Consequences Of Failure To File Annual Returns

What does the Act say?

In accordance with Section 197 of the Companies Act, all companies need to file their annual returns on time. Failure to file annual returns will result in a Singapore Dollar SGD $300 late lodgement fee. This $300 late lodgement fee will be payable when the company files the annual return. Do note that this is just for late annual return filing.

If the Annual General Meeting (AGM) is held late, the company will also be in breach of Section 175 of the Companies Act and will also be liable for another penalty fee.

Accounting and Corporate Regulatory Authority (ACRA) may also offer a fine to companies and/or directors to compound the offence in lieu of prosecution. The minimum composition fine for breaches of Section 175 and Section 197 of the Companies Act are both SGD$500 each.

If a company continually breaches these requirements, it can be struck off from the register. The directors can be disqualified from acting as a director of companies if he or she has three or more companies struck off by ACRA within a period of 5 years, as stated in Section 155A of the Companies Act.

If you are unsure of the filing requirements of companies, you may refer to this article:

Singapore Companies Filing Requirements

Remember that failure to file your company’s annual returns can have very dire consequences.

Here is an article about the Important Compliance Requirements for Singapore Companies.

When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.

Yours Sincerely,
The editorial team at SG Company Services.

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