'2025 Singapore Company ACRA Annual Compliance Guide: Key New Regulations and Zero-Penalty Strategies'

Singapore's robust legal environment and efficient regulatory system continue to attract global investors, with annual compliance serving as the core element for maintaining a company's legal existence. According to Singapore's Companies Act, all private limited companies (including dormant companies) must fulfill their obligations to hold Annual General Meetings (AGM) and submit Annual Returns (AR). In 2025, with the full implementation of the Corporate Service Providers Act (CSP Act) and upgraded ACRA regulations, the compliance process has undergone significant reforms. This article systematically analyzes key milestones, new regulatory impacts, and practical strategies to help companies avoid risks and optimize compliance costs.

I. ACRA Annual Compliance Core Framework and Key Changes in 2025

Singapore company annual compliance revolves around two core elements: AGM (Annual General Meeting) and AR (Annual Return):

• AGM: Directors report audited/unaudited financial statements to shareholders and resolve major matters (such as director appointments and dividend distributions).
• AR: Electronic filing submitted to ACRA after AGM, updating key information such as directors, shareholders, registered address, and share capital to ensure accurate public records.

Major Regulatory Upgrades in 2025

1. Mandatory CSP Registration
   All entities providing company registration and annual report services must be registered with ACRA, or face penalties of up to SGD 50,000 fine or 2 years imprisonment.
2. Video Identity Verification (Video KYC)
   From June 9, 2025, when handling AR and other services, CSPs must verify the following persons' identities through real-time video:
   → At least 1 actual director (not nominee)
   → Shareholders holding ≥50% voting rights or their authorized representatives.
   Video recordings and supporting documents must be retained for at least 5 years to strictly control identity fraud and money laundering risks.

II. Key Timeline and Late Penalty Details

Compliance Timeline for Non-Listed Companies (Using December 31, 2024 Financial Year End as Example):

• AGM Deadline: June 30, 2025 (within 6 months after financial year end).
• AR Submission Deadline: July 31, 2025 (within 1 month after AGM).

Note: Newly incorporated companies must hold their first AGM within 18 months, with subsequent intervals not exceeding 15 months.

Escalating Consequences for Late Compliance:

• Fines: ACRA system automatically calculates penalties, SGD 300 for the first month, increasing monthly thereafter.
• Legal Action: Long-term violators may be prosecuted by ACRA, with directors bearing personal liability.
• Reputation Damage: Non-compliance records are publicly searchable, affecting bank loans, government tenders, and customer cooperation.

Table: ACRA Annual Compliance Key Deadlines and Penalty Standards

III. Step-by-Step Compliance Process and Document Checklist

Step 1: AGM Preparation and Conduct

• Financial Statement Preparation: Prepare English financial statements according to Singapore Financial Reporting Standards (SFRS). Audit exemption available if meeting 2 of 3 criteria:
  → Annual revenue ≤ SGD 10 million | Total assets ≤ SGD 10 million | Employees ≤ 50.
• Meeting Execution: Hold offline/online meeting, review financial statements, pass resolutions (e.g., dividend distribution), maintain meeting minutes.

Step 2: AR Submission and XBRL Format Conversion

• AR Content: Update basic information including directors, shareholders, secretary, and registered address.
• Financial Statement Submission: Except for dormant companies, statements must be converted to XBRL format (machine-readable tags) and uploaded via BizFile+ system.

Step 3: Related Tax Filing (IRAS)

• Submit Estimated Chargeable Income (ECI) within 3 months after financial year end.
• Submit Corporate Income Tax Return (Form C-S/C) by November 30 each year, even for zero income.

Required Document Checklist:

1. Company Registration Certificate
2. Financial Statements (Balance Sheet/Income Statement/Cash Flow Statement)
3. Shareholder Register and Director Declarations
4. Bank Statements and Transaction Records
5. Employee Payroll Annual Summary

IV. Risk Avoidance and Professional Collaboration Recommendations

High-Risk Areas Alert:

• Missing Video KYC: Under 2025 new regulations, failure to conduct real-time verification will result in filing rejection.
• Delayed Information Updates: Failure to report director/shareholder changes to ACRA within 14 days triggers fines.
• Confusing AR with Tax Filing: AR addresses basic company information; tax filing requires separate submission to IRAS - both are independent and mandatory.

Professional Service Value:

• Timeline Management: Agencies monitor deadlines to avoid late filing.
• Document Compliance: Ensure financial statements comply with SFRS, accurate XBRL tagging, reducing ACRA review risks.
• New Regulation Adaptation: Licensed CSPs familiar with video KYC procedures, maintaining legal recordings.

Conclusion

Singapore has become a global business hub through transparent and efficient regulation, with annual compliance serving as the cornerstone of maintaining this reputation. While 2025 new regulations enhance verification requirements, companies can achieve zero-penalty compliance through advance milestone planning, matching exemption criteria, and leveraging licensed CSPs.

Ultimate Recommendations:

• Immediately initiate financial statement preparation at financial year end, allowing 2-month buffer;
• Select MAS or ACRA certified service providers to simultaneously handle GST filing, EP passes, and other needs;
• Establish internal calendar reminders and annually review ACRA policy update pages.

Compliance is not a cost but a trust credential for sustainable operations of Singapore companies. Finding certainty within regulations is the essence of international business wisdom.