Every company incorporated in Singapore is required by law to hold an Annual General Meeting (AGM) and file its annual returns. This process ensures that the company is compliant with the Accounting and Corporate Regulatory Authority (ACRA), which oversees the regulation of businesses in Singapore.
Each AGM must be held within 18 months of the company’s incorporation, and subsequently, no more than 15 months should pass between each AGM. The purpose of these meetings is to present a true and fair view of the company’s accounts to its shareholders. At these meetings, financial statements are presented showing what has happened financially in the business over the past year.
The first step towards compliance with this requirement involves preparing for your AGM. This includes creating an agenda that covers all necessary points such as approval of financial statements, declaration of dividends, reappointment or removal of auditors if needed among other things.
Once your agenda has been set, you will need to send out notices for your AGM at least 14 days before it takes place. These notices should include details about when and where it will happen along with any relevant documents like financial statements or reports.
At your meeting itself, you will need to record minutes detailing everything discussed during it including decisions made on various matters such as dividends or appointment/reappointment of auditors etc. These minutes serve as a legal record so they must be accurate and thorough.
Following your meeting, you have one month from date of holding Click here to learn more about AGM & Annual Filing returns with ACRA through BizFile+, an online filing system for companies in Singapore. Your annual return includes information about officers (directors/secretary), registered office address, shareholders’ details and share capital.
When filing annual returns, companies must also submit their audited/unaudited financial statements prepared according to Financial Reporting Standards in Singapore (SFRS). However small companies exempted from audit requirements can submit unaudited accounts instead but they must still be prepared according to SFRS.
Failure to comply with these requirements can result in penalties and fines, so it is crucial for companies to ensure that they are meeting their obligations. It may seem like a daunting task, but by breaking down the process into manageable steps and staying organized, companies can successfully navigate the AGM filing and annual returns process in Singapore.
In conclusion, holding an AGM and filing of annual returns is a mandatory requirement for all Singapore incorporated companies. This process ensures transparency between the company and its shareholders while also ensuring compliance with ACRA. By following the step-by-step guide outlined above, companies can meet this requirement without any hitches.
