What are the Legal Requirements When You Form a Singapore Company?
Forming a Singapore company offers several advantages particularly in terms of limited liability
, bankruptcy protection, and tax benefits and exemptions. However, the best advantage that you get when you
form a Singapore company is that it is treated as a separate legal entity apart form its stockholders. Like a real person, an incorpoated Singapore Company can acquire or sell a property under its name, file a lawsuit using its name and can be named in a case, and continue its existence regardless of who are the shareholders and board of directors. These advantages, have encourage many local and foreign entrepreneurs to incorporate their companies in Singapore.
Meanwhile, corporations are required to meet a wide array of formalities and legalities stated by the Singapore Companies Act in order to prevent unscrupulous dealings, illegal trading, and tax evasion.
While there are several legalities which must be met, the most important is the annual filing requirements which must be submitted to the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS).
These are the basic legal requirements for a Singapore Corporation:
* Appointment of a company secretary
Within six months of incorporating a company in Singapore, shareholders should appoint a secretary who must be a local resident of Singapore and has a knowledge in handling all the compliance matters under the corporate law.
* Annual general meeting
This meeting, which is a required corporate formality, should be held within 18 months of incorporating a company. The succeeding meeting will then be held once every year but not more than 15 months apart.
* Directors' report
This document must consist the following: the shareholders and directors' interests and accounts; unaudited financial statements such as the balance sheet and income statement; and documents revealing the accounting policies of a corporation.
* Annual returns
The annual returns, or the financial accounts of a company, are filed to ACRA one month after its annual general meeting.
* Financial year-end documents
This will be the basis for the deadline for the submission of financial statements and accounting requirements.
* Registration number
A corporation will receive its business registration number to ACRA which must be present on its letterheads, invoices, billings, and other documents used for communication purposes.
* Estimated chargeable income (ECI)
This is an estimate of a company's chargeable income for the "year of assessment" and includes the following information: estimated profits, financial year-end, and estimated revenue.
* Tax returns
This should include the tax computation, director's report, and Form C which must be submitted earlier than 31st of October.
* Form C
This requirement must be submitted every June after a fiscal year but may be extended until December if a corporation has already submitted ECI within three months after the end of the accounting period.
* Audited or unaudited accounts
IRAS allows private limited company with less than $S5 million of turnover to file unaudited accounts. But for the branch offices of foreign companies, they are required to submit even the parent's audited financial statement.
What are the Legal Requirements When You Form a Singapore Company?
By: JohnMedia
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