With Effect from December 2015, the penalties for non compliance of annual filing requirements have been increased manifold. New increased penalties for non compliances as well as sequence of penal actions taken against the directors of the company are as under:
- Court summons: ACRA will issue a court summons to the directors of the defaulting company if there has been delays since the due date for annual return filings for the company.
- Warrant of arrest: Courts may issue warrants of arrest against the defaulting directors if the directors do not show up on summons date or if the honourable judges are of the opinion that there has been unreasonable delays without explanation.
- Debarment: Under the amended laws, now ACRA has powers to debar directors and secretaries of the company to accept any new appointments as officers of any other company, if the first mentioned company is not in compliance of annual filing requirements.
The amount of financial penalties depends up on the number of provisions (sections under Companies Act) the company is in breach of, as the law prescribes separate penalties for separate sections.
Sec 175 requires the AGM to be held every calendar year and within 15 months of last AGM (18 months of incorporation, if the AGM is first AGM after incorporation)
Section 201 requires the AGM to be convened within 6 months from Financial Year End.
Below are the exact amount of financial penalties:
- Filing before Annual return deadline- No Penalties.
- Default period but Legal action has not started- S$300 if the company is in breach of one section and S$600 if the company is in breach of two sections.
- If the court summons have been issued- S$600 if the company is in breach of one section and S$1200 if the company is in breach of two sections.
- If the warrant of arrest has been issued- S$900 if the company is in breach of one section and S$1,800 if the company is in breach of two sections.
Please note that the legal actions are in addition to financial penalties.
In order to understand the compliance requirements better for your Singapore company, you may refer to my blog post about Annual compliance calendar for Singapore companies.
You may fill in the contact form below if you need any clarification or you wish to take up professional services for compliance with annual filing requirements of your Singapore Company.