Accounting

Year End Statutory Compliances Requirement

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It’s time of the year when my family insurance agent would call me for coffee to pass me diaries and table planners for next year, only did I realize the annual mad accounting and tax year-end routines as statutorily required by ACRA and IRAS are just around the corner.

I hereby would like to give gentle reminders to all business owners not to get into unnecessary trouble with ACRA and IRAS later :

 

(A) Financial Year End Compliances

Director’s Duty on Annual Financial Statements of his company
* Under sections 201(2) & 201(5) of the Companies Act, directors are responsible to present & lay before the company, at its annual general meeting, financial statements that:

  • comply with Accounting Standards issued by the Accounting Standards Council; and
  • give a true and fair view of the financial position & performance of the company.
In addition, directors of a company incorporated in Singapore are responsible to maintain a system of internal accounting controls, and keep proper accounting records that will enable the preparation of true and fair financial statements under sections 199(2A) and 199(1) of the Act, respectively.

Annual General Meeting (AGM)

* An AGM is a mandatory annual meeting of shareholders. 

* At the AGM, your company will present its financial statements (also known as “accounts”) before the shareholders (also known as “members”) so that they can raise any queries regarding the financial position of the company.

* A company is required to hold its first AGM < 18 months after its incorporation.

* Subsequent AGMs must be held every calendar year and the interval between AGMs should not be more than 15 months.

Fines
Financial statements laid at AGM are more than 6 months old for non-listed Company or > 4 months old for listed Company : S201(1) Composition sum of $300

Filing of Annual Return (AR)
* AR must be filed with the Registrar within 30 days after the AGM.

* For a Pte Ltd company:
Accounts presented at the AGM shall be made up to a date not more than 6 months before the AGM

* With effect from 3 March 2014, companies will file their financial statements in XBRL in accordance with the revised XBRL filing requirements.

* Fines
Companies & every director that breach these statutory obligations may be offered an opportunity to pay a composition sum of $300 per breach instead of facing prosecution.

Separately, a late lodgment fee will be imposed at time of lodgment, for each AR that is lodged late. S197(1b)


(B) Other Common non-compliances to take note :

Section 142(1) – Failure of a company to have a Registered office address
* A company shall as from the date of its incorporation have a registered office within Singapore to which all communications and notices may be addressed and which shall be open and accessible to the public for not less than 3 hours during ordinary business hours on each day, Saturdays, weekly and public holidays excepted. Failure to do so is an offence under section 142(2) of the Act.

Section 144 – Failure to publish Company’s Name and Registration Number
* Section 144(1) states that the name of a company shall appear in legible romanised letters on its seal; and all business letters, statements of account, invoices, official notices, publications, bills of exchange, promissory notes, indorsements, cheques, orders, receipts and letters of credit of or purporting to be issued or signed by or on behalf of the company.

Section 145(1) – Requirement to have at least one ordinarily resident director in Singapore
* Every company shall have at least one director who is ordinarily resident in Singapore and, where the company only has one member, that sole director may also be the sole member of the company.

Good Luck !

If you need help, feel free to contact us at :

(O) +65 63851011

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www.corporatebackoffice.com.sg

Written by Kelvin Loh