Reasons Singapore Company get in trouble with ACRA
The Accounting and Regulatory Authority of Singapore (ACRA) is an official agency responsible for all business registrations and legislation in Singapore. ACRA strives hard to make it simple for businesses to grow in Singapore, businesses must adhere to its rules.
Every company and institution is required to follow a set of guidelines established by the government and authorities. This article will walk you through some of the frequent blunders that might get a Singapore company in trouble with ACRA in order to assist you to prevent issues, setbacks, or fines linked with your company’s ongoing management.
Not able to submit the annual returns with the ACRA:
As part of the continuing compliance, every Singapore firm is required to file an annual rate of return with ACRA. The office is responsible for ensuring that the company has completed all essential paperwork, and the director is responsible for ensuring that all knowledge in the Annual Return is valid.
A Singapore firm must submit its annual returns within a month after convening its annual conference to be in compliance. If Annual Returns are not submitted, the firm and any of its officers may be found guilty of a felony and will be fined up to S$5,000 per infringement.
Failure to keep statutory records:
Businesses in Singapore are expected to keep extensive and authorized documentation that demonstrates that the company is a legal construct that can verify claims of share ownership and other details about the firm’s directors, secretary, and shareholders. These data must be retained up-to-date. They should be regularly updated if the organization undergoes significant changes.
Inability to keep these data can lead to penalties of up to $5,000 per infringement, as well as other adverse consequences. The company secretary and legal team are in charge of ensuring that the company records are kept up to date.
Some of the examples of Statutory records are as follows:
- Shareholder registration
- Company charges registration
- Controllers’ registration
- Debenture holders’ registration
- Minutes Book
- Nominee director’s registration
- CEOs, Auditors, Secretaries, and directors’ registration
Annual General Meetings are not held:
Singapore corporations are required to have annual general meetings as part of their yearly registration obligations. Companies in Singapore are expected to keep an annual general meeting (AGM) at least once a financial year, at which the firm publishes its financial records for the preceding year and owners vote on company-wide issues. To host an AGM, shareholders must be notified of the venue and the resolutions to be voted on. In addition, the corporation must produce financial accounts as well as the director’s report.
By enacting an equitable remedy by a shareholder vote, privately owned businesses can opt out of holding an AGM. The business and every member in the firm may be guilty of an offense if an AGM is not convened or if a motion to forego the AGM is not approved, and fines of up to S$5,000 per infringement may be imposed.
Failure to inform ACRA of the business changes:
When a company’s policy, form, identity, authorized address, commercial working processes, shareholders, directors, or executives alter, many Singaporean enterprises make the massive mistake of failing to inform ACRA. Within two weeks, such adjustments must be reported with ACRA.
All modifications to the firm are not effective until ACRA has been informed. Furthermore, failing to inform ACRA within two weeks will lead to ACRA imposing fines.
Some examples of corporate change are as follows:
- Company name change
- Change of registered office address
- Changes in company operations
- Capital increase or decrease
- Shareholders have changed.
- Directorship changes
- Changes in the personal information of any of the company’s officers
Presenting deceptive or untrue statements:
Singapore enterprises must provide true and authentic corporate papers, according to ACRA. Anyone who voluntarily provides or allows the filing of fraudulent or deceptive papers to ACRA will face serious consequences, along with a fine of up to S$50,000, a maximum of 2-year prison term, or perhaps both.
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To stay in good status and avoid penalties, a Singapore corporation must follow ACRA standards. A corporation provider may assist you in understanding and meeting these obligations, as well as completing and filing the relevant documents with ACRA and keeping accurate statutory records in compliance with Singapore company law. If you need assistance with Singapore company formation and compliance management, contact us directly.
A Judge’s Order can reinstate a company’s image after it has been struck off within 6 years. This trade does not require any legal expenses.
If there is valid justification to think that a corporation is not conducting a trade or is not in existence, the firm or LLP can either willingly request to have its name struck off from ACRA’s record, or ACRA has already started the strike off.
Yes, you can shut down your business. The procedure is known as the dissolution of a private business. If specific circumstances are met, a voluntary dissolution can be used to remove firms from the Companies House Register. You can’t liquidate a firm if it has considerable debts.
Some of the ways through which a business can avoid being stricken off are as follows:
- Completing all pending tasks and collecting any outstanding payments.
- Making employees redundant and paying their final wages, as well as any other outstanding debts.
- Trading the corporate resources and inventories, and then dividing the profits among the owners.