Variations in Statutory Requirements

Private limited companies are further divided into two categories, namely an exempt private company (EPC) and a private company. Most companies fall under the category of an EPC, which has simplified procedures relating to its accounts (financial statements) and ability to provide loans to its directors.

The illustration below is an example of the differences, as well as the conditions of a small company to be exempt from audit requirements.

Exempt Private Limited Companies are no longer required to file their accounts with ACRA, although they may elect to do so. However, this does not mean that the Company need not prepare its financial statements, as it is still a legal requirement to do so. More information here. For companies requiring to file accounts to ACRA, they need to be filed in XBRL format.

Dormant Companies are however not required to prepare nor audit their financial statements, if it fulfils the criteria set out in the Companies Act. More details can be found here.

Companies can engage our services to prepare their financial statements if they qualify as a small company/ group. Otherwise, they will have to engage an auditor to prepare and audit their financial statements. 

Useful links

ACRA - Find out more about company related information. Click here.

IRAS - Find out more about corporate taxes, GST registration and requirements. Click here.

MOM - Find out more about employment guidelines and the processes involved. Click here.

CPF - Find out more about paying CPF contributions as employers, or medisave contributions for self-employed individuals. Click here.