1. All Singapore incorporated business entities are required to prepare Annual Financial Statements. The Annual Financial Statements has to be filed with ACRA and IRAS, except for those which are exempted.
2. A typical Annual Financial Statements for business entities such as sole proprietorship, partnership, limited liability partnership, or limited partnership, comprises of Profit and Loss Statement and Balance Sheet Statement.
3. For private limited companies, a typical Annual Financial Statements will contain not just Profit and Loss Statement and Balance Sheet Statement. It will also include the Directors’ Statement, Statement of Equity, Cashflow Statements and Notes to the Annual Financial Statements.
4. The information in the Annual Financial Statements is useful for you to know whether your business is making a profit or a loss. In addition, you will be able to report your income in the tax return easily during tax filing period if you have prepared your statement of accounts.
5. Sole proprietorship, partnership, limited liability partnership, or limited partnership are not required to file Annual Financial Statements with ACRA. However, if your Annual Revenue is $500,000 or more, you need to submit a Certified Annual Financial Statements to IRAS.
6. As for Private Limited Companies, you are required to file the Annual Financial Statements with ACRA and IRAS, unless exempted.
7. Private Limited Companies with Annual Revenue of $5 million or more need to file their Annual Financial Statements with IRAS together with Form C. It also need to file the Annual Financial Statements with ACRA if they are not Exempt Private Limited Companies such as having corporate shareholders.
8. Private Limited Companies with Annual Revenue of $5 million or below do not need to file their Annual Financial Statements with IRAS together with Form C-S. It also do not need to file the Annual Financial Statements with ACRA if they are Exempt Private Limited Companies. This are companies that do not have any corporate shareholders.
9. For the avoidance of doubt, all Singapore business entities are required to prepare financial statements, except for those which are dormant and did not conduct any business activities for the period.
10. If you require any assistance to prepare Annual Financial Statements for your business, please come and talk to us. We at PL Biz Consulting Pte Ltd have the expertise and knowledge in preparing a proper Annual Financial Statements for your business.
