Five things that can land your firm in trouble with ACRA
ACRA is the national regulator of business entities, public accountants, and corporate service providers in Singapore. Their role is to achieve synergies between the monitoring of corporate compliance with disclosure requirements and regulation of public accountants performing a statutory audit.
Here is a list of issues that could land your company in trouble with ACRA, so your company knows which areas to pay special attention to.
- Failure to Update Statutory Records
Audit firms in Singapore must maintain their Statutory Records. This is to testify that the firm is a lawful organization that can substantiate claims of share allocation and other information involving the firm’s secretary, directors, and shareholders. It is also mandatory for firms to constantly update these records and inform ACRA should there be any structural changes.
Some of the Statutory Records are:
- Register of Directors, CEOs, Secretaries, and Auditors
- Register of Director’s and CEO’s Shareholding
- Register of Substantial Shareholders
- Register of Members
- Register of Debenture Holders
- Register of Charges
Failure to update these records could result in a fine of up to $5,000 per violation.
2. Failure to File Company Changes to ACRA
Structural changes in auditing firms in Singapore are required to be reported to the ACRA within 14 days of enactment. Such changes could be in the directors, business activities or company name. These changes are required to be filed to the ACRA within 14 days, to avoid consequences from lack of compliance.
3. Failure to Hold Annual General Meetings (AGMs)
To fulfill annual filing requirements, auditing firms in Singapore are required to hold AGMs at least once a year, to present the previous year’s financial statements and director’s report. The firm is required to inform shareholders of the meeting venue and resolutions to be passed, in order to hold an AGM. Should the firm fail to hold the AGM, the firm and its officers may be required to pay a fine of up to $5,000 per violation.
4. Failure to File Annual Returns with ACRA
Auditing firms in Singapore are also required to file an Annual Return with the ACRA within 30 days of holding its AGM. The company secretary is obliged to oversee the preparation of necessary documents, and the director is responsible for ensuring the accuracy of the information in the Annual Return. Failure to file Annual Returns with the ACRA could leave the firm and its officers liable to a fine of up to $5,000 per violation.
5. Filing Inaccurate Statements
Auditing firms in Singapore must ensure that all documents filed are accurate. Inaccurate statements filed to the ACRA could result in a fine of up to $50,000 or a maximum 2-year prison sentence, or both.
Hence, it is crucial for auditing firms in Singapore to adhere to ACRA’s regulations. Contact OneStop Professional Services for excellent company secretary services that will aid you in filing your Annual Returns, ensuring your compliance with ACRA’s regulations.