In business, compliance refers to following the set of rules, policies, procedures and regulations that have been put in place. For a company to be compliant, it must adhere to all the standards that have been set for it. Depending on the industry, there can be different compliance requirements.
Being compliant is important for a number of reasons. It helps to ensure that a company is operating safely and efficiently. By adhering to set standards, companies can avoid costly mistakes and accidents. Compliance is an ongoing process, as new laws and regulations are constantly being enacted. So, it is important to know about the Compliance Requirements After Company Incorporation in Singapore.
The act of incorporating a company
Completing the process of incorporation is only the first step for business owners in Singapore. After a company has been successfully incorporated, there are a number of compliance measures that need to be adhered to in order to maintain good standing with the authorities.
One of the most important compliance requirements is filing annual returns. This must be done within 60 days of the anniversary of the company’s incorporation. The return must be filed with the Accounting and Corporate Regulatory Authority (ACRA) and must include updated information on the company’s shareholders, directors, and registered address.
Steps to take after incorporation to ensure compliance
After incorporation, there are a few key steps to take to ensure compliance in Singapore. Firstly, it is important to maintain updated and accurate records of shareholders, directors, and company secretaries. Also, the company should have its registered address in Singapore, and all correspondence should be addressed to this address. Furthermore, the company must hold an Annual General Meeting (AGM) within 18 months of incorporation, and every calendar year thereafter. Finally, the company must file its annual return with ACRA within one month of the AGM.
The benefits of compliance
As a business owner, it is important to be aware of the compliance requirements that apply to your company. By complying with these requirements, you can avoid potential penalties and legal problems. In addition, compliance can help to build trust with customers and other stakeholders.
Compliance also has financial benefits. For example, if you are compliant with tax regulations, you can claim certain deductions and exemptions. This can save your company money and improve your bottom line.
Overall, compliance provides many benefits for businesses in Singapore. By understanding the requirements and taking steps to meet them, you can protect your company from legal problems and financial penalties.
The risks of non-compliance
There are a number of risks associated with non-compliance, including financial penalties, reputational damage, and possible jail time.
Companies that fail to comply with regulations can be subject to heavy fines. This can have a significant impact on a company’s bottom line.
Non-compliance can also damage a company’s reputation. For example, if a company is found to be flouting environmental regulations, it could lose customers who care about sustainability.
Finally, in some cases, individuals who contravene regulations may be liable for jail time. This is particularly true for serious offences such as money laundering or fraud. In short, the risks of non-compliance should not be taken lightly.
Incorporating your company in Singapore is a great way to get started in the business. After you incorporate your company you need to appoint a statutory auditor and file annual returns. You also need to comply with the requirements of the Companies Act and the Singapore Exchange.
