The Accounting and Regulatory Authority Singapore (ACRA) is in charge of overseeing the registration and regulation of companies in Singapore. One of the reasons why ACRA has a set of guidelines that should be followed when registering a company, is because some companies still fail to meet these guidelines. The outcome may result in delays at a time when you desperately need to have the company registered, or in some cases, penalties may be given for non-compliance. Businesses in Singapore seek company registration services to therefore help in making the process quicker and more efficient.
Failure to notify ACRA of changes in the company’s structure
You may have registered the company as a sole proprietorship or even a partnership, should there be a change, ACRA needs to be notified within 14 days. Failure to give this notice means that officially, the structure remains as it was when the company was registered. Some of the changes include change of name, the company’s registered address, share capital, shareholders, business activities, directors, or personal details or the directors.
It is vital to note any changes made and have them officially adopted in the official documents. This will save you penalties in the future, while at the same time give you the freedom to progress with your plans for the company without being held back because of negligence.
Improper storage of statutory records
Registering a company is not enough for ACRA. You are also required to maintain official records. These records show that the company is a legal entity, details of the directors and shareholders, register of company charges, and minutes books. These details may be requested at any time by ACRA or auditors. Failure to keep these records safe may result in a penalty for your company.
Failure to file annual returns with ACRA
Every company is required to file an annual return with ACRA. All the necessary documents need to be prepared and made available should they be requested. The company’s Directors need to verify that the information is correct before the papers are filed. Any mistakes could prove costly for the company. These returns should be filed within a month after the annual general meeting. Failure to file the returns will result in a fine on the company, and responsible officers.
Failure to hold Annual General Meetings
By law, Singapore companies are expected to hold annual general meetings. This is a significant part of the requirements for filing returns. This is usually done to ensure all the members are agree with the given figures and encourages transparency, especially in cases where the shareholders are not involved in the day to day running of the business. Private limited companies are not obligated to hold an AGM. Instead, through a shareholder vote, the company may pass an ordinary resolution. Failure to do this may lead to a penalty from ACRA.
Giving misleading information
When registering a company or filing annual returns, it is critical for you to ensure that all the provided information is accurate. This is why any changes made in the company need to be communicated to ACRA. Otherwise, the company and officers will be given a penalty that would otherwise have been avoided.
Knowing the complications that can arise from neglecting the given guidelines by ACRA, it is essential to follow the rules and regulations to avoid crippling the company at a later date.