And here is why:
Reporting once a year.
That is much better option than reporting on a quarterly basis.
Flexible financial year end date.
This is important for new companies as they need time to start generating revenue.
Making the first financial year's length more than 12 months helps win time before the entity needs to spend on accounting.
To extend duration of financial year for up to six months you need to file directors' resolution with ACRA.
The Company requires the Registrar's approval if the change in the financial year end date results in a financial year of more than 18 months
Exemption from audit.
Audit is compulsory in Singapore.
However, small companies enjoy audit exemption.
To qualify as a small company, a Singapore private company should meet at least two of three following criteria for the two consecutive financial years immediately preceding the current one:
- Total annual revenue is less or equal to ten million Singapore Dollars;
- Total assets are less or equal to ten million Singapore Dollars;
- Number of employees less or equal to fifty.
Meeting two of three criteria allows to qualify for audit exemption the following businesses:
- A trading company with high revenue, but with small assets and headcount;
- A holding company with large assets that are managed by a small team and generate revenue of less than ten million Singapore Dollars per annum;
- Businesses that need bigger teams, but their revenue and assets fall under ten million Singapore Dollars threshold.
Exemption from audit means less costs for the business, so it increases efficiency.
Sounds like another reason to start a company for international business in Singapore, doesn't it?
