GSL / Foreign Companies Audit / Audit Singapore

Singapore company audit, financial statements, accounting, consulting in Singapore

Audits in Singapore are governed by strict statutory requirements and are mandatory for most companies, except for small, dormant and exempt private companies. Each entity must annually file an Annual Return and its financial statements with the Accounting and Corporate Regulatory Authority (ACRA), and submit a tax return to the Inland Revenue Authority of Singapore (IRAS). Financial statements are prepared in accordance with Singapore Financial Reporting Standards (SFRS). Our audit services include preparation of financial statements, coordination and conduct of statutory audits, filing of tax returns, and advisory support on compliance with Singaporean law and CFC reporting requirements.

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Service packages Legislation Tax System Audit Services
Preparation and submission of dormant accounts (for a dormant company)
1 650 EUR
Preparation and submission of dormant accounts (for a dormant company)

(Min – EUR 2 090)

100-400 EUR per hour
Company's audit by a Singapore auditor

(Min – 10 000 EUR)

100-400 EUR per hour
Consulting services and support during tax audits
100-400 EUR per hour
Liquidation of a company
from 1 500 EUR

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General requirements

Each Singaporean company must comply with the following requirements of the legislation:

file an annual return(AR) and annual financial statements with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore;

hold an annual general meeting of shareholders;

file an annual tax return with the Inland Revenue Authority of Singapore (IRAS).

Since not all jurisdictions have an analog to annual return, we consider it necessary to clarify this term. Annual return (AR) is a short report on the current structure of the company that is prepared by the company’s secretary annually. Normally, it includes:

  • Identification data (date of incorporation, registered address);
  • information on directors and their resignations;
  • information on secretaries and their resignations;
  • information on the authorized capital, par value of shares, number of issued shares;
  • information on shareholders and transfer of shares.

In Singapore, an annual return shall be signed by director and secretary within 1 month of the date of the annual general meeting. The return contains data of the company’s activity and structure; the company’s financial statements shall be filed along with the annual return.

Directors must present at annual general meeting financial statements prepared in accordance with the Singapore Financial Reporting Standards and the Singapore Financial Reporting Standards for SME issued by the Accounting Standards Council.

Financial statements must give truthful and objective representation of the company’s financial position and results of its activity. Financial statements consist of:

  1. statement of comprehensive income;
  2. statement of financial position;
  3. statement of changes in equity;
  4. statement of cash flows;
  5. notes containing the main principles of the accounting policy and other explanatory information.

The following types of legal entities must file financial statements:

  • sole proprietorship;
  • partnership;
  • limited liability partnership;
  • limited partnership;
  • private limited company;
  • exempt private company;
  • public company limited by shares;
  • public company limited by guarantee;
  • branch;
  • representative office.

A dormant company can be exempt from filing financial statements. Dormant company is a company that does not conduct activity and whose total assets do not exceed 500 000 SGD (Singaporean dollars) and it is not a listed company or a subsidiary of a listed company.

Transactions that do not affect the dormant status of a company:

  • appointment of company secretary;
  • appointment of auditor;
  • maintenance of registered office;
  • keeping registers and books;
  • payment of duties to the Registrar or any fine or penalty to the Accounting and Corporate Regulatory Authority (ACRA) of Singapore;
  • purchase of the company’s shares by the subscriber to the Articles of Association (company’s shareholder) in accordance with the obligation stated in the Articles of Association.

IRAS can exempt a company from filing a tax return if:

  • the company’s estimated chargeable income (ECI) equals zero;
  • the company’s annual income does not exceed 1 000 000 SGD.

Audit of accounts

The following companies can be exempt from obligatory audit:

  • dormant company;
  • exempt private company;
  • small company

Criteria of a dormant company are described above.

A private limited company can acquire the exempt status. Such a company is exempt from obligatory audit and from filing audited financial statements with ACRA. An exempt company, however, shall file an annual return and tax return with IRAS. The company shall be exempt when two conditions are met:

  1. the company does not have more than 20 shareholders; all shareholders are individuals;
  2. the company’s turnover does not exceed 5 000 000 SGD.

Companies that comply with any two of the below requirements during the last two financial years are considered small companies:

  • total annual income does not exceed 10 000 000 SGD;
  • total assets do not exceed 10 000 000 SGD;
  • it has 50 employees at most.

Time frame for preparation and submission of financial statements

In accordance with section 175 of the Companies Act, companies must hold their first annual general meeting of shareholders:

  • for listed companies: within 4 months after the date of the end of the reporting period;
  • for other companies: within 6 months.

Financial reporting date can be changed once in 5 years.

As mentioned before, each Singaporean company must file an annual return and financial statements with ACRA within 1 month after annual general meeting of shareholders. Information on the company’s officers, registered address and auditors must be included in the annual return.

If a company receives income exceeding 500 000 SGD, it must also provide its account statements enclosed with the tax return.

Each Singaporean company must file an annual tax return with IRAS before 30 November. Profit for the financial year that ended in the previous year will be the basis for filing a tax return in the current year. Moreover, companies are also required to file a statement of estimated chargeable income (ECI) 3 months before the end of the reporting period.

A VAT report shall be filed quarterly.

Liability for late submission of accounts

For failure to timely file financial statements with the Accounting and Corporate Regulatory Authority of Singapore (ACRA), the company will be subject to a fine of:

In the case of late submission of financial statements to ACRA, the company will be imposed with a fine of:

  • 300 SGD if accounts are filed within 3 months after the date set for filing, or
  • 600 SGD if accounts are filed within more than 3 months after the date set for filing.

In the case of late tax reporting IRAS can issue a notice containing assessment of the tax that the company must pay within 1 month, and then, in the case of failure to fulfil obligations, summon to court those responsible for management of the company (including directors).

If a company does not file accounts with IRAS within two years, by court decision the company can be imposed with a penalty:

  • 2 times the amount of the tax charged; and
  • a fine not exceeding 5 000 SGD.

Failure to pay this penalty may result in imprisonment for a term of up to 6 months.

Consolidated financial statements

If a company is part of a group, the company will be assessed on a consolidated basis.

According to the provisions of FRS-110 (Consolidated Financial Statements SB-FRS 110), if a company controls one or more companies, consolidated financial statements must be prepared for the group of companies.

A group company will be exempt from annual audit of its accounts if the holding company and all subsidiaries meet the criteria for a small group, i.e. they meet at least two of the below conditions during the last two financial years:

  • consolidated income must not exceed 10 000 000 SGD;
  • consolidated total assets must not exceed 10 000 000 SGD;
  • total number of employees of the group must not exceed 50.

Frequency Asked Questions

Is audit mandatory in Singapore?
Companies in Singapore are required to have their financial statements audited in certain circumstances. Exempt private companies (EPCs) with annual turnover not exceeding SGD 5,000,000, small companies meeting the small‑entity criteria (annual revenue up to SGD 10,000,000, total assets up to SGD 10,000,000 and no more than 50 employees), and dormant companies with assets up to SGD 500,000 are exempt from mandatory audit. All other companies, including foreign companies with a branch in Singapore, must have their financial statements audited annually by an independent auditor registered with the Accounting and Corporate Regulatory Authority (ACRA).
What is the purpose of audit Singapore?
The purpose of an audit in Singapore is to provide an independent and objective assessment of a company's financial statements and accounting practices. It aims to provide reasonable assurance that the financial statements are free from material misstatements and are presented fairly in accordance with the applicable accounting standards. This helps to enhance the credibility and reliability of the financial information provided by the company to its stakeholders, including shareholders, creditors, and regulators. The audit also helps to identify areas where the company's internal controls and risk management practices could be improved.
What is the audit limit for small companies in Singapore?
In Singapore, small companies are exempt from the statutory audit requirement if they meet the small‑company criteria: annual revenue not exceeding SGD 10 million, total assets not exceeding SGD 10 million, and no more than 50 employees. Exempt Private Companies (EPCs) with annual turnover up to SGD 5 million and no more than 20 shareholders may also qualify for audit exemption. Where a company is part of a group, the audit exemption applies only if the entire group meets the small‑company thresholds.
What is the minimum amount for audit?
There is no single monetary threshold that automatically triggers a statutory audit in Singapore; the requirement depends on a company’s status. Exempt Private Companies (EPCs) with annual turnover up to SGD 5 million are not required to have an audit. Other small companies with annual revenue up to SGD 10 million may also qualify for audit exemption if they meet the full small‑company criteria (including limits on total assets and employee headcount). Regardless of exemption, companies must still prepare financial statements and file them with the Accounting and Corporate Regulatory Authority (ACRA).
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