Singapore’s business landscape is structured, but compliance errors can lead to fines, especially for small businesses. Many mistakes are preventable with awareness and planning. Below are the most common compliance issues and how to avoid them.
Don’t Skip Filing Deadlines
One major mistake is missing ACRA annual returns or IRAS tax return deadlines. These are mandatory, and delays bring penalties, no matter how small.
Annual returns must be filed within seven months of your financial year-end. Tax returns are due by November. Missing deadlines repeatedly can lead to serious consequences. Set reminders or use corporate secretarial services to stay on top of filings.
Mandatory Company Secretary
Singapore law requires a qualified company secretary within six months of incorporation. This role ensures compliance through filings, resolutions, and record updates.
Not appointing a secretary or assigning the role to someone unqualified can result in fines. Secretarial services can manage this if your team is stretched thin.
Update ACRA on Changes
Changes like new directors, address updates, or share issuances must be reported to ACRA, usually within 14 days. Failing to notify can lead to penalties or issues with director liability.
Inform your secretary or service provider immediately after any change to keep records accurate and compliant.
Keep Records Up to Date
Companies must maintain records, including shareholder and director registers, minutes, and resolutions. Startups often neglect this, assuming it’s a low priority. Missing records can complicate audits or deals, and ACRA can issue fines for breaches.
Designate someone to handle records or outsource to secretarial services for proper management.
Understand AGM Obligations
Private companies can avoid Annual General Meetings if financial statements are sent to shareholders within five months of the financial year-end. If this doesn’t happen, an AGM is required. Misunderstanding this can lead to compliance issues.
Check with your secretary each year to confirm your AGM requirements and avoid errors.
File Taxes, Even Without Profit
A common error is assuming no tax filing is needed without profit. All companies, even dormant ones, must file annual tax returns with IRAS. Skipping this risks penalties or deregistration.
Work with an accountant or corporate secretarial services to ensure proper filings, including for zero-income returns.
Registered Address Compliance
Your company needs a valid Singapore address, accessible three hours daily on business days. An unsuitable address, like an inaccessible home office, or failing to update your address can lead to missed notices and fines.
Corporate secretarial services can provide a compliant registered address for businesses without a physical office.
Risks of Self-Managed Compliance
Some entrepreneurs handle compliance to cut costs, but mistakes like incorrect filings or missed deadlines are common without expertise. Correcting errors can be expensive.
Secretarial services offer a reliable way to manage compliance, minimizing risks and saving time.
Stay Compliant, Avoid Fines
Singapore’s rules are straightforward but demand diligence. Fines often result from minor oversights. Review your compliance processes and consider corporate secretarial services for support.
Proactive steps today can prevent costly fines tomorrow.
