Have you ever received a reminder from your corporate secretary telling you that you need to file your annual returns? If you have, then you have come to the right place! The main goal of this guide is to explain all the steps that you need to take if you want to ensure that your company stays compliant at all times.
Things to Keep in Mind
If a private company sends its financial statements within five months from the date of its Financial Year End, that company is automatically exempted from holding any Annual General Meetings (AGM). However, the following three safeguards are in play here:
- A company member who would like to ask for an AGM to be held should always notify the company to hold an AGM not later than the last day of the sixth month of the company’s Financial Year End.
- If any company member asks for an AGM to be held, the company directors must organise an AGM within six months after the company’s Financial Year End.
- If any members or auditors ask for an AGM to be held, private companies must have a general meeting not later than two weeks after the date on which the financial statements were sent out.
Do not hesitate to reach out to our support team at Timcole with your company’s financial statements preparation status. We would be more than happy to help you out when it comes to this kind of thing.
Steps To File Your Annual Returns
Step 1: Preparing Your Financial Statements
Preparing your financial accounts promptly after your company’s Financial Year End is one of the best things you can do if you want to have a smooth annual return process. Many of the subsequent steps in this process depend on having your financial accounts ready. For example, you need to prepare your financial statements to hold your AGM. And then, to file your annual returns, you must have your AGM first. There are some instances in which your financial accounts can remain unaudited.
Step 2: Holding Your Annual General Meeting
More often than not, companies are required to send their notice of an AGM at least 14 days before the meeting itself, and this period might be even longer if there is a special resolution or notice requirement in place (this is subject to the company’s constitution that is submitted while incorporation). However, if the members who are entitled to attend and vote at the meetings agree, a company can also give shorter notice for its meetings. It is the responsibility of either your company director or your corporate secretary to draft out and send the notices for these meetings. Although the company’s constitution is responsible for specifying what mode of delivery will be allowed, these notices are often circulated online.
Step 3: Sending Both Your Financial Statements and AGM Details to Your Corporate Secretary
It is your responsibility to submit the details of your financial statements and AGM to your corporate secretary within 30 days from the date on which the AGM took place. Your corporate secretary will then use BizFile+ to file the information you submitted with ACRA. Keep in mind that this information should be submitted at least one week before the filing deadline. This is because the official ACRA site can sometimes get overloaded with filing requests, which can cause interruptions in service. This peak usually happens when the filing deadline is near.
What to Do If Your Financial Statements Are Not Ready On-Time?
If your financial statements are not ready for presentation at your AGM and annual return, your corporate secretary can apply for an extension of time on your behalf. The act of filing an extension comes with some extra costs, but these costs are not too high.
What to Do If Your Company Is Dormant?
Even if your company is dormant, it is still your responsibility to file your annual return and hold your AGM. Dormant companies are still required to take care of their annual return filings with ACRA within the stipulated time (unless a company is exempted from this requirement), convene their AGM either by written means or physically, and prepare their accounts in accordance with Singapore accounting standards (SFRS).
What Is the Next Step?
Failing to get your annual return on time might result in some penalty fees for your company. This is why you should always take care of it as soon as possible. If you need any help with this kind of thing, do not hesitate to contact our team of professionals here at Timcole. We would be more than happy to help you out!
Timcole is one of the leading company incorporation and accounting firm based in Singapore. Our wide range of professional services serves as a one-stop solution for your business, offering you the most affordable price for services conducted with the highest level of excellence.
You can also depend on Timcole for your company bookkeeping and annual tax returns submission. Our tax professionals can assist you with proper tax computation and planning and help devise effective tax strategies.
Contact us to find out more about how we can help you with your company today.