software notifications to avoid missing important filings.
- Engage a Corporate Secretary: Appointing a qualified corporate secretary ensures that your company stays compliant with filing deadlines and helps manage the administrative burden.
- Stay Updated on Changes: ACRA regulations can change, so make it a point to stay informed about any updates in the compliance requirements for SMEs.
- Prepare Early for the AGM: Start preparing your financial statements early to ensure they are ready for the AGM. If your company is exempt from the AGM, you still need to send financial statements to shareholders within 5 months of the FYE.
Conclusion
Following ACRA reporting dates and guidelines is not only required by law for SMEs in Singapore, but it’s also a good approach to guarantee the long-term viability of the company. Maintaining compliance reduces risk of fines, improves reputation, and fosters confidence among investors, stakeholders, and clients. SMEs can concentrate on expansion while making sure they comply with all legal obligations by being aware of important dates, utilizing technology, and maintaining organization.
Singapore’s business-friendly atmosphere offers SMEs a lot of assistance, but businesses also have a responsibility to uphold legal requirements. Every SME in Singapore may have a hassle-free, seamless ACRA filing experience by carefully planning ahead, implementing cloud accounting systems, and working with corporate service providers.
Check out our website at https://ebos-sg.com/ to explore more articles and discover how our Cloud Accountant Services can support you on your business.
