Singapore’s structured business environment demands strict compliance. Small companies often face fines due to avoidable mistakes. Understanding these pitfalls and taking preventive steps can keep your business safe. Below are the key issues and solutions.

Don’t Miss Filing Deadlines

One of the biggest errors is missing ACRA annual returns or IRAS tax filing deadlines. These are mandatory, and delays result in penalties.

Annual returns are due within seven months of the financial year-end. Tax returns must be filed by November. Persistent misses can lead to legal trouble. Track deadlines with a calendar or use corporate secretarial services for timely filings.

Appoint a Qualified 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 using someone unqualified can lead to fines. Secretarial services can handle this if your team lacks resources.

Report Changes to ACRA

Changes like new directors, address updates, or share issuances must be reported to ACRA, usually within 14 days. Failing to notify risks fines or director liability if records don’t match reality.

Inform your secretary or service provider immediately after changes to maintain compliance.

Maintain Accurate Records

Companies must keep records, including shareholder and director registers, meeting minutes, and resolutions. Many startups neglect this, thinking it’s not urgent. Missing records can complicate audits or funding, and ACRA can issue penalties.

Designate someone to manage records or rely on corporate secretarial services for proper organization.

Understand AGM Obligations

Private companies can avoid Annual General Meetings if they send financial statements to shareholders within five months of the financial year-end. If this doesn’t happen, an AGM is required. Misjudging this can lead to compliance issues.

Check your AGM requirements with your secretary each year to avoid errors.

File Taxes, Even Without Profit

A common mistake is assuming no tax filing is needed without profit. All companies, even dormant ones, must file annual returns with IRAS. Skipping this risks fines or deregistration.

Consult an accountant or corporate secretarial services to ensure timely filings, including for zero-income returns.

Keep a Valid Address

Your company needs a Singapore address, accessible three hours daily on business days. An unsuitable address or failure to update it can lead to missed notices and fines.

Corporate secretarial services often provide compliant registered address options for businesses without a physical office.

Avoid DIY Compliance Mistakes

Handling compliance yourself may save costs initially, but errors like wrong filings or missed deadlines are common without expertise. Correcting these can be costly.

Secretarial services ensure compliance is handled correctly, minimizing risks.

Compliance Protects Your Business

Singapore’s rules are straightforward but demand attention. Fines often result from minor oversights. Review your filings and records regularly, and consider corporate secretarial services for support.

Stay proactive to avoid penalties and keep your business on solid ground.