A Singapore corporation provides several advantages especially in terms of bankruptcy protection and tax exemptions and benefits. With this, many foreign and local entrepreneurs choose this legal business formation for their companies.
However, corporations are required to follow certain legalities stated by the Singapore Companies Act. In addition, it is a mandatory for the business to submit an annual filing requirement to the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS).
Meanwhile, these are the basic legal requirements for corporations in Singapore, according to Asiabiz which is the countrys leading business solutions provider.
1. Company secretary
Within six months of incorporating a company, it is a legal requirement in Singapore to appoint a qualified secretary who must be a local resident and has a professional knowledge in handling all the compliance matters stated by the countrys corporate law.
2. Submission of the financial year-end document
This document is the basis for the deadline for the submission of the accounting requirements and financial statements.
3. Corporate meeting (also called as the annual general meeting)
This is a required formality which must be held within 18 months of incorporating a company. Meanwhile, the succeeding meeting will be held once every fiscal year but not more than 15 months apart.
4. Directors report
This report must consist the unaudited financial statements including the income statements, balance sheet, etc.; the directors and shareholders interest and accounts; disclosure of the companys operations; and documents showing the accounting policies adopted by the company.
5. Annual returns
Annual returns, which consist of financial accounts of a company, should be filed to ACRA one month after the companys annual general meeting.
6. Registration number
ACRA issues the business registration number which must be present on a companys invoices, billings, letterheads, and other business documents used for communications purposes.
7. Tax returns
Tax returns including the directors report, tax computation, and Form C must be filed earlier than 31st October.
8. Estimated chargeable income (ECI)
The ECI is an estimate of a corporations chargeable income for the Year of Assessment. To submit this requirement, a company should provide these following information: estimated revenue, financial year-end, and estimated profits.
9. Form C
This form should be filed every June after a fiscal year. However, this deadline may be extended until December if a company has submitted its ECI within three months after the end of its accounting period.
10. Audited or unaudited accounts
For a private limited company with less than S$5 million of turnover, IRAS will allow it to file unaudited accounts. However, the agency is stricter for the branch offices of foreign companies which are required to submit the parents audited financial statements.