Singapore Companies Act - FAQsby Andrew Chen
Both local as well as foreign companies in Singapore must study the Company Act Singapore thoroughly in order to ensure they fulfill the ongoing compliance requirements as set by the Companies Act. Not just that but knowing the key features of the Act will also help any company make the most of the liberal and business friendly laws of the country.
Therefore a lot of entrepreneurs as well as company management executives ask a lot of questions regarding the Singapore Companies Act. Some of the common or frequently asked questions are as follows:
Q - What type of companies is governed by the Companies Act?
A - All companies formed in Singapore are governed by the Singapore Companies Act.
A company in Singapore means:
1) Private Limited Liability Company â€“ The most common form of company incorporated in Singapore.
2) Public Limited Liability Company.
3) Public Company Limited by Guarantee.
However, entrepreneurs should note that other business entities such as sole proprietorship and partnership businesses do not fall under the regulations of the Singapore Companies Act. These types of businesses are usually meant for local entrepreneurs and foreign companies usually incorporate a private limited company.
Q - For certain industries or type of companies, are there any statutes other than the Singapore Companies Act?
A - Yes, depending upon your industry, there may be regulations from other statutes as well. An example of this is the Finance industry which is governed by the Finance Companies Act.
Q - What are the statutory compliance requirements as per the Singapore Companies Act?
A - There are several compliance requirements as set by the Companies Act. The key requirements are as follows:
1) Every company must appoint a company secretary who is a local Singapore resident.
2) A company must have a locally registered address which can be a residential or a commercial address but cannot be a PO Box.
3) A company must have at least one local director who is a Singapore resident.
4) Every company must fix a financial year end. For subsidiary companies, the financial year end must coincide with the financial year of the holding company.
5) A company must appoint an auditor within 3 months from the date of incorporation.
6) If the companyâ€™s turnover is over S$1 million for the past 12 months, they must apply for GST registration.
7) If the business activities of the company fall under any category which requires a license, then the company must apply for the appropriate license before commencing operations.
8) All accounting records must be duly maintained and kept for minimum 5 years after the completion of the transactions or operations to which they relate to.
Created on Dec 31st 1969 19:00. Viewed 0 times.