Basics of Setting-up a Company in Singapore
This section covers the key steps, requirements, benefits, and challenges of starting a company in Singapore. Including classifying your economic activity, deciding your Financial Year End, understanding what Annual Returns and Annual General Meetings are and why are they required. To talk to a consultant contact us at Hub Singapore.
SSIC Code
SSIC code stands for Singapore Standard Industrial Classification code. It is a five-digit code that indicates the kind of economic activity that a business or an entity performs.
Why are SSIC codes used?Â
- It helps to categorize and arrange the economic activities in Singapore in a logical and consistent manner. This makes it easier to gather, examine, and compare statistical data on the composition and performance of the Singapore economy.
- They align with international standards like the International Standard Industrial Classification of All Economic Activities (ISIC).
- They are used to meet the legal and regulatory requirements for registering and operating a business in Singapore. You must provide your SSIC code when applying for a business name or incorporating a company with ACRA.
Registered Office Address
This is a physical office address in Singapore where your company will be registered. The registered office must be a URA- or HDB-approved commercial address, not a PO box or residential address. It must be open to the public for at least three hours on each business day.
Contact Hub for Registered Address Services.Â
Financial Year End (FYE)
The FYE, or financial year end, is the date that marks the end of a company’s 12-month accounting period. A company’s FYE is important for several reasons, such as:
FYE determines when to prepare and file financial statements, critical for reporting financial status to stakeholders.
The FYE determines when to prepare and file financial statements, critical for reporting financial status to stakeholders. It also dictates the AGM date for Pte Ltd companies to present financial statements, appoint or re-appoint directors and auditors, declare dividends, and address other matters requiring shareholder approval.
FYE determines when Pte Ltd companies in Singapore must file their annual returns (AR) with ACRA. The AR is a summary of the company’s key information, such as its name, address, directors, shareholders, share capital, etc.
FYE dictates when Pte Ltd companies in Singapore must file their corporate tax returns with IRAS. The corporate tax returns show the company’s taxable income and tax payable for the relevant year of assessment (YA).
It affects the company’s eligibility for tax exemptions and incentives that are based on the YA. Qualifying companies can get partial or full tax exemption for their first three consecutive YAs under the Tax Exemption Scheme for New Start-Up Companies.
Annual Returns and Annual General Meetings
Annual returns and AGMs are two important aspects of corporate compliance for Singapore companies. They are required by the Companies Act and the Accounting and Corporate Regulatory Authority (ACRA) to ensure that the company’s information on ACRA’s register is up to date and accurate.Â
Annual Returns (AR)
Annual returns are electronic forms that contain the company’s key information, such as its name, address, directors, shareholders, share capital, etc. They also include the date of the company’s annual general meeting (AGM) and its financial statements (if applicable). Annual returns must be filed with ACRA by the Corporate Secretary within 30 days of holding an AGM or within 60 days for companies having a share capital and keeping a branch register outside Singapore.
Annual General Meetings (AGM)
During AGMs, companies present financial statements, appoint or re-appoint directors and auditors, declare dividends, and address other matters needing shareholder approval. AGMs must be held within 6 months after the financial year end for private companies or within 4 months for public companies. Additionally, private companies may not need to hold an AGM if they meet certain criteria specified in section 175A of the Companies Act.
Compliance RequirementsÂ
Annual returns and AGMs are regulatory requirements in Singapore they provide transparency and accountability to the company’s stakeholders, such as shareholders, creditors, regulators, and the public. A part of the Corporate Secretaries duties is to file AR’s and hold AGM’s to ensure that the company is complying with the legal and regulatory requirements in Singapore and avoid penalties or enforcement actions for non-compliance. For Corporate Secretary services and more information on compliance Contact Hub.