Concept
Singapore companies are required to maintain financial statements under the Singapore Financial Reporting Standards (SFRS) and file them annually with the Accounting and Corporate Regulatory Authority (ACRA). Not all companies require an audit — a "small company exemption" applies: a company is exempt from audit if it meets at least 2 out of 3 criteria for the two most recent financial years.
Financial statements are prepared in any case: even if a company is exempt from audit, it must prepare and file with ACRA a set of mandatory financial documents.
When audit is required
Audit is mandatory if for the two most recent financial years the company meets two out of three criteria:
- Total revenue exceeding S$10 million
- Total assets exceeding S$10 million
- Number of employees exceeding 50 persons
Audit is also mandatory for:
- Public companies (even if below thresholds)
- Subsidiaries of public corporations
- Financial companies regulated by MAS
If all three criteria are below the threshold — the company prepares only unaudited financial statements for filing with ACRA.
Documents for the auditor
- General ledger and transaction journals for the financial year
- Bank statements for all company accounts
- All invoices — issued and received
- Contracts with key counterparties
- Register of directors and shareholders (if changed)
- Prior year audit report or unaudited statements
Cost
| Service | Cost |
|---|---|
| Full audit (companies above the small-company threshold) | quoted on request — Singapore market range for SME audits is roughly S$2,500–S$10,000, complex or group audits from S$12,000 (market reference, as of 2026) |
| Financial statements without audit (unaudited statements) | €1,200 |
Market ranges above are external reference points as of 2026, not a price list — the final quote depends on turnover, transaction volume and group structure.
Timeframes
- Unaudited statements — 2–3 weeks after closing of the financial year.
- Full audit — 4–8 weeks depending on volume and complexity.
- The financial year in Singapore is determined by the company itself upon registration — usually coincides with the calendar year.
What needs to be done alongside reporting
Financial statements are only part of annual compliance in Singapore. In parallel, the company must:
- File Annual Return with ACRA with updated structural information
- File Estimated Chargeable Income (ECI) with IRAS within 3 months of the end of the financial year
- File Corporate Income Tax Return (Form C/C-S) with IRAS by 30 November
- Hold Annual General Meeting within 6 months of the end of the financial year
Risks and penalties: ACRA and IRAS
Compliance misses in Singapore escalate in stages — an automatic late fee first, then a composition sum, then court.
- ACRA — late Annual Return. The late lodgement penalty is charged at the point of filing: S$300 if filed within 3 months of the deadline, S$600 if later (as of 2026). Continued non-filing can bring a composition sum of around S$500 in lieu of prosecution; on conviction the court fines per charge, and after several consecutive years of non-filing ACRA can strike the company off the register. Directors with repeated filing convictions risk disqualification from acting as directors for up to 5 years.
- IRAS — late ECI and Form C/C-S. A late ECI lets IRAS issue an estimated Notice of Assessment on its own figure — the company pays on that estimate first and objects afterwards. A late corporate income tax return triggers a composition amount (typically S$200–S$1,000 for a first offence, up to S$5,000 per offence), with prosecution for repeat non-filing. Assessed tax left unpaid adds a 5% late payment penalty.
- AGM. Not holding the Annual General Meeting within the statutory window is a separate Companies Act offence, with fines for the company and every officer in default.
Q/A
When is a Singapore private company exempt from statutory audit?
It must be a private company and meet at least two of three tests for each of the two preceding financial years: annual revenue not above S$10 million, total assets not above S$10 million, and no more than 50 employees. A new company applies the same two-of-three test to its first financial year.
Can a subsidiary use the small-company exemption on a stand-alone basis?
Not by itself. Where the company is part of a group, the company must qualify as a small company and the group must qualify as a small group on a consolidated basis. The analysis therefore needs the group’s revenue, assets and employee count, not only the Singapore subsidiary’s own figures.
Does audit exemption mean that financial statements are unnecessary?
No. Audit exemption removes the statutory audit requirement; it does not generally remove directors’ duties to keep accounting records and prepare financial statements that comply with Singapore requirements. Filing exemptions are a separate question and depend on the company’s category and circumstances.
Can shareholders require an audit even if the company is exempt?
Yes. ACRA states that shareholders holding at least 5% of the company’s total issued shares may require an audit by giving the prescribed notice. Directors should therefore check shareholder rights and any contractual audit covenant before treating the statutory exemption as the final answer.
Does an audit exemption remove ACRA annual-return or IRAS tax-filing duties?
No. The exemption concerns audit only. The company must still assess its annual-return and financial-statement filing position with ACRA and its corporate tax obligations with IRAS, including the applicable Estimated Chargeable Income and corporate income tax return rules. Dormancy and filing waivers are separate tests.