The Companies Act in Singapore has been changed and revised, to benefit both entrepreneurs and the government better. The audit exemptions standards were altered, and the notion of ‘small companies’ was supplemented. This option offers audit exemption for both the existing and newly registered private limited companies in order to leverage the expansion of Small and Medium Enterprises (SMEs).
NEW AUDIT EXEMPTION REQUIREMENTS IN SINGAPORE
Unless the firm meets the audit exemption criterion, the Singapore Companies Act requires every company to have its financial statements and accounting records audited by an auditor on an annual basis. The requirements for a small company are;
- The total annual revenue of the company must not be more than 10 million SGD
- The total assets of the company for the financial year-end must not be more than 10 million SGD
- The number of full-time employees at the end of the financial year must not be more than 50.
For private limited companies in Singapore, they do not need to do audits if;
- It is a dormant company, or
- It is an exempt private company (EPC) with annual revenue of 5 million SGD or less.
GROUP COMPANY AUDIT REQUIREMENT
A group company or a holding company is exempted from audit if all of the subsidiary companies;
- Fulfill at least two of the conditions of a small company
- A relatively small group of companies.
A small group of companies is qualified as so if two of the small company criteria are met in two consecutive financial years.
EXEMPTED AUDIT DISQUALIFICATION
Your company can be disqualified from the small company status due to the change in company audit status. Disqualification occurs if;
- No longer categorized as a private company in the financial year.
- No longer fulfill the small company requirements for two consecutive financial years.
Contact us if you require further clarifications or assistance with a Singapore company audit.
