Companies in Singapore are exempted from having its accounts audited if it is an Exempt Private Company with annual revenue of $5 million or less. Notably, a company no longer needs to be an exempt private company to be exempted from audit. Such companies are required to prepare unaudited financial reports yearly. 

All other companies that are not exempted are required to appoint an auditor within three months of incorporation and be prepared to submit audited financial reports to ACRA. The accounts must be audited annually. 

KJ Advisory provides full account services, including the preparation of unaudited financial reports for exempt companies. We also work closely with our associated audit partners in providing auditing services of financial statements in compliance with ACRA’s and IRAS’s statutory requirements.

All Goods and Services Tax (GST) registered companies are to adhere to GST rules and regulations in order to avoid penalties for non-compliance. GST is a consumption tax levied on the import of goods (collected by Singapore Customs), and nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT. 

Should your taxable turnover exceeds SGD$1million, it is compulsory to register your business for GST. However, you may still choose to register your business for GST voluntarily if your business does not exceed SGD$1 million in taxable turnover. 

Our professional team assist our clients in GST registrations and de-registrations. Here at KJ Advisory, we shall prepare and submit GST returns on your behalf to IRAS in compliance with Singapore GST Act. We shall also review the compliance data and GST returns for you, advise you on any special and complicated transactions that may require GST reporting, and liaise with the Tax Authority on your behalf. 

We as your qualified accountant will guide you in reviewing of invoicing requirements and assist you in your queries pertaining to GST audits by tax authority.

A financial statement reflects the financial status for all of the company’s related entities, including the original company assets. When a parent company acquires stock in a company to create a subsidiary, the subsidiary is required to maintain its own separate accounting records. Being a subsidiary, it does not operate independently. For the same reason, the parent company are required to consolidate financial statements to present its own financial operations, as well as those of the subsidiary. 

In order to present accurate financial reports of the company for investors and relevant counter parties, Multi-national corporations and major Multi-national corporations in Singapore must consolidate their financial statements. Our exquisite professional accounting team provides consolidation accounting services, ensuring that your corporation’s financial statements of the parent company and the subsidiary are proper and relevant. 

All companies incorporated in Singapore (unless exempted) are all required to file their financial statements with ACRA. 

Companies are required to file a full set of financial statements in XBRL format, according to a Minimum Requirement List within the new ACRA Taxonomy 2013 (i.e. Full XBRL). Whether the company is solvent or insolvent, its position will determine the needs to file Financial Statement with ACRA. Solvent exempt private companies will continue to be exempted from filing their Financial Statements while insolvent exempt private companies will have the following options to file their financial statements with ACRA: 

• A full set of financial statements in XBRL format; or 
• A full set of financial statements in PDF with Financial Statements Highlights in XBRL format. 

Our clients leaves the XBRL filing procedure to us due to its time-consuming nature, which involves studying of the system, selection of disclosures, inputing the data and tallying of information. Be rest assured and leave this hard work to us, we are an expert in this field.

There are situations when company decides to slow the business down during its downtime and wishes to sustain the company at its minimal cost, giving company the option to recommence businesses whenever ready. 

Inland Revenue Authority of Singapore (IRAS) and Accounting and Corporate Regulatory Authority (ACRA) each has its own definition for Dormancy. 

IRAS’ definition as a Dormant Company 

A dormant company is one that does not carry on business and had no income for the whole of the basis period even though may have expenses booked. For example, if a company did not carry on business and had no income for the whole of the basis period ending in year 2019, it will be regarded as a dormant company for Year of Assessment (YA) 2020. Dormant companies may have incurred expenses.
 

A dormant company must submit its Income Tax Return unless the company has been granted waiver of Income Tax Return submission. 

ACRA’s definition as a Dormant company 

In accordance to the Companies Act, a company is regarded as dormant when there is no accounting transaction during that financial year. The Companies Act also states the transactions which will are to be disregarded when determining dormancy: 

• the taking of shares in the company by a subscriber to the memorandum in pursuance of an undertaking of his in the memorandum;
• the appointment of a secretary of the company; 
• the appointment of an auditor; 
• the maintenance of a registered office; 
• the keeping of registers and books; 
• the payment of any fee and charges payable under written law; 
• the payment of any composition amount payable under written law; 

Why should you pay more? KJ Advisory has tailor made a Dormant Company Package to let you have a peace of mind. This package will provide advisory for your dormancy eligibility and works on the Preparation of management account for Annual Return filing. This package is as low as $500/year. Let’s keep cost to its minimal and recommence business when it’s time!