Singapore Company Annual Review Guide These Key Points You Must Know!

Understanding Singapore Company Annual Review Requirements What Do You Know? These Details Should Not Be Missed!

In recent years, as more Chinese companies have turned their attention to the Southeast Asian market, Singapore, as a key business hub in the Asia-Pacific region, has attracted a large number of foreign-invested enterprises to set up branches or register companies. However, for many new business owners, Singapore's company annual review system may be unfamiliar, and neglecting this process can lead to serious legal and financial consequences.

According to the regulations of the Accounting and Corporate Regulatory Authority ACRA of Singapore, all companies registered in Singapore must submit an Annual Return and financial statements annually. This is an important step to ensure the company operates in compliance and maintains a good business reputation.

Basic Requirements for Annual Review

Since 2025, Singapore has further optimized its company annual review system to simplify the process and reduce the burden on businesses. According to ACRA's latest policy, all private limited companies are required to submit their first set of financial statements within 18 months of incorporation and complete the annual review on time every year thereafter.

The annual review mainly includes the following

1. Annual Return Includes company information, shareholder details, and director information.

2. Financial Statements Usually prepared by a certified public accountant CPA or auditor, including balance sheets, income statements, and cash flow statements.

3. Income Tax Filing Although not part of the annual review, it is usually done in conjunction with the annual review to ensure tax payments comply with the law.

Annual Review Schedule and Deadline

The annual review cycle for Singapore companies is based on the company's registration date. For example, if a company was incorporated on June 1, 2025, its first set of financial statements should be submitted by December 31, 2025. After that, the annual review should be completed before the same date in the following year.

It is worth noting that ACRA issued a notice at the beginning of 2025, reminding companies to pay attention to the annual review deadlines to avoid fines or even license revocation due to late submission. According to The Straits Times, over 5,000 Singapore companies were warned or penalized in 2025 for failing to submit their annual reviews on time.

Annual Review Costs and Cost Control

The cost of annual review varies depending on the size and complexity of the company. Generally, the cost for small businesses ranges from 500 to 1,500 Singapore dollars, while larger companies may need to pay higher fees. If a company hires a professional accounting firm for audit services, the cost may increase further.

To reduce costs, some companies choose to use automated accounting software such as Xero or QuickBooks to improve financial processing efficiency. Meanwhile, some accounting firms also offer one-stop annual review services, helping companies save time and costs while ensuring compliance.

Consequences of Late Annual Review

Although many business owners may consider the annual review as just a formality, in reality, failing to submit it on time can lead to serious consequences

Fine ACRA imposes heavy fines on companies that submit annual reviews late, with the maximum fine reaching 1,000 Singapore dollars.

Company Status Issues Companies that fail to submit annual reviews on time will be listed as inactive, affecting their credit rating.

Business Operations Restricted In certain cases, non-compliant companies may be forced into liquidation or have their licenses revoked.

In April 2025, local media in Singapore reported that a local technology company was forcibly deregistered by ACRA due to two consecutive years of failure to submit annual reviews, resulting in significant asset losses. This case once again served as a warning.

How to Complete the Annual Review Efficiently?

To ensure a smooth annual review process, it is recommended that business owners plan ahead and take the following measures

1. Establish a dedicated finance team or hire a professional agent Especially for cross-border companies, professional local agents can provide more accurate services.

2. Use digital tools Leverage accounting software and online platforms to improve data processing efficiency.

3. Stay updated on policy changes ACRA regularly updates regulations, and companies should promptly obtain the latest information.

Some local consulting firms in Singapore also offer annual review reminder services, sending emails or text messages to notify business owners of the annual review deadlines, reducing the risk of human error.

Summary

Although Singapore's company annual review system may seem complicated, it is the foundation for ensuring long-term stable development of the business. With the continuous changes in the international business environment, compliance has become a key factor for companies to survive in the market. Whether local or foreign companies, they should pay attention to the annual review process and avoid losing more due to minor oversights.

For companies planning to operate in Singapore, understanding and complying with annual review regulations is not only a legal obligation but also an important measure to enhance corporate image and competitiveness. Only under the premise of legal and compliant operations can companies truly achieve sustainable development.

In conclusion, although the annual review may seem like a small matter, its impact is far-reaching. I hope every entrepreneur will take this aspect seriously and ensure that their company steadily progresses in this vibrant market of Singapore.