Audited or Unaudited Accounts
Singapore companies are required to file audited or unaudited accounts. For financial years starting on or after 1 July 2015, dormant companies and companies that meet the “small company” criteria are not required to audit their financial statements. This is provided for under the Companies Act.
(1) A company qualifies as a “small company” if:
A. It is a private company for the financial year in question (i.e. it is owned by 50 members or less); and
B. It meets at least 2 of the following 3 quantitative criteria for immediate past two financial years: a. total annual revenue ≤ $10m b. total assets ≤ $10m c. no. of employees ≤ 50
(2) For a company which is part of a group to qualify for audit exemption:
A. the company must qualify as a small company; and B. entire group must be a “small group”
(i.e. the group must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past 2 consecutive financial years.)
For financial years starting before 1 Jul 2015, dormant companies and exempt private companies with revenue not more than S$5m are not required to audit their financial statements.