All Singapore incorporated companies are required to file their annual returns on time. Failure to comply with these annual return regulations results in a penalty of $300 (for every breach) against such companies.
Additionally, the ACRA mandates under section 175(1) of Singapore’s Company Act that all companies registered in Singapore are required to conduct their Annual General Meetings within 18 months from the incorporation.
Further, the directors of the company are required to showcase up-to-date accounts at the AGM. An extension of 6 months is allowed for accounts updating, except for non-listed companies.
The Covid-19 Effect
Due to the lockdown, ACRA allows all the listed and non-listed Singapore-based companies a 60 days extension of the deadline for AGM. This is only applicable to companies whose AGMs are due during the period ranging between 16th April 2020 – 31st July 2020. Such companies, under the new extension period, may now file their annual returns from a period between 1st May 2020 – 31st August 2020. What’s more, you don’t need to apply for the extension of time, the portal will pick it up automatically, and no penalty will be levied.
Coming back to the topic, let’s see what happens if your company doesn’t hold the AGM on time or is in breach of filing annual returns.
What Happens if Your Company Fails to Comply with ACRA Filing Requirements?
Stage 1: Companies are required to pay a composition totaling to $600, i.e. $300 for each breach.
Stage 2: After the summons is issued, ACRA may offer a composition of $600 per breach.
Stage 3: If an arrest warrant is issued, ACRA may offer a composition of $900 per breach.
If the director at any time fails to comply with the summons and doesn’t show up in court, a warrant for his/her arrest may be issued by the court. In court, the director can decide to plead guilty or choose to go to trial for the charges. If the director is convicted in court, he/she may be fined up to a maximum of $5000 per charge.
Additionally, if a director is convicted for three or more filing related offences within five years, he/she will be disqualified under section 155 of the Companies Act. Once the director is disqualified, he/she will not be allowed to hold the same position (director) for any other company or take part in the management of any local or foreign company for five years.
Finally, ACRA may decide to strike off the name of the company in case there is a reasonable cause to believe that a company is not carrying out any business operation.
Stay on Top of ACRA Filing Regulations
ACRA is stern about the Annual General Meeting and Annual Return filing requirements. Failure to comply with these filing regulations can result in a hefty penalty and even court prosecution. But with a steadfast partner like DataTracks, your company can have access to timely XBRL conversion services that can help the firm comply with all ACRA requirements before the due date. For more information about the reliable services provided by DataTracks and how they can help you stay on top of your annual returns conversion, speak to an expert @ +65-31583654 or write to email@example.com