How to decide Date of Incorporation
You may need certain degree of courage to start entrepreneur journey. First you need to decide When is the best time to register the company.
We all living in digital world now, and company registration can be done anytime from any part of the world. Just click on www.bizfile.gov.sg
So, you have 100% control on date of incorporation.
What is date of incorporation?
This is the date that a company is successfully registered and is placed on the ACRA records.
Public is not allowed to key in future date and no amendment of date AFTER company registered.
Date stated on certificate of Incorporation is consider date of incorporation.
Related article : What is certifcate of incorporation
Consideration point in decide date of incorporation
Preference financial year end date
All registered company is required to file financial year end report with ACRA.
Financial year end normally is consist of 12 months accounting period .
Incorporated on January 2023 , 1st financial year end date will be 31 December 2023 .
Incorporated on April 2023, 1st fianncial year end date will be March 2024
Question : Can the accounting period less than or more than 12 months ?
Yes. But IRAS will treat it as 3 different year assessment .
IRAS’s sample case as follow :
Company A was incorporated on 1st January 2019.Company A’s first financial year end was set on 31st March 2020 and for subsequent years thereafter, the financial year end will be 31st March.
IRAS point of view :
The 2 financial periods above will be classified into 3 Year Assessment for tax computation as follow :
Question : Why 12 months accounting period is important ?
Eligible newly registered company can enjoy tax exemption for first 3 year assessment .
Click here for more detail
company structure ( subsidiary / Holding company)?
If the newly registered company is subsidiary of another company, is adviseable to have same financial year end with its holding company to have consolidated reporting period .
To have same financial year end with holding company, you must decide date of incorporation carefully.
Type of business activites
If you are catering service provider company, of course incorporation is better to done before festival season .
If invloved with holidays event, incorporation should be done before school holidays season or any public holidays .
Where to check Date of Incorporation
- certificate of incorporation
- business profile
- financial statement
- GST application form
- Corporate tax form / Form C