Singapore’s business system is efficient but demands strict compliance. Small companies often face fines due to avoidable mistakes. Understanding these issues and taking preventive steps can keep your business penalty-free. Below are the key pitfalls and solutions.

Don’t Skip Filing Deadlines

One of the biggest errors is missing ACRA annual returns or IRAS tax filing deadlines. These are mandatory, and delays trigger penalties.

Annual returns must be filed within seven months of the financial year-end. Tax returns are due by November. Consistent misses can lead to legal trouble. Track deadlines with a calendar or use corporate secretarial services to manage filings.

Company Secretary Requirement

Every Singapore company must appoint a qualified company secretary within six months of incorporation. This role ensures compliance through filings, resolutions, and record updates.

Not appointing a secretary or using someone unqualified risks fines. Secretarial services can handle this if your team lacks resources.

Notify ACRA of Changes

Changes like new directors, address updates, or share issuances must be reported to ACRA, usually within 14 days. Failing to report risks fines or director liability if records don’t align.

Inform your secretary or service provider as soon as changes occur to maintain compliance.

Keep Records in Order

Companies must maintain records, including shareholder and director registers, meeting minutes, and resolutions. Many startups neglect this, thinking it’s low priority. Missing records can complicate audits or funding, and ACRA can issue penalties.

Designate someone to manage records or rely on secretarial services for proper organization.

Know AGM Obligations

Private companies can avoid Annual General Meetings if they send financial statements to shareholders within five months of the financial year-end. If this doesn’t happen, an AGM is required. Misjudging this can lead to compliance issues.

Check your AGM status with your secretary each year to avoid mistakes.

File Taxes, Regardless of Profit

A common myth is that companies without profit don’t need to file tax returns. All companies, even dormant ones, must file annual returns with IRAS. Skipping this risks fines or deregistration.

Consult an accountant or corporate secretarial services to ensure timely filings, including for zero-income returns.

Maintain a Compliant Address

Your company needs a Singapore address, accessible three hours daily on business days. An unsuitable address or failure to update it can lead to missed notices and fines.

Corporate secretarial services often provide compliant registered address options for businesses without a physical office.

Avoid DIY Compliance Errors

Handling compliance yourself may save costs initially, but mistakes like wrong filings or missed deadlines are common without expertise. Correcting these can be costly.

Secretarial services ensure compliance is done right, minimizing risks.

Compliance Saves Money

Singapore’s rules are straightforward but demand diligence. Fines often result from minor errors. Review your filings and records regularly, and consider corporate secretarial services for support.

Stay proactive to prevent fines and keep your business on solid ground.