Exemption for Audit PRIVATE Limited Companies

Singapore Government has amended the companies act that exempts Private limited companies from Auditing the accounts. This will help many companies reduce their operating cost.

The Companies (Amendment Bill 2015)

Removal of legal requirement of audit

How to Qualify for Audit Excemption

  • It is a Private Exempt Company ("EPC"), EPC means no corporate shareholder in the company and the number of shareholders in the company is not more than 20 members.
  • Annual revenue of the company must not exceed the turnover threshold limit as at :
    • Financial year starting from 15 May 2003 - Annual turnover does not exceed S$2.5m
    • Financial year starting from 1 June 2004 - Annual turnover does not exceed S$5m
  • Dormant companies ( ie. Those with no significant accounting transactions)
  • Banks or other creditors/financial Companies do not require auditing.

Director's Obligation under the New Law

The Directors' Report and Accounts include :

  • Report of the Directors
  • Statement of Directors
  • Unaudited Balance Sheet
  • Unaudited Profit & Loss
  • Statement of changes In equity
  • Statement of cash flows
  • Disclosure notes with respect to the Financial Reporting Standards ("FRS") and Companies Act to financial report

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