The distinction of being one of the least complex jurisdictions nations in the Asian continent goes to Singapore. The country has earned quite a lot of reputation as a business-friendly nation. But still, if you run a company in Singapore, you need to follow certain rules and regulations that are set up by the nation’s authorities.
Compliance Requirements in Singapore
Let us see some of the compliance requirements you need to abide by if you are incorporating a new company in Singapore:
- Once you incorporate a company, you need to appoint a company secretary within six months. The person needs to be a permanent resident, a Singapore citizen, or an employment pass holder.
- You also need to have a local registered address for your company and this address should be accessible to all during the normal office hours.
- The Companies Act of the country dictates that any company that is registered here needs to have minimum one director who resides in the country itself. It is also the responsibility of this director to see that Annual Return of the company is filed with ACRA (Accounting and Corporate Regulatory Authority) after the annual general meeting is held with the presentation of Financial Statements. The director is also to ensure that the tax return is filed annually in due course with IRAS (Inland Revenue Authority of Singapore). The directors cannot be less than 18 years of age, bankrupt or involved in any malpractice charges.
- Within 3 months of incorporation, the law requires you to appoint an auditor. However, if your company meets any two out of the given conditions in the last 2 FYEs (Financial Year End), then you get an audit exemption according to the clause added from 1st July 2015. The conditions are:
- If the total yearly revenue of the company is less than 10 million Singapore dollars
- The total number of employees in the company is not more than 50
- The total assets are not more than 10 million Singapore dollars
- Those companies that have an actual or projected annual revenue of more than S$1 million needs to be registered for GST (Goods and Services Tax), which is currently charged at the rate of 7%.
- All the relevant accounting records that contain details of the financial position and transactions have to be kept for a minimum of five years after the related FYE.
- If you are employing the non-natives, then they should have a valid working pass.
Being compliant in Singapore is must for the smooth and hassle-free running of the business in the country.