Annual Filing Audit for Singapore Companies Key Details You Must Not Miss!

How to Properly Handle Annual Filing and Audit for Your Singapore Company - Key Details You Must Know!

Doing business in Singapore, whether as a local entrepreneur or an overseas investor, means facing a mandatory and unavoidable process annual filing and audit. As a country consistently ranked among the best globally for its business environment, Singapore offers an efficient and transparent corporate regulatory system-but it also demands a high level of compliance.

In 2025, with the Accounting and Corporate Regulatory Authority ACRA further tightening its oversight on corporate compliance, getting your annual filing and audit right has become more important than ever.

1. Do You Know the Difference Between Annual Filing and Audit?

Many business owners confuse the terms annual filing and audit. Let’s clarify

Annual Filing Annual Return refers to the mandatory submission of a statutory document to ACRA every year. This includes basic company information, details of directors and shareholders, share capital, and more.

Audit, on the other hand, is an independent examination of a company’s financial statements by a certified auditor, to ensure the accuracy and fairness of the reports.

Under the revised Singapore Companies Act, many small businesses that meet certain criteria are exempt from audit requirements. However, even if your company is audit-exempt, you must still file your Annual Return on time. Failure to do so can result in fines or even the removal of your company from the register.

2. Key Deadlines and Process for Annual Filing

According to ACRA, every registered company must submit its Annual Return within one month after its incorporation anniversary. In addition

The company must hold its Annual General Meeting AGM within 6 months of its financial year-end.

Financial statements must be presented at the AGM.

For example

If your company was incorporated on May 10, 2025, you must complete your annual filing by June 10 every year.

If your financial year ends on December 31, 2025, your AGM and submission of financial statements must be completed by June 30, 2026.

The annual filing process generally includes

1. Holding the Annual General Meeting AGM

2. Preparing and approving financial statements

3. Submitting the Annual Return Form AR1 through your company secretary to ACRA

4. Paying the filing fee - ranging from S$30 to S$60 depending on the company type

3. When Is an Audit Required?

Although many small companies are exempt from audits, certain situations still require one

The company does not meet the definition of a small company

It is a public company

It operates in a regulated industry e.g., finance, insurance

Shareholders pass a resolution requiring an audit

A small company must meet two out of the following three criteria

Annual revenue not exceeding S$10 million

Total assets not exceeding S$10 million

Number of employees not exceeding 50

If your company exceeds these thresholds, you must engage a registered accounting firm to conduct an annual audit.

4. Common Issues and Practical Advice

1. What Happens If I Miss the Annual Filing Deadline?

ACRA will impose late fees and may take legal action against company directors. To avoid this, set calendar reminders or consider hiring a professional corporate secretary to manage the process.

2. How to Prepare Financial Statements?

Financial statements must include

Balance sheet

Income statement Profit and Loss

Cash flow statement

Notes to the financial statements

Companies requiring audits should consult with accountants early to ensure compliance with Singapore Financial Reporting Standards SFRS.

3. Should I Hire a Professional Secretary?

While you can handle annual filing yourself, the process can be complex and strict. Mistakes can lead to compliance issues. Engaging a professional secretary or accounting firm ensures the job is done correctly and efficiently.

5. Recent Policy Changes and Trends

In 2025, ACRA has stepped up enforcement against companies that fail to file on time. According to reports from Lianhe Zaobao, over 2,000 companies were struck off the register in 2025 for late filing.

ACRA has also upgraded its electronic filing system, making the process more efficient while increasing scrutiny on the accuracy of submitted data. At the same time, the Inland Revenue Authority of Singapore IRAS is tightening its checks on the consistency between tax filings and financial data.

This means that annual filing and audit are no longer just formalities-they are essential components of a company’s compliance and governance framework.

6. Conclusion Compliance Is the Foundation of Business Success

In Singapore’s highly regulated and transparent business environment, compliance is not optional-it's essential. While annual filing and audit may seem like administrative tasks, they directly impact your company’s stability, reputation, and long-term success.

For overseas investors especially, understanding and managing these processes is a crucial step toward building a successful presence in Singapore. Plan ahead, prepare your documents in advance, and don’t hesitate to seek professional help when needed.

Only with a solid foundation can your business thrive in a competitive market-stronger and more sustainably.