As the date of your company’s Financial Year End (FYE) approaches closer, business owners – especially those who have just newly-incorporated their companies – may not be familiar with the paperwork and filing obligations required for annual compliance matters.
In order to prevent fines and penalties resulting from the compliance matters, it is important that company owners understand these obligations and take note of their due dates.
In this comprehensive guide, we will cover the checklist of documents you need to prepare for filings and their corresponding timelines. For the ease of understanding, this guide is written for Singapore Private Limited Companies.
Annual Compliance Timeline
Generally, your company’s FYE is the deciding factor in the filing timelines of your annual compliance. There are two government agencies that all Singapore-registered companies need to comply with, namely – Accounting Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS).
The following table demonstrates the typical annual compliance requirements of a Singapore-registered company after the Financial Year End (FYE).
| Period | Annual Compliance Requirements | Government Agency |
|---|---|---|
| Within 3 Months from FYE | Must file Estimated Chargeable Income (ECI) | IRAS |
| Within 5 Months from FYE | Must have prepared the Financial Statement Report | ACRA |
| Within 6 Months from FYE | Must hold Annual General Meeting (AGM) | ACRA |
| Within 7 Months from FYE | Must file Annual Returns (AR) | ACRA |
| By 30th November for Each Year of Assessment | Must file Corporate Income Tax via Form C/C-S | IRAS |
What to do after your Company’s Financial Year End has ended?
Upon completion of your company’s Financial Year End, the accounts and financial statements must be prepared in order to fulfil the above stated compliance requirements.
Every compliance requirement would require the preparation of the company’s Financial Statement Report.
What is a Financial Statement Report?
For the sake of brevity, you may view a sample of compiled Unaudited Financial Statement Report HERE.
It should minimally consist of the auditor’s statement (if applicable), director’s statement, financial statements such as profit & loss, balance sheet, cash flow statement, and statement of changes in equity amongst others, as well as the notes to the financial statements.
Preparation of Management Accounts
The pre-requisite of preparing a financial statement report would be the preparation of the management accounts (View Sample). Usually a bookkeeper would be able to help you with it. This is because bookkeepers are in-charge of the data entry of day to day transactions, as well as having the right know-how to understand the different treatments and accounting classifications depending on the nature of the transactions.
With the right data entry, the corresponding management accounts can then be prepared. You may also use accounting software such as Xero or Quickbooks to help with your data entry; and such software will be able to generate the management accounts for you automatically (subject to your accurate input of data).
It is the responsibility of the directors of the company, to ensure that the accounts give a true and fair view of the financial position and performance of the company. Learn more about Directors' Duties in relation to Financial Reporting.
How to prepare a financial statement report?
In most cases, you should engage a qualified accountant to assist with the preparation of the Financial Statements (FS). This is because they must be prepared in accordance with the Singapore Financial Reporting Standards (SFRS).
Preparation of the FS is usually the last step of any accounting regime; and in order to do, the following must first be completed:
- Ensure all past transactions of the company are properly kept. This includes, bank statements, CPF statements, invoices, bills, receipts, cheque stubs, payment vouchers, and others.
- Proper bookkeeping and data entry into accounting software, or similar.
- Generate the management account reports.
- Compile the financial statement with the management reports.
- Compute the respective tax payable.
Filing of Estimated Chargeable Income (ECI)
The first annual compliance matter to file after your company’s FYE would be the Estimated Chargeable Income (ECI). ECI is the estimated calculation of your company’s taxable income, and essentially equivalent to paying your Corporate Income Tax in advance.
The filing of ECI must be submitted to IRAS within 3 months from the date of your company’s FYE, unless exempted.For example, if your company’s FYE is on 31st December 2020, the ECI for YA 2021 must be submitted by 30th March 2021.
From YA 2020 onwards, IRAS had made the ECI e-filing compulsory for all Singapore companies. You may be eligible for an interest-free GIRO instalment plan to pay your taxes if you file your ECI on time.
Documents and Information to prepare:
- Declaration of Company’s Revenue
- Particulars of the Company’s Contact Person
Typically, this task is performed by your company accountant or a tax agent.
Holding of Annual General Meeting (AGM)
Annual General Meeting (AGM) is a scheduled meeting, where the company presents its financial statements (FS) to members and shareholders, and answers any queries on the business. As part of the annual compliance requirements, all Singapore companies must hold an AGM once every calendar year, unless exempted, or dispensed.
For detailed AGM deadlines, please refer to the following table.
| For Non-Listed Companies with FYE before 31 August 2018: | For Non-Listed Companies with FYE after 31 August 2018: |
|---|---|
| First AGM: within 18 months of incorporation.
Subsequent AGM: Every calendar year at a maximum interval of not more than 15 months. Note: Financial statements that are presented at the AGM must be made up to a date within 6 months before the AGM date. | Hold AGM within 6 months from FYE. |
Documents and Information to prepare:
- Notices of AGM to all members
- Company’s Resolutions
- Financial Statements – according to the Financial Reporting Standards of Singapore (FRSS)
– Directors’ Statement
– Income Statement
– Financial Position Statement
– Changes in Equity Statement
– Cash Flow Statement
– Notes to the Financial Statement - Auditor’s Reports (if applicable)
Filing of Annual Returns (AR)
Annual Return (AR) is a mandatory electronic form that must be submitted annually to ACRA. The form contains important information about the company such as company and members’ details, shares details and financial statements.
Annual Returns must be filed to ACRA within 7 months from your company’s FYE, and a fee of $60 is payable per submission. Please refer to the following table for the detailed Annual Returns deadlines.
| For Non-Listed Companies with FYE before 31 August 2018: | For Non-Listed Companies with FYE after 31 August 2018: |
|---|---|
| File Annual Returns within 30 days after AGM.
For companies having a share capital and keeping a branch register outside Singapore, file Annual Returns within 60 days after AGM. In addition, note that the Annual Return can be filed only:
| File Annual Returns within 7 months from FYE.
For companies having a share capital and keeping a branch register outside Singapore,file annual returns within 8 months from FYE. In addition, note that the Annual Return can be filed only:
|
Information to have on hand:
- Company Name, Type and Registration Number
- Registered Address
- Principal Business Activities
- Summary of Capital Structure (Paid-up & Issued share capital)
- Particulars of Directors, Company Secretary, Auditors, and Shareholders
- Details of Financial Period
- Date of Annual General Meeting (if applicable)
- Financial Statement Report in Full or Partial XBRL Format
Filing of Annual Returns can be varied according to the companies, and also depends on matters such as whether or not the company is solvent/insolvent, active/dormant, or whether the accounts had been audited. Usually, a company secretary would be able to assist with both requirements of AGM and AR filings. In fact, our Company Secretary services have a Renewal Price Lock Guarantee and included in the $60 filing fees, at one fee, no surprises.
Filing of Corporate Income Tax (Form C/C-S)
Last but not least, filing of Corporate Income Tax to IRAS. Corporate Income Tax is an actual declaration of your company’s taxable income, in contrast to the estimation in ECI. If there are any discrepancies between your ECI calculation and actual tax payable amount, IRAS will either refund you or send you a notice of payment accordingly.
All Singapore companies must file their Corporate Income Tax by submitting their Form C/C-S to IRAS by 30th November of each year of assessment (YA).
The company owner, or a qualified tax agent will be able to perform the corporate tax filings. Alternatively, you may want to look at our Tax Services to understand how we’d help.
Conclusion
All of the above mentioned generally summed up the preparations needed as a company before the end of your FYE. If the above mentioned might seem confusing, or your company needs assistance at your side, feel free to contact us.
Running a company is not an easy feat. Make your day to day operations easier by engaging us. Your focus should be on your business. We’ll take care of the paperworks.
