Singapore incorporated companies will be assessed on the requirement for audit based on the “small company concept”.
A company qualifies as a “small company” if the following are met:
- It is a private company in the financial year in question
- It meets at least two out of three of the following quantitative criteria
- Total annual revenue is less than or equals to SGD10 million
- Total assets are less than or equal to SGD10 million
- Number of employees are less than or equal to 50
For a company which is part of a group, in order to qualify for an audit exemption:
- The company must qualify as a “small company” and
- The entire group must be a “small group”
A group is considered a small group if it meets at least 2 of 3 of the quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.
The above “small company” audit exemption only applies to Singapore incorporated companies. However, for the purposes of determining whether the Group to which a company belongs is a “small group”, all entities within that group are taken into account, including foreign entities, in determining whether the consolidated total revenue, total assets and number of employees of the group meet the thresholds.
At Sheltons Accountants Singapore we have extensive experience in setting up and administering operations for overseas-based businesses. We provide a broad range of services, from setting up the entity and opening a bank account, to providing the legally required local director and a full range of tax, accounting, company secretarial and administrative services.
We are also experienced in providing local and international tax advice, advice on tax treaty issues and cross-border tax efficient structures.