Frequently Asked Questions
Private Limited companies are the most common form of business entities registered here in Singapore. Not only are they a separate legal entity whereby shareholders are not held liable for company’s debts beyond the amount of share capital they have contributed, a properly structured one also benefits from a very tax efficient corporate body. To register your company in Singapore as a Private limited company, you would have to first seek approval for your company name and register your company by providing ACRA with the necessary company incorporation documents. Once both your company name and company registration has been approved by ACRA, you can then open your corporate bank account, apply for business licenses, and register for GST, fully incorporating your new company in Singapore.
For financial year beginning on or after 1 July 2015, a company qualifies as a small company and is exempted from audit if it meets at least 2 out of 3 following quantitative criteria: 1) total annual revenue is not more than S$ 10mil; 2) total assets are not more than S$ 10mil; 3) number of employees is not more than 50. For a company which is part of a group, to qualifies for audit exemption: (a) the company must qualifies a small company; AND (b) the group must be small group. A group qualifies as a small group if it meets 2 out of 3 quantitative criteria above on a consolidated basis.
There is no implication from audit perspective, except for that prior year figures will become not comparable. From tax perspective, the corporate tax will be computed based on 2 Years of Assessment.
A Singapore registered company must keep accounting records as well as any other document that can explain the company’s business transactions and ﬁnancial position for a period of at least five years after the completion of the transactions or of operations to which they relate.
A dormant company must submit Form C-S unless it has been granted waiver for submission of tax return by IRAS.