Company Annual Returns

The annual audit of a Singaporean company is an important annual requirement that entails the preparation of complete financial statements and the selection of a suitable auditor. In the process of the annual audit of a Singaporean company, the documents that the company needs to sign mainly include an audit engagement letter, an audit report, financial statements, and tax returns. Failure to submit the reports and documents within the stipulated time frame can result in fines and other legal consequences. Therefore, companies need to take the annual audit of Singaporean companies seriously to ensure the authenticity, accuracy, and completeness of the company’s financial statements, as well as to protect the rights and interests of investors and stakeholders.

Services included in the Singapore company’s annual audit:

  1. Appointment and renewal of matters such as statutory secretaries and addresses
  2. Preparation of accounting data and issuance of financial reports, with the need for an audit determined based on the circumstances
  3. Convening of the annual general meeting of shareholders and submission of relevant documents
  4. Preparation of corporate income tax returns

Company Annual Returns Process

01

Prepare Annual Financial Statements

Firstly, the company needs to prepare its annual financial statements, including the balance sheet, income statement, and cash flow statement. Subsequently, these statements must undergo an audit conducted by a registered or public accountant, accompanied by an audited report.

02

Submission to ACRA

Next, the company needs to submit the financial statements to the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. If the company's annual income exceeds 1 million SGD, it is also required to submit income tax return.

03

Conduct Audit

ACRA will audit the company's financial statements and issue an audit report to ensure compliance with Singapore's financial reporting standards. If ACRA identifies any issues, the company will need to adjust and resubmit the statements.

04

Tax Filing

During the annual audit, the company needs to file taxes with the Inland Revenue Authority of Singapore (IRAS). Tax filing includes income tax, goods and services tax, and contributions to the Central Provident Fund (CPF) by the employer, among others.

05

Update Company Information

Upon completing the annual audit, the company needs to update its information registered with ACRA, including directors, shareholders, and company address, among others.

Company Annual Returns Timeline

The timing of the annual audit for Singaporean companies depends on the company’s registration date and financial year-end. According to Singaporean regulations, the financial year-end must occur within 12 months of the company’s registration. For instance, if a company registers on January 1, 2021, its financial year will end on December 31, 2021.

Companies are required to complete their annual audit within 6 months after the financial year-end. For example, if the company’s financial year ends on December 31, 2021, the company needs to complete the annual audit by June 30, 2022.

If a company requires an extension for the annual audit, it can apply for an extension from ACRA. However, the extension application must be submitted before the annual audit deadline, and substantial reasoning needs to be provided.

Materials Required

1. Audit Engagement Letter
The audit engagement letter is a contract between the company and the auditor, outlining the auditor’s responsibilities and obligations. It typically includes the audit period, audit fees, audit scope, and audit procedures.

2. Audit Report
The audit report represents the auditor’s evaluation and recommendations regarding the company’s financial statements’ accuracy and completeness. It generally includes the auditor’s opinion, audit scope, audit procedures, and audit findings.

3. Financial Statements
Financial statements are essential documents that companies must submit annually, reflecting the company’s financial position and operations. These statements usually include the balance sheet, income statement, cash flow statement, and statement of changes in equity.

4. Tax Return Forms
Tax return forms are crucial documents that companies must submit annually to report their tax situation to the Singaporean government. They typically include income tax return forms, goods and services tax return forms, and business tax return forms.