What You Need to Know About Singapore Company Annual Audit A Complete Guide to Prepare and Understand the Process!

Navigating the Singapore Company Annual Review Are You Ready?

For businesses registered and operating in Singapore, the annual company review is a statutory requirement and a crucial component of maintaining corporate compliance. However, many business owners still harbor misconceptions or neglect key aspects of the process-sometimes leading to unnecessary legal risks. This article provides a comprehensive overview of Singapore’s company annual review process, incorporating recent developments, to help you understand the essentials and prepare effectively.

1. What is the Company Annual Review and Why Is It Important?

The Annual Return Filing is a mandatory process under the Companies Act, requiring all registered companies in Singapore to submit an Annual Return and relevant financial reports to the Accounting and Corporate Regulatory Authority ACRA each year.

The core elements of the annual review include

Updating information on directors and shareholders

Submitting audited or reviewed financial statements

Confirming the company’s operational status

This is not only a legal obligation but also a vital step in maintaining your company’s credibility. Failure to file on time may result in penalties, forced deregistration, or being listed as non-compliant. Additionally, business partners often check a company’s filing history via ACRA to assess its reliability and compliance status.

2. Overview of the Annual Review Process From Preparation to Submission

a. Hold the Annual General Meeting AGM

By law, a company must hold its Annual General Meeting AGM within six months after the end of its financial year, to present financial results and operational updates to shareholders.

While private limited companies are no longer required to hold an AGM starting in 2025 if certain conditions are met, they still must ensure that financial statements are properly prepared and disclosed in accordance with regulatory standards.

b. Prepare Financial Statements

Companies must prepare financial statements in line with the Singapore Financial Reporting Standards SFRS, including

Balance sheet

Income statement

Cash flow statement

Notes to financial statements

Small companies that qualify for audit exemption may submit unaudited financial summaries, but they must still meet disclosure requirements.

c. File the Annual Return with ACRA

The Annual Return must be submitted via ACRA’s BizFile+ system, together with

A director’s declaration

Summary of financial statements

The filing deadline is either

30 days after the AGM, or

7 months after the end of the financial year-whichever comes first.

d. Pay the Annual Review Fees

Fees vary depending on the company type and submission timeline. For private limited companies, the average cost is around SGD 300. Late submissions incur additional fees and possible penalties for company directors.

3. Common Misconceptions and Compliance Recommendations

Despite the clarity of the rules, many business owners fall into common traps

Misconception No business means no filing required.

Even dormant companies must file a zero return or declare dormancy.

Misconception Filing deadlines are flexible.

Missing deadlines results in penalties and compliance issues.

Misconception Anyone can prepare financial statements.

Improperly prepared financial statements may lead to regulatory rejection or misrepresentation.

To avoid these issues, companies should

Start preparations early

Allocate sufficient time for meetings and document preparation

Engage professional service providers to ensure accuracy and compliance

4. Recent Trends Stricter Enforcement of Annual Review Compliance

In recent years, Singapore has tightened its enforcement of corporate compliance. According to ACRA’s 2025 annual report, over 2,000 companies were listed as non-compliant due to late filings, and approximately 300 companies were forcibly deregistered.

ACRA has also intensified its scrutiny of financial reports, uncovering cases of revenue overstatement and liability concealment, with responsible individuals referred to the Commercial Affairs Department for investigation.

This trend underscores Singapore’s commitment to enhancing transparency and trust in its business environment. Companies must therefore ensure that all submitted information is accurate, complete, and timely.

5. How to Complete the Annual Review Efficiently

To streamline the annual review process, businesses can adopt the following strategies

Create a Review Timeline Plan each step in advance to meet deadlines.

Engage Professional Services Work with accountants or corporate secretaries to reduce errors.

Leverage Digital Tools Use ACRA’s online platforms and internal management systems for faster processing.

Train Management Regularly Ensure company leaders understand their compliance obligations to avoid unintentional violations.

6. Conclusion

The Singapore company annual review is more than just a legal formality-it is the foundation of ongoing compliance and corporate integrity. As regulatory scrutiny intensifies, businesses must pay close attention to every detail of the review process to ensure timely and accurate submissions.

Only with thorough preparation and a clear understanding of your obligations can your company avoid risks and move forward with confidence.