The Comprehensive Guide to Filing Annual Returns in Singapore
Many business owners shrug off filing annual returns as a mandatory administrative chore. However, experts advise that your company’s governance depends on filing annual returns promptly and accurately.
Yes, filing your company’s annual return is challenging. However, you should not treat it just as a legal obligation.
Here is help: a comprehensive guide to filling annual returns for your Singapore company. Go on and read about the fundamentals, significance, and steps in filling and filing your company’s annual returns.
What is an Annual Return? Are Annual Returns Important?
Annual return is an electronic lodgement you must submit to the ACRA.
The information you submit through an annual return is used to update ACRA’s databases. The details about company’s corporate structure, financial health and operational status are of great help to them in making timely decisions.
Keep in mind that it is a legal obligation to all companies registered in Singapore. It is an opportunity for you to show your commitment to be accountable, transparent, and compliant with the regulations in force.
You can use annual returns to give your stakeholders a peek into the quality of your corporate governance. Use it as a tool to build trust and credibility with them. It also enables you to avoid penalties for late lodgement.
Is Filing an Annual Return a Must for You?
All Singapore-incorporated companies must file their annual returns with ACRA. As per the Company Law of Singapore, the following entities must comply with the mandate:
- Private companies
- Public companies
- Foreign corporates
- Limited Liability Partnerships
Your Comprehensive Guide to Annual Returns Filing
Documents Necessary for Filing an Annual Return
You must prepare several documents to comply with the filing annual return requirements.
- Company Details: Company’s name, company’s Unique Entity Number (UEN), and registered address in Singapore
- Main activities of company: Submit details if your company’s main and secondary business activities have changed
- Particulars of Company Officers: You must include names, nationality (for foreigners), Singapore ID numbers (for Singapore residents) of the directors and secretaries of your company.
- Particulars of Shareholders & Share Capital: Here, you must provide info about the shareholders and share holding structure of your company.
- Financial Statements (FS): You have to file your annual returns with FS in XBRL format prepared as per SFRS:
- Cash Flows statement
- Balance Sheet statement
- Profit & Loss statement
- Statement of Changes in Equity
You may have to get your FS audited by an auditor if your company fulfils any of the 2 criteria presented below. Your company has:
- 50 or more employees
- Total assets over $10 million
- Total annual revenue over $10 million
Where to File Annual Returns
You must file your company’s annual returns using a portal run by ACRA. It is called BizFile+. In fact, this portal is the central gateway for you or your company secretary to use to conduct all your corporate regulatory transactions and filings with ACRA.
Filing Your Annual Return on BizFile+
You can also hire a corporate secretarial services provider for the task.
- Use your Singpass or CorpPass to login in BizFile+ portal
- Search your company by its name or registration number to visit or access the profile of your company
- From BizFile+ dashboard allocated to your company select File an Annual Return
- Depending on your previous interaction, your annual return may come pre-filled with data. Check and update it carefully
- Depending on the financial reporting requirements applicable to your company, you may have to upload/submit additional data
- Check the data for accuracy and Submit your annual return
Your Comprehensive Guide to Annual Returns Filing
Annual returns filing is a complex and lengthy task. It is better left to experts. If you want to execute it accurately, you have to keep a few things in mind.
1 Submit Accurate Information
You should be careful to use the latest and accurate information. Pay particular attention to the completeness of the documents you have to submit. Make sure that the information presented in your Annual Return is up-to-date and reliable.
If required, access your company profile to verify and determine the missing details. It will enable you to avoid penalties and/or minimise fees for rectification.
2 Be Ready with a Plan
Start your preparations early to file annual returns without any hassle. Coordinate the activities of various departments to prepare the documents well in advance.
Help them set the deadlines for information collection, document reviews, and preparation of the final version of the documents. And you will be able to successfully avoid late lodgement fees.
3 Stay Updated
Regulatory requirements or procedures for filings keep on changing. You need to be aware of these changes and the obligations they create for your company. You have to understand their impact and incorporate them into your system to file your annual returns accurately.
A simple way of staying updated with regulatory changes is to subscribe to the latest info from ACRA. Ideally, you should let a company secretary services firm handle this task.
4 Get Time Extension
One of the benefits of hiring experts is they know the process inside out. They know the efforts and resources it takes to complete the task successfully within the deadlines.
More importantly, they have the latest regulatory updates and know how to apply them to your company’s task. If needed, they know where and how to apply to authorities and ask for a time extension to complete the task.
5 Resources Provided by ACRA
Annual returns filing is a tough but not impossible task. Still, you may need support to do it accurately. ACRA has a number of resources that you can use to finish and submit your annual returns.
On the other hand, you can use a professional corporate secretarial firm for the task.
FAQs: Filing Annual Returns in Singapore
Q1. What is the due date for annual returns filing in Singapore?
Singapore-incorporated listed companies must file annual returns within 5 months of their financial year end (FYE). Non-listed companies have 7 months from their FYE.
Q2. When Should I hold an AGM for my Company?
You have 4 months after the FYE to convey and hold an AGM for your listed company. And you have 6 months after FYE to hold an AGM for your non-listed company.
As the owner of a private company registered in Singapore, you may not have to hold its AGM if:
- All of your shareholders have passed a resolution to dispense with it;
- You send company’s FS to shareholders within 5 months after its FYE; or
- Your private dormant company is exempted from preparing FS
Q3. Do I Have to Pay a Penalty for Late Annual Return Filing?
Yes! You have to pay a penalty if you are late in filing your annual returns. You have to pay up to $600 as a late lodgement penalty for each late annual return filing.
Q4. Do I Have to Pay a Penalty for holding AGM late?
Yes! You have to pay a penalty of up to $500 for each late AGMs.
For a Singapore-registered business, filing annual returns is a must. SBS Consulting can help you file your annual returns carefully and on time. As a registered filing agent, we can also help you with company incorporation, bookkeeping, accounting, taxation GST filing Singapore. We strictly follow the regulatory guidelines to execute the tasks promptly and accurately.
Also Read: What is the tax exemption for company incorporate
