Director’s Compliance Program (DCP)
We received a telephone call this morning from a prospect client shouting for “help” !
This prospect client informed that his current accountant and company secretary did not conduct Annual General Meeting ( AGM ) and did not file Annual Return ( AR ) for his Dormant Company, even after received payment from him.
He is now invited by ACRA to attend a DCP or pay a fine of up to $10,000.
Let us explain what is DCP…
ACRA has also launched another initiative dubbed the ‘Directors Compliance Program.’
The program educates the first-time offenders and helps them in getting a grip on the situation.
The program informs about the directors’ fiduciary and statutory duties, penalties, and fines for non-compliance and the other administrative duties they must perform.
The ACRA sends a letter of notification to the directors of Singapore companies inviting them to attend one of the half-day DCP sessions if they have failed to,
1) Schedule an AGM (Annual General Meeting) within the 18 months from the date of registration of their company (or, in case of old companies, 15 months from the end of the last financial year of their company)
2) File accurate annual returns of their companies
DCP Allows you to Fine-free Late Filing of Annual Returns
The directors must attend a DCP session, once they get the letter inviting them to do so. It is compulsory and failure to do so is punished with the financial penalties.
However, on the plus side, directors get a grace period of 60 days prepare their accounts, hold their AGM and table their financial statements.
They do not have to pay any fine for late filing of their statements. Abiding by the deadline of 60 days is necessary as a failure in taking corrective actions brings financial penalties.
Nevertheless, the notification letter gives an alternative to the directors. It asks them to dissolve or strike off their companies before the date mentioned. In fact, ACRA demands that the striking off letters must be made before the date mentioned.
It pays for you to engage a reliable Company Secretary and Accountant to attend to your ACRA needs.
Don’t leave your reputation in the hands of shoddy corporate service providers, it’s not worth it.
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669
