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What is Annual Return?

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Filing an annual return is a legal obligation for Singapore businesses under the Companies Act. This yearly submission to the Accounting and Corporate Regulatory Authority (ACRA) offers an official update on your company’s financial standing and corporate structure, which is essential for maintaining transparency and compliance in Singapore’s business landscape. In this comprehensive guide, we will explore Singapore’s annual return. This electronic form contains important particulars of the company, such as the names of the directors, secretary, shareholders, and the date of the financial statement up to which it is made. We will also guide you through the essentials of annual return filing requirements, clarify the differences between annual return types and explain why staying compliant is especially crucial for startups and small and medium-sized enterprises (SMEs).

What Does an Annual Return Document Include?

Filing an annual return document is part of the business journey. The purpose of an annual return is to provide accurate, up-to-date information, such as the company directors, shareholders and financial statements, to the relevant authorities. It provides critical information that helps the company’s stakeholders make informed decisions. But if you are unfamiliar with the administrative process, you may wonder: What does it contain? Typically, it includes the following: Company details
  • The company type
  • Registered office address
  • Particulars of the company officers
  • Updated details of registered charges
Should there be any changes to your company’s primary and secondary business activities, it’s crucial to inform ACRA. Company’s share details
  • Number of shares held – the total number of shares held by each shareholder in the company
  • Issue share capital – the total value of shares that the company sold to shareholders
  • Paid-up share capital – the actual funds received by the company from members in exchange for shares
Financial statements
  • Financial statements
  • Balance Sheet
  • Income statement
  • Cashflow statement
Since 2014, all registered companies have been required to file their financial statements in XBRL format, an XML-based format. However, exemptions apply to certain entities, such as foreign companies, companies limited by guarantee and solvent-exempt private companies.

Annual Return Filing in Singapore – Guide

Whether you are a foreign entrepreneur expanding your business in Singapore or a new startup founder, annual return filing might be a new territory for you. Who’s responsible for it? What does the process involve? Don’t worry, navigating regulatory compliance doesn’t have to be overwhelming. To help you get started, here’s a clear overview of how to do an annual return in Singapore and what you need to keep in mind:

Who Should File?

Under the Companies Act, all companies incorporated in Singapore are required to file the Annual Returns with ACRA to ensure the company’s information on ACRA’s register is up to date. This also includes submitting the date of their annual general meeting and the company’s financial statements.

How to File Annual Return with ACRA

To file your annual return with ACRA, you will need to do so via BizFile, ACRA’s online portal, and file the following documents: Step 1: Gather your company information Step 2: Prepare financial statements in XBRL format Step 3: Hold an annual general meeting and record the date Step 4: Log in to BizFile with Corppass, a digital identity system for businesses and other entities to transact with Singapore’s government agencies online Step 5: Fill in the required information accurately and submit your filing. Ensure your company officers review the submission beforehand.

Using BizFile portal in Singapore

BizFile portal is a digital platform managed by ACRA. Serves as a one-stop solution for businesses and individuals in Singapore, the portal facilitates the filing of annual returns, updates to company information, and company incorporation. It allows users to access information about businesses.

Role of Corporate Secretary or Service Provider

Behind every well-run company is a corporate secretary who oversees compliance tasks and ensures that all obligations are fulfilled. From filing annual returns and managing statutory registers to preparing for Annual General Meetings (AGMs) and handling officer appointments or resignations, their role plays a crucial part in the smooth operation of a business. Think of them as the backbone of your company’s compliance function – keeping you aligned with the ACRA’s requirements and shielding you from hefty fines and penalties. Corporate service providers serve a similar purpose. Armed with a deep understanding of Singapore’s regulatory frameworks, they often provide experienced corporate secretaries who manage the full range of compliance duties. Furthermore, corporate service providers offer an ideal alternative for foreign entities that lack a corporate secretary who is a local resident. Since the BizFile portal requires a corporate secretary to log in using Corppass, which is only available to Singapore citizens, engaging a corporate service provider will be a suitable solution.

Why Compliance with Annual Return Matters for Startups and SMEs

Given the amount of paperwork and processes involved, why is compliance with annual return requirements so crucial, particularly for startups and SMEs? Firstly, startups and SMEs must comply with annual return requirements, as this ensures they are in legal compliance. Secondly, it demonstrates reliability to stakeholders and facilitates fundraising by showcasing a commitment to transparency and good corporate governance.

Maintaining ACRA Compliance

For startups and SMEs, staying compliant with ACRA is non-negotiable. This means businesses must stay up-to-date with their obligations and requirements. This includes filing annual returns within 7 months of your financial year-end, keeping accurate financial records, and holding an annual general meeting. ACRA takes these compliance requirements seriously. Failing to meet requirements may lead to enforcement actions and substantial penalties, which can damage your company’s credibility and erode trust among shareholders.

Explore Lanturn’s Corporate Secretarial Services

Navigating Singapore’s regulatory requirements can feel overwhelming, but don’t let it hinder you from starting or scaling your business in Singapore. At Lanturn, we provide comprehensive corporate secretarial services, encompassing the filing of annual returns, the preparation of financial reports, and the maintenance of statutory registers. Our experienced team of experts ensures that your compliance is seamless and on time, allowing you to focus on growing your business. Speak to us to find out more about our services!

FAQs about Annual Returns in Singapore

Most companies in Singapore are required to file their annual return 7 months after the end of their financial year. However, the annual return filing date varies for different types of companies. Listed companies will have 5 months, while foreign companies must file within 60 days after their head office’s AGM meeting. Staying on top of these deadlines is crucial to avoiding penalties and maintaining compliance.

Yes, you can file an annual return for your company yourself if you are the appointed company officer. However, some companies choose to engage a corporate service provider for ease and accuracy. For foreign companies, you will need to engage a corporate service provider as Corppass is required to file the annual return. 

If you miss the annual return filing deadline, you may incur penalties. That is why it’s crucial to stay on top of the filing deadline.

No, they are not the same. Annual filings are made with ACRA, which updates the company details register and provides financial statements. A tax return, on the other hand, refers to the income tax filing process conducted with the Inland Revenue Authority of Singapore.

Yes, all registered companies, including ‘dormant companies’, are required to file an annual return if their company’s status is live. This requirement stands even if the company is exempt from filing an income tax return.

Yes, if companies are unable to hold an AGM meeting before the due date or require additional time to complete the audit, they can apply for an Extension of Time (EOT) of up to 60 days, which can be filed either by the company’s appointed officer or a corporate service provider, such as Lanturn. At Lanturn, we handle this application process on your behalf to ensure you remain compliant.

 
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