Filing Financial Statements in Singapore: A Comprehensive Guide 🇸🇬

Filing Financial Statements in Singapore: A Comprehensive Guide 🇸🇬 | Bestar

Filing Financial Statements in Singapore: A Comprehensive Guide 🇸🇬

In Singapore, it's mandatory for companies to file their financial statements with the Accounting and Corporate Regulatory Authority (ACRA). This process, known as statutory filing, ensures transparency and compliance.

Who Needs to File Financial Statements?

Generally, all Singapore-incorporated companies are required to file their financial statements with ACRA. However, there are exceptions. Exempt Private Companies (EPCs) that meet certain criteria are not required to file their financial statements with ACRA.

To be an EPC, a company must:

• Be a private company with fewer than 20 shareholders.

  
  

• Have no corporate shareholders.

However, even EPCs must prepare financial statements and lodge them with ACRA, unless they're dormant and meet specific criteria.

What to File and When?

The type of financial statements to be filed depends on the company's status. For non-EPCs, a complete set of financial statements, including the balance sheet, profit and loss statement, cash flow statement, and statement of changes in equity, is required.

The financial statements must be filed in a format known as XBRL (eXtensible Business Reporting Language). This is a globally recognized digital language for financial reporting, making the information machine-readable and easier to analyze.

The deadline for filing is generally seven months after the company's financial year-end. For public listed companies, the deadline is five months.

What is XBRL Filing?

XBRL is a crucial part of the filing process in Singapore. It's not just about converting a PDF; it's about tagging each piece of financial data with a specific label. This makes the data comparable and analyzable across different companies and industries.

There are two main types of XBRL filing:

1. Full XBRL: For most companies, this involves submitting their full financial statements in the XBRL format.

   
   

2. Simplified XBRL: A simplified filing option for small companies, which requires less detailed tagging.

   
   

ACRA provides a free BizFinx preparation tool to help companies convert their financial statements to the XBRL format.

Common Mistakes to Avoid

• Missing the Deadline: Late filing can result in penalties and fines. It's crucial to be aware of your company's financial year-end and the corresponding filing deadline.

  
  

• Incorrect Format: Filing in the wrong format (e.g., PDF instead of XBRL) will lead to rejection.

  
  

• Incomplete Information: Ensure all required statements and disclosures are included.

  
  

• Incorrect EPC Status: Some companies mistakenly classify themselves as EPCs and fail to file when they are not, leading to non-compliance. It's important to verify your eligibility for EPC status.

Why is it Important to File on Time?

Timely and accurate filing of financial statements is a legal obligation and is essential for several reasons:

• Compliance: It ensures the company is compliant with the Singapore Companies Act.

  
  

• Credibility: It enhances a company's credibility with stakeholders, including banks, investors, and potential business partners.

  
  

• Transparency: It provides a transparent view of the company's financial health to the public and regulatory bodies.

For a smoother process, it's often advisable to engage a corporate secretarial service provider who can handle the entire filing process, ensuring accuracy and timely submission.

How Bestar Can Help Your Business Succeed in Singapore 🇸🇬

Filing Financial Statements in Singapore: A Comprehensive Guide 🇸🇬

Navigating the complexities of business compliance in Singapore can be a challenge for new entrepreneurs and established companies alike. From company incorporation to annual financial filings, the administrative burden can be a significant drain on your time and resources. This is where a trusted corporate services provider like Bestar can make all the difference.

Bestar is a full-service financial and corporate solutions firm based in Singapore. With a team of experienced professionals, Bestar offers a comprehensive suite of services designed to help businesses of all sizes meet their regulatory obligations and achieve their growth objectives.

Core Services Provided by Bestar

1. Company Incorporation & Business Setup: For foreign and local entrepreneurs, setting up a new company in Singapore can be a seamless process with Bestar's expert guidance. We handle all the necessary paperwork and liaise with the Accounting and Corporate Regulatory Authority (ACRA) to ensure a smooth and efficient registration. This includes everything from choosing the right business structure to registering with the relevant government agencies.

2. Corporate Secretarial Services: In Singapore, every company must appoint a company secretary. Bestar's corporate secretarial services ensure your business remains compliant with the Singapore Companies Act. We manage crucial tasks such as:

• Maintaining statutory registers and records.

  
  

• Preparing and filing resolutions.

  
  

• Organizing board meetings and AGMs.

  
  

• Handling annual return filings with ACRA.

3. Accounting, Bookkeeping & Payroll: Bestar provides comprehensive accounting and bookkeeping solutions, allowing you to focus on your core business activities. Our services include:

• Timely and accurate bookkeeping to keep your financial records in order.

  
  

• Preparation of financial statements in compliance with Singapore Financial Reporting Standards (SFRS).

  
  

• Managing payroll and HR functions, ensuring employee salaries and statutory contributions are processed correctly.

4. Tax Advisory & Compliance: Singapore's tax system is known for its competitive rates, but navigating the various regulations can be complex. Bestar's tax professionals offer strategic advice and compliance services, including:

• Corporate and personal tax filing.

  
  

• GST (Goods and Services Tax) registration and submission.

  
  

• Assistance with tax planning to minimize your tax liabilities legally.

5. Audit and Assurance: For companies that require a statutory audit, Bestar provides professional and independent audit services. Our team ensures your financial statements are prepared accurately and in accordance with auditing standards, providing credibility and transparency to your stakeholders.

Why Choose Bestar for Your Business Needs?

• Integrated Solutions: Bestar offers a "one-stop shop" for all your corporate and financial needs. This integrated approach saves you time and ensures consistency across all your business functions.

  
  

• Expert Knowledge: The team at Bestar is well-versed in Singapore's legal and regulatory landscape, providing you with up-to-date and reliable advice.

  
  

• Client-Centric Approach: Bestar is committed to building long-term relationships with its clients, working closely with you to understand your unique business challenges and opportunities.

  
  

By partnering with Bestar, you can offload your administrative and compliance tasks, allowing you to dedicate your full attention to business growth. Whether you're a startup looking for a reliable partner or an established firm seeking to streamline your operations, Bestar has the expertise to support you every step of the way.

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