Frequently Asked Questions

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What are the accounting responsibilities of a business operating in Singapore?

All businesses are required to maintain proper books of accounts for at least 5 years:

  • for audit purposes (if applicable); and

  • to support their income tax returns,

under the provisions of the Companies Act 1967 and the Income Tax Act 1947 respectively.

Do all companies incorporated in Singapore require annual statutory audits?

Directors of companies incorporated in Singapore are required to appoint auditors within 3 months of incorporation, except for companies that are exempt from annual statutory audits.

Companies that are exempt from the audit requirements in Singapore include:

  • Dormant companies; and
  • “Small companies” which are also part of a “small group”.

A company is a “small company” for a financial year if:

  • It is a private company throughout the financial year; and
  • It satisfies any two of the following criteria for each of the two consecutive financial years immediately preceding the financial year:
    • the revenue for each financial year does not exceed S$10 million;
    • the value of the company’s total assets at the end of each financial year does not exceed S$10 million; and / or
    • it has at the end of each financial year not more than 50 employees.

A group is a small group for a financial year if the group satisfies any two of the following criteria for each of the two consecutive financial years immediately preceding the financial year:

  • the consolidated revenue of the group for each financial year does not exceed S$10 million;
  • the value of the consolidated total assets of the group at the end of each financial year does not exceed S$10 million; and / or
  • the group has at the end of each financial year an aggregate number of employees of not more than 50.

    There is no statutory audit requirement for the financial statements of representative offices, partnerships, sole proprietorships and limited liability partnerships.

    Does a Singapore registered branch require annual statutory audits?

    A Singapore registered branch of a foreign company is required to have its financial statements audited annually unless it is:

    • dormant during the financial year, or

    • has successfully applied for and obtained from the Accounting and Corporate Regulatory Authority of Singapore a waiver from the need to have its financial statements audited for the relevant financial year by satisfying the conditions stipulated in subsection 12 of Section 373 of the Companies Act 1967.