1. Appoint Company Secretary within 6 months from date of incorporation and ensure that the persons appointed are persons who appear to them to have the requisite knowledge and experience to discharge the functions of secretary of the company pursuant to Section 171 of the Companies Act.
2. Hold Annual Genearal Meeting (AGM) And File Annual Return To ACRA
The Company must hold an AGM within 18 months from the date of incorporation. Thereafter every AGM must be held once in every calendar year and not more than 15 months after the last AGM. The company must file the Annual Return with the Accounting and Corporate Regulatory Authority (ACRA) within 1 month from the date of the AGM.
3. Keep Proper Records and Prepare Annual Accounts
With effect from Year of Assessment 2008, employers are required to keep proper records of all employees’ income and deductions submitted to IRAS for 5 years.
The company must prepare a profit and loss accounts and balance sheet together with notes to the accounts giving a true and fair view of the state of affairs of the company at the end of the financial year.
The director’s report attached to the accounts must be approved by the board and signed by two directors.
4. Comply With Tax Obligation Imposed By IRAS
The company is required to declare its income by completing an Income Tax Form for companies, known as Form C, each year. Besides the filing of Form C, your company has to furnish an estimate of its chargeable income known as Estimated Chargeable Income (ECI) within three months from the end of its accounting period.
Penalties for not compliance with Statutory Requirements
Under the Companies Act, if a company fails to comply with the statutory requirements, the company and every officer of the company who is in default shall be guilty of an offence and shall be liable on conviction:
- Under Section 175 for a fine not exceeding $5,000 plus a default penalty.
- Under Section 188 for a fine not exceeding $2,000 plus a default penalty.
- Under Section 197 for a fine not exceeding $5,000 plus a default penalty.
- Under Section 201 for a fine not exceeding $5,000 plus a default penalty.
- Under Section 203 for a fine not exceeding $10,000 or imprisonment of not more than 2 years.
- Under Section 408 for a fine up to $200 per day plus default penalty.