Singapore’s business environment is structured, but compliance mistakes can lead to costly fines, especially for small companies. Many errors are avoidable with awareness and organization. Below are the top compliance pitfalls and how to sidestep them.
Meet Filing Deadlines
One of the most frequent mistakes is missing ACRA annual returns or IRAS tax filing deadlines. These are non-negotiable, and delays trigger penalties.
Annual returns are due within seven months of the financial year-end. Tax returns must be filed by November. Repeated misses can escalate to legal action. Track deadlines with reminders or use corporate secretarial services to stay compliant.
Appoint a Company Secretary
Every Singapore company must have a qualified company secretary within six months of incorporation. This role manages compliance tasks like filings, resolutions, and record updates.
Not appointing a secretary or using someone unqualified can lead to fines. Secretarial services can take on this role if your team is short on time or expertise.
Inform ACRA of Changes
Changes like new directors, address updates, or share issuances must be reported to ACRA, usually within 14 days. Failing to notify risks fines or director liability if records don’t align with reality.
Report changes to your secretary or service provider promptly to maintain compliance.
Prioritize Record-Keeping
Singapore law requires companies to keep records, including shareholder and director registers, meeting minutes, and resolutions. Startups often neglect this, thinking it’s low priority. Missing records can complicate audits or funding rounds, and ACRA can issue penalties.
Designate someone to manage records or rely on secretarial services to keep them organized.
Clarify AGM Requirements
Private companies can avoid Annual General Meetings if they send financial statements to shareholders within five months of the financial year-end. If this doesn’t happen, an AGM is mandatory. Misunderstanding this can lead to compliance issues.
Check your AGM obligations with your secretary annually to avoid errors.
File Taxes, Even With No Income
A common myth is that companies without profit don’t need to file tax returns. All companies, even dormant ones, must submit annual returns to IRAS. Skipping this can lead to fines or deregistration.
Consult an accountant or corporate secretarial services to ensure timely filings, including for zero-income returns.
Use a Compliant Address
Your company needs a Singapore address, accessible three hours daily on business days. An unsuitable address or failing to update it can result in missed notices and fines.
Corporate secretarial services often provide compliant registered address options for businesses without a physical office.
Avoid DIY Compliance Pitfalls
Handling compliance yourself may save money initially, but mistakes like wrong filings or missed deadlines are common without expertise. Correcting errors can be costly.
Secretarial services ensure compliance is done right, saving time and reducing risks.
Stay Compliant, Stay Fine-Free
Singapore’s rules are straightforward but require diligence. Fines often come from minor oversights. Regularly check your filings and records, and consider corporate secretarial services for support.
Proactive compliance keeps your business safe from penalties.
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