What is the on going Compliance obligation for Pte Ltd Company ?
“Are you sure want to register pte ltd ?
There is list of compliance you need to follow ! Is really difficult to handle company compliance matter, if fail to comply will receive summon court order and penalties. “
Are you having same thought as above?
Do not let above scare you off. Here is the full diagram to remember compliance date.
IRAS and ACRA is 2 major agency all type of company need to report annually.
IRAS : Agency handle tax system in Singapore
ACRA : The Accounting and Corporate Regulatory Authority (ACRA) is the regulator of business registration, financial reporting, public accountants, and corporate service providers.
let take a look what are the basic compliance list :
Annual Return (AR) filing with ACRA
AR filing is a must for all PTE LTD regardless company is dormant of active
Before AR filing, company is required to prepare set of financial report ( audited / unaudited )
Relevant article : Is company exempted from preparation audited report ?
Relevant copy of report will be table at Annual General Meeting (AGM) for shareholder approval.
After AGM conducted, only then Company can proceed to AR filing with ACRA
In Singapore ,most of SME company director and shareholder is the same person. And most of the AGM conducted via “paper meeting “
Estimate changeable Income (ECI)
ECI is refer to the estimate of the total taxable income for your company within the Year of Assessment.
All company required to file ECI for their revenue within 3 months from the FYE date .
Company is exempted from ECI submission if 1 of the following conditions is met :
- The company’s annual revenue is less than S$5 million for the financial year
- the ECI is nil (the company has no profits or is dormant) for the assessment
Company tax submission
All PTE LTD required to declare their tax every November.
Company is taxed at a flat rate of 17% of its chargeable income.
What is Chargeable Income ?
Chargeable income refers to your company’s taxable income (after deducting tax-allowable expenses) for a Year of Assessment (YA).
Dormant company also need to comply ?
IRAS
As long as company is dormant then is exempted to submit tax anf ECI
Click here for application waiver submission of tax
ACRA
Regardless dormancy, every company must submit Annual return in due course.
Additional Note :
” My company is dormant so no need to file anything , worst scenario ACRA close the company for me , so not a problem “
- If you have above same thought, then you are wrong again. ACRA will impose debarment or disqualification director whose had 3 companies closed down by ACRA . (disqualification vs debarment of director)
- As ACRA’s compliance due before IRAS’s, business owner thought report with ACRA is good enough. Please take note that ACRA and IRAS is totally 2 different reporting role, company must comply with BOTH regulation .