We all know or have heard of the numerous fines in Singapore when you are not allowed to even bring chewing gum to the country, litter, leave water after watering in flower pans, etc. And what about the company’s fines in Singapore? Are they also harsh?
Certainly, fines are inconvenient and damage the development of the company. To avoid corporate fines, it is extremely important to hire a competent corporate secretary of Singapore, as it will be entrusted with the task of ensuring the timely fulfillment of all legal requirements for the company. However, it is also important for you to understand in what situations you can potentially risk. Our article is about this.
Annual reports of the Singapore company
Annual reports are usually submitted in electronic form and depend on the results of the annual General meeting of shareholders of the company. Annual reports must be filed within one month from the date of the annual general meeting of shareholders. Companies that are recently registered have the right to hold the first annual general meeting of shareholders within 18 months from the date of registration of the company.
The requirements for the annual report vary depending on the type of company. The documents include information on the company’s full name, registration number, as well as address, data on main types of activities, type of company, information on directors, company secretary, shareholders and auditors of the company, as well as data on the size of the share capital.
Your Singapore Corporate Secretary should help ensure that annual documents are prepared for submission through BizFile. They are also responsible for submitting annual reports and updating any changes on behalf of the company.
If the company is unable to file annual reports on time, the company’s penalties in Singapore may range from $ 60 to $ 350. Remember that the penalty fees are imposed on the basis of individual items, so the total amount of fines can become quite significant sums.
The fee for extending the deadline for filing an annual report is usually about $ 50 per month with a maximum period of two months. You can apply for an extension only once. Non-compliance with regulatory requirements may lead to the issuance of court summons to directors and company officials.
Singapore’s corporate secretary should monitor that your company will hold a general meeting of shareholders in a timely manner, not only assisting in preparation, but also preparing protocols and noting important business decisions. The agenda must be drafted and sent to all shareholders and directors. The minutes of the meeting are kept in a safe place.
Recently, the Government of Singapore has been taking measures to ensure compliance with the requirements for the timely holding of annual general meetings and the provision of annual reports. In addition to the imposition of punishments and agendas, serious cases of non-compliance may lead to the issuance of an arrest warrant. A director or a corporate secretary who does not comply with the requirements of the law of Singapore companies for three or more months continuously, may also face orders to ban activities.
Read more “6 reasons for launching a startup in Singapore”
Hiring the right company secretary can help you avoid the risk of encountering such huge fines. Their duties include consulting on potential risks, reminding shareholders of their statutory obligations, as well as timely preparation of the necessary documents for filing. Alternatively, you can contact a consulting company that provides the services of a secretary, director, legal address, etc.
If you need a company secretary or a resident director of Singapore, as well as help in registering a company, maintaining accounting records, preparing financial statements, etc., contact our specialists!