How Much Does Annual Audit Cost for a Singapore Company? Must-Know Details Inside!

How High Are the Annual Audit Fees for Singapore Companies? Insider Information You Must Know!

In recent years, as the global business environment continues to evolve, more and more companies have chosen to register in Singapore, especially small and medium-sized enterprises SMEs and entrepreneurs from across Asia. Singapore has attracted a large number of foreign investors with its stable economy, efficient services, and favorable tax policies.

However, for those who have already registered a company in Singapore-or are planning to-annual audit fees are an unavoidable topic. So, just how much do these fees really cost? Are they as low as a few hundred Singapore dollars, as some agencies claim, or is there more to the story? Let’s cut through the noise and reveal the truth behind annual audit costs in Singapore.

1. What Exactly Is an Annual Audit?

Before we talk about the cost, let’s clarify what an annual audit actually involves.

In Singapore, annual filing doesn’t refer to a traditional financial audit. Rather, it’s a comprehensive annual compliance process that includes the following

1. Submission of Financial Statements

2. Submission of a Statement by Directors

3. Filing of the Annual Return

4. Filing of Estimated Chargeable Income ECI with the Inland Revenue Authority of Singapore IRAS

5. Holding of the Annual General Meeting AGM and keeping meeting minutes

Whether a company needs an audit depends on its size. According to the Accounting and Corporate Regulatory Authority ACRA, a company is exempt from audit if it meets at least two of the following conditions

Annual revenue does not exceed S$10 million

Total assets do not exceed S$10 million

Number of employees does not exceed 50

This means many SMEs are not required to undergo an audit. However, they still need to complete the full annual filing process.

2. What Makes Up the Annual Audit Cost?

The total annual audit cost typically includes the following components

1. Accounting Services - Includes preparation of financial statements and tax filings

2. Company Secretary Services - Covers organizing AGMs, filing annual returns, etc.

3. Audit Fees if applicable

4. Filing Fees - For example, ACRA submission fees

For a typical SME that does not require an audit, the total annual filing cost generally ranges from S$1,000 to S$3,000. If an audit is required, the cost can jump to S$4,000-S$8,000 or more.

It’s worth noting that some agencies advertise annual filing services as low as S$300, but this is often a marketing tactic. These low-cost services usually cover only the most basic filings, excluding key services like financial statement preparation or tax filing. Additional costs are often added later when companies request more comprehensive support.

3. Why Are Annual Audit Fees Rising?

Several factors have contributed to the rising cost of annual filings in Singapore

1. Rising Labor Costs - Salaries for local accountants and company secretaries have been increasing, pushing up service fees.

2. Stricter Compliance Requirements - ACRA and IRAS have tightened compliance rules, especially around financial reporting and tax accuracy, increasing the workload and risk for service providers.

3. Market Concentration - With Singapore becoming a popular business hub, more agencies and accounting firms have entered the market. However, the quality of service varies. Large firms, in particular, charge higher fees to maintain their brand reputation.

4. Growing Demand for Value-Added Services - Many businesses now expect more than just basic compliance-such as tax planning, corporate restructuring, and compliance training-which naturally increases the overall cost.

4. How Can You Control Annual Audit Costs?

Annual audit is a necessary expense, but there are ways to reduce the burden

1. Prepare Financial Records in Advance - By maintaining organized financial records, you can reduce the workload for your accountant, lowering service fees.

2. Choose the Right Service Provider - Don’t just go for the lowest price. Look for a provider with strong credentials and good reviews. Compare a few options to find the best value.

3. Optimize Company Structure - A well-structured company, such as one with a holding company or subsidiaries, can help reduce compliance and tax costs.

4. Take Advantage of Government Support - Singapore offers various subsidies and tax incentives for SMEs. Make sure to use them to ease your compliance burden.

5. Conclusion

Annual filing is a routine but essential part of running a company in Singapore. Understanding the real components of the cost helps you avoid misleading low-cost offers and make informed decisions.

For businesses operating in Singapore, choosing a reliable and professional service provider is key to long-term success. In this transparent and highly regulated business environment, only companies that maintain compliance and operate sustainably can truly thrive and grow in Singapore’s competitive market.