Singapore Company FAQs - Accounting

Q1. Must my accounting staff be qualified?

A. It is not a mandatory requirement for accounting staff to be qualified. However, for established companies, it is a good practice to hire qualified accountants so that the accounting standards can be maintained.

Q2. Who are responsible for the accuracy of my company’s accounting records?

A. All directors of the company are responsible for the records, regardless of whether they are involved in the operations or otherwise.

Q3. Can my accounting records be kept manually?

A. Yes, there is no mandatory requirement for accounting records to be computerized.

Q4. If my company’s paid up share capital is $50,000, must I maintain this amount in the bank?

A. It is not necessary to maintain the full amount corresponds to your paid-up capital in your bank. However, you are required to contribute the full amount of registered capital at the time of incorporation. You then can free use the registered capital for daily operation of the company.

Q5. How long do I have to keep my accounting records?

A. Under section 1989 (2) of the Companies Act, all accounting documents must be retained for a minimum of seven (7) years.

Q6. What will happen if my accounting records are incomplete?

A. The auditors will usually qualify the audit report; this means that they will report to the shareholders that the accounting records are incomplete. If the impact of the missing records is material (most records cannot be found), the auditor will state that they cannot express an opinion on whether the accounts presents a true and fair view of the financial position of the company.

For tax purposes, the IRAS may query the company on why the accounting records are incomplete. In addition, IRAS may discretionarily charge an estimated tax amount on the company in a manner that they see fit, under the circumstances.

Q7. Can I change the accounting year-end of my company?

A. Yes, you can always change the accounting year-end, but it must be approved and resolved at a director’s meeting. No approval from ACRA or IRAS is required for change of accounting year-end.