The Ultimate Guide to Annual Return Filing and XBRL in Singapore
If your business is registered in Singapore, you are required to file annual returns with the Accounting and Corporate Regulatory Authority (ACRA) within a specified timeframe after your financial year ends. Timely filing of annual returns is crucial for maintaining compliance and avoiding penalties. However, the process can be complex. This guide breaks down everything you need to know about financial statements, XBRL filing, deadlines, and the consequences of non-compliance. Read on to make this process easier to navigate.
Your Annual Return Checklist
What is an Annual Return?
An annual return is a yearly submission that includes essential details about your company’s structure, operations, and financial status. It ensures transparency for regulatory bodies and stakeholders, promoting accountability in Singapore’s business environment.
Who Can File the Annual Return?
The company’s appointed officer can file the annual return through ACRA’s online portal, BizFile+. Alternatively, you can hire a registered filing agent to manage the process on your behalf.
Key Information in the Annual Return
An annual return typically includes the following:
- Company Details: Your company’s name, Unique Entity Number (UEN), and registered office address.
- Principal Activities: Descriptions of your company’s main and secondary business activities.
- Company Officers: Information on the directors, secretary, and auditors.
- Shareholder Information: Number of shares issued, share capital, and paid-up capital.
- Financial Statements: Companies that need to file financial statements will do so, while others must submit an online declaration.
Financial Statements: What You Need to Prepare
Financial statements give a detailed view of your company’s financial position. All Singapore-based companies are required to file these, unless exempt.
The main components are:
- Statement of Financial Position (Balance Sheet): Shows assets, liabilities, and equity.
- Statement of Comprehensive Income (Profit and Loss Statement): Reflects the company’s revenue, expenses, gains, and losses over the period.
- Statement of Changes in Equity: Displays the movement in share capital, dividends, and profits.
- Statement of Cash Flows: Details cash flow from operating, investing, and financing activities.
- Notes to Financial Statements: Provides additional information, such as accounting policies and breakdowns of figures.
Audit Requirements
Your company may need to have its financial statements audited if it meets any two of the following conditions:
- Total annual revenue exceeds S$10 million
- Total assets exceed S$10 million
- More than 50 employees
If your company does not meet these criteria, you may prepare unaudited financial statements instead.
Annual General Meeting (AGM)
Unless exempt, an Annual General Meeting (AGM) is required to update shareholders on the company’s performance. At this meeting, your financial statements will be presented and must be approved by the shareholders.
XBRL Filing Requirements
Since 2014, all Singapore companies (except those exempt) must file their financial statements in eXtensible Business Reporting Language (XBRL). This XML-based format allows for more accurate and accessible financial reporting, improving regulatory compliance.
Filing Deadlines in Singapore
Under the Companies Act 1967, non-listed companies must submit their annual returns to ACRA within 7 months from the end of their financial year.
Penalties for Late Filing
Timely filing is essential. If you miss the deadline, your company will face a late filing penalty of up to S$600.
If you anticipate delays, you may request a 60-day extension from ACRA. Note that processing the extension request takes at least 14 working days, so it’s recommended to submit the application at least 14 working days before the deadline.
Need Help Filing Your Annual Return?
Managing financial statements, meeting audit requirements, and ensuring compliance with XBRL filing deadlines can be challenging. However, failure to comply can lead to penalties and unnecessary stress.
That’s where WLP comes in. Our team of experts can handle your financial statement preparation, XBRL filings, and annual returns to ensure full compliance with ACRA’s requirements, accurately and on time. With our tailored solutions, you can focus on growing your business while we take care of the complex regulatory work.
Contact WLP today and simplify your compliance process!