In Singapore, each organization is responsible for getting its financial statements and records checked by an auditor once every year.
This permits an organization’s bookkeeping records to be analyzed impartially giving investors more noteworthy trust in the business.
Nonetheless, there are a few circumstances where organizations might be absolved from examining, particularly on the off chance that you are a small organization. Incidentally, on the off chance that you discover bookkeeping a tiring process, our accountants can assemble administrative work, check numbers, and document yearly profits for time for you, ideal for occupied organizers.
What is an audit exemption?
On 1 July 2015, the Companies (Amendment) Act regulated by lawmakers, allowing small companies to qualify for an audit exemption in Singapore. This goes the same for any foreign business owners who wants to come into Singapore to expand their business!
Criteria you must meet before qualifying for an audit exemption
- Be a private limited company over the two preceding financial years.
- Be considered a small company, with at least 2 out of 3 of these criteria met:
- Have a total annual revenue not exceeding S$10 million
- Have 50 full-time employees or less at the end of the financial year
- Have total assets not exceeding S$10 million (as at the end of the financial year) annual revenue of $5 million or less
In Singapore’s Law, companies are considered private limited as long as:
- Minimum of 20 shareholders,
- No more than 50 shareholders.
- Cannot sell shares to the public.
- Able to issue stock or additional shares to existing shareholders.
What if my company was incorporated before July 2015?
If your company was registered and created before 1 July, 2015, it could still qualify for an audit exemption as. However you must hit these criteria’s:
- It is a private company
- It meets the above criteria for a small company, whether in the first or second financial year after 1 July, 2015.
Can Group organizations qualify for a audit exemption?
On the off chance that you have a Group of organizations, at that point your holding organization (otherwise called a Parent organization) and its auxiliaries could meet all requirements for an audit exemption on the off chance that it satisfies the standards as expressed previously.
Generally, if your group is searching for a audit exemption for the financial year 2020, it must meet the above standards for a little gathering in the Financial year of 2018 and 2019.
Your gathering’s individual organizations should likewise each meet the requirements of a small organization.
Whether or not your organization is absolved from a audit, it is crucial that you keep up appropriate accounting records, since your business’ yearly fiscal reports are required when petitioning for Corporate Income Tax Returns.
Do you feel like accounting is an issue? Send us your docs the moment you have them: we accommodate at regular intervals and show what’s absent
