Singapore is the country with well-established finance and the country is the perfect location for setting up business and commercial planning with Asian countries.
There are some recent changes to the Singapore Company Act and according to the law companies in Singapore must have at least one director who generally resides inside Singapore.
The company should also have at least one secretary who also ordinarily resides inside Singapore. Moreover, the company should have one registered office in Singapore and the company should have at least one shareholder who is either a corporation or an individual.
In order to open a bank account in Singapore, the company must disclose the beneficial owner and most of the private banks in Singapore have very strict prerequisites for full filling minimum balance.
Additionally, the potential client should visit the bank in Singapore personally before opening the bank account for verifying their identity.
For the companies in Singapore, there are annual filing requirements and this requirement is different for private small EPC, normal EPC, dormant EPC, and non EPC.
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The category is subdivided based on annually generated revenue and small EPC companies have annual $5m or less Singaporean dollars.
While these small EPC companies are solvent and they are able to meet their dues then their accounts should not be audited and also their accounts should not be filed.
However, they have to complete an online declaration solvency form. On another hand, while the company is insolvent and not able to meet liabilities then also their accounts should not be audited, but unaudited accounts must be filled.
Normal EPC is the companies whose annual revenue is more than $5m Singaporean dollars. Whatever the company is solvent or not solvent the law applies for normal EPC is same as small EPC companies.
Dormant EPC is the company who does not have any account transaction in concern year and whatever the company is solvent or not the law applies is similar to small EPC and normal EPC.
Following situations does not consider as the transaction for the dormant company.
Non-EPC or Singapore nonexempt private companies are bit different. These are the limited companies those have maximum fifty shareholders. Also if the minister gazettes any company as EPC then they may operate as an exempt private company.
If these types of companies are solvent then their accounts should not be audited, but unaudited account file must be submitted to the authority. While this type of company is insolvent then the same law applies as above.
If any company in Singapore have more than fifty shareholders or the company is limited to a guarantee or the company is listed with the Singapore stock exchange then the company is a Singapore public company.
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For these types of companies, if they are solvent then their accounts should be audited and the audited account record must be submitted with the authority.
Additionally, private companies are required to hold AGM or annual general meeting and submit annual return under the company Act.
The Singapore Company Act does not enforce the companies to maintain a minimum qualification for the person who is preparing the account.
However, this is the director’s responsibility to appoint such individuals with adequate qualifications. For the new private companies, they must hold their first AGM by 18 months after their incorporation.
Then following AGMs should occur every calendar year and the duration of intervals between AGMs should not be more than 18 months. Additionally, annual AGM must be filed within one month after the AGM.
For the companies in Singapore, any company may apply for extension time for AGM or to file the annual return and upon approval; they have to submit the annual return within one month of the new date.
If any company fails to submit its return within time frame then a penalty must apply and summon may issue against the directors of the company.
For dormant companies, they do not have any transaction in the relevant financial year, while they also have to file the annual report. However, the dormant companies have to file unaudited financial account report.
If any dormant company wishes to file the audited report then they must have to submit the audited report with along with auditor’s report.
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For EPC companies in Singapore, they have to file the annual return with ACRAS BIZ file.
EPC companies are exempt from audit requirements and if the company is solvent then they have to file the online declaration of solvency form.
On the contrary, if they not then they have to lodge a financial account with a register.
Note: This article is on Companies in Singapore. If you want to get more information about foreign company registration in Singapore, then you can see another article to our website.