The Accounting & Corporate Regulatory Authority (ACRA) is the national regulator of Singapore’s public accountants, corporate service providers, and business entities. So, if you would like to learn more about what regulatory requirements you need to meet to maintain your company in Singapore, you have come to the right place.
Holding an Annual General Meeting (AGM)
All companies are required to have an Annual General Meeting (AGM). The reason why these meetings are so important is that they provide all shareholders, directors, and officers of a company with the opportunity to gather in one place and review the company’s financial statements – as well as to discuss other company issues – together. All newly incorporated companies are required to hold their first AGM within a year and a half from the date on which they were incorporated. After that, the company should have its AGM either every 12 months or every 15 months after the date on which its last AGM took place. However, this does not necessarily mean that meeting in person is a strict obligation.
But first, here is one crucial thing that you need to keep in mind at all times! If you prepare and submit your financial statements to your corporate secretary within a period of five months from your company’s Financial Year End, you are no longer required to hold an AGM. With this in mind, your corporate secretary has the right to file your financial statements with your annual return. However, if you fail to do this within a period of five months from your company’s Financial Year End, you are required to hold an AGM and submit this as a part of your annual return.
Preparing Financial Statements
A company’s financial statements are usually prepared after the company’s Financial Year End. The company directors must provide the company’s financial statements during an AGM. These statements must be compiled in accordance with the Financial Reporting Standards of Singapore and should always consist of the following things:
- Comprehensive Income/Profit-and-Loss
- Financial Position (Balance Sheet)
- Equity Changes
- Cash Flow
Filing Your Annual Return
In order to complete its annual return, the following information has to be filed by your corporate secretary:
- The company officers’ details
- Declaration of solvency for exempt companies or company financial report
- Your financial statements
- Any/all registered addresses
- Auditors (if applicable)
What Happens If Your Company Fails to Comply With ACRA’s Duties
One important thing that you need to remember is that company directors are always held liable to penalties. On top of that, company employees will also have to face a lot of hassle because of these issues, which could wind up negatively affecting the company’s daily business operations. That being said, if you have any questions regarding the company incorporation process in Singapore, do not hesitate to contact our team of professionals here at HeySara. We would be more than happy to help you out!