Corporate Structures

Annual return obligations in Singapore: what and when?

3/21/2024 8:00:00 AM
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All companies must file an annual return which demands presenting certain documents. Although the requirements may vary from one jurisdiction to another, in every case this is a mandatory procedure to keep the entity 100% compliant. Those who are interested in business in Asia know why choose Singapore. The next question will be what to do here when it comes to this year’s return obligations. Hence, the editorial team has consulted with our experts to write this article on Singapore requirements.

Annual return for your business in Singapore

Generally, this procedure intends to collect important information about the company. Mostly in every country, each entity is defined by three aspects which must be confirmed and reported to the government on an annual basis. These are: the company status, the directors, and the registered address.

The process in itself is not complicated, and any good corporate agent can fulfill it. The key here is to have a reliable advisor who will help you comply with this requirement timely.

One should not mistake an annual return with a tax return. In essence, the annual return intends to confirm the legality of the entity year by year. This is why the government needs to know whether there are any new key members (like the director), or a new address. Through the annual return, the government keeps a record of the companies that are still active and of those that remain dormant.

Tax return, on the other hand, is much more complex. This requires a complete assessment and calculation of the net income and taxable income which will be estimated according to the company's tax status. 

Every business in Singapore, or in any country, must comply with both procedures although the details, due dates, and implementations may vary. 

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What to do in Singapore: business center with full compliance

Singapore requirements stipulate certain conditions and dates to fulfill corporate obligations according to Singapore law.

The filing of the corporate income (with IRAS) is due within 3 months after the financial year ends while the company AGM must be held within 6 months. 

Furthermore, a business in Singapore must file the annual return with the ACRA within 7 months after the financial year ends and the company tax return with the IRAS the following year after the financial year ends. Failing to comply with these requirements and dates may result in penalties. The actual dates will depend on the financial year the company has been fixed during incorporation. 

Why choose Singapore

Stable Political Environment

Mundo recommends Singapore business center because the country has been able to maintain political stability over the years. This is not a minor detail as it guarantees a certain level of predictability. Clearly, unforeseen events may occur but a country with a safe history is more likely to keep the promise of a reliable future. 

Any business or investment requires planning, and for a plan to work there must be a relative margin of predictable elements at least in a not-so-distant future.

English common law for your business in Asia

If you're wondering why to choose Singapore this fact is not to be overlooked. Being built on a robust legal framework, Singapore law is solid and reliable. A good plus for the country is that it consistently ranks high in international indexes regarding ease of doing business.

Strategic location

Location is key for any corporation, and this is one outstanding advantage of Singapore business center. In the heart of Southeast Asia, Singapore is a true business hub and thanks to good governance it has been able to exploit this advantage. Now it offers a wide range of banking alternatives, premium investment services, and excellent financial opportunities.

Tax advantages within a compliant environment

In a post-offshore world, the best we can aim for is tax benefits within a whitelisted jurisdiction. Luckily Singapore is not considered a tax haven, but it does quite well in the tax sphere.

Investors will find, when choosing a business in Singapore, interesting and relatively low corporate tax rates and several incentives for certain types of activities. All of this is found in a trustworthy environment and highly reputable jurisdiction.

Disclaimer: The requirements, due dates, and advantages described here are only an overview provided as general information. For detailed insights about a business in Singapore and companies registered here, consult with a certified professional. This article does not provide legal advice. 

What to do in Singapore? Mundo helps you register and maintain your business

Our team of experts is ready to help you establish your business in Asia in full compliance with Singapore law. A solid approach to corporate initiative is vital if one wants to assure the success of a business. 

In Singapore, there is a framework that supports all the pathways and processes to consolidate a company. Thus, this option offers ample possibilities to operate in the region and worldwide.

A good companion for your Singapore business might be a Nevis trust, a Cayman Island company or a Panama residency. The possibilities are endless for those who dare to go global in the complex financial world of our century.

Contact us for more information

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