Last updated
A small Singapore company has the same core accounting duties as a large one. Keep proper records for at least five years, prepare financial statements, and meet the ACRA and IRAS dates. What small companies can often skip is the audit.
We are an independent guide, not ACRA, IRAS or an accounting firm. If you ask for quotes below, we pass your request to firms that look suitable, and we may be paid by them.
What must a small business keep and file?
Checked :
| Duty | Rule | Body |
|---|---|---|
| Accounting records | Keep at least five years after the financial year in which the transactions were completed | ACRA |
| Financial statements | True and fair view, presented at the AGM | ACRA |
| Estimated Chargeable Income | Within 3 months of year end; waiver if revenue is S$5 million or below and ECI is nil | IRAS |
| Form C-S, C-S (Lite) or Form C | 30 November each year | IRAS |
| GST registration | When taxable turnover exceeds S$1 million | IRAS |
| GST returns | Due 1 month after each accounting period | IRAS |
More on the ACRA dates is in our annual return and AGM guide. The tax side is in corporate tax in Singapore.
Does a small company need an audit?
Often not. ACRA's test for a private company is at least 2 of 3 conditions in the immediate past 2 consecutive years: revenue of S$10 million or less, total assets of S$10 million or less and 50 employees or fewer. For a group, ACRA looks at the holding company's consolidated figures. A dormant company is exempt under section 205B of the Companies Act.
Exemption removes the audit, not the filing. ACRA also announced a review of the framework on that looks at higher thresholds, so check the current rule. Read more in the audit exemption guide.
When does GST start?
IRAS says to register when annual taxable turnover is more than S$1 million, at the end of a calendar year or expected in the next 12 months. Late notification can mean a fine up to S$10,000 and a 10% penalty on GST due. Voluntary registrants must stay registered for 2 years. The rate is 9%. See GST registration and the GST filing guide.
How should a small business set up its books?
- Open a separate business bank account. See the business bank account guide.
- Pick accounting software and connect the bank. Our accounting software page lists what vendors publish.
- Save every invoice and receipt, in one place, as you go.
- Reconcile the bank each month.
- Record payroll and CPF as they happen. See payroll services.
- Give your accountant the full year of records before the ECI date.
Should you hire an accountant or do it yourself?
Doing the books yourself works when transactions are few and you are comfortable with software. Bring in a firm for the statements and tax, or for everything. We do not publish firm prices, because the pages we read do not. Compare quotes on written scope, as in our accounting services guide and the outsourcing guide.
Need a firm to quote? Use the form on this page.
What mistakes cost small businesses the most?
Mixing personal and company money, which makes the books hard to trust. Missing the 3 month ECI date because the year end slipped past. Forgetting that exemption from audit does not exempt you from filing. Registering for GST late. Each of these is avoidable with a simple calendar and one place for records.
Sources
- ACRA: company directors' duties: records and five-year rule.
- ACRA: audit exemptions: small company tests, dormant companies, filing still required.
- IRAS: estimated chargeable income: ECI date and waiver.
- IRAS: do I need to register for GST: threshold and late fine.
- IRAS: current GST rates: 9%.
