Short answer: A Singapore private company is exempt from audit as a small company if it meets at least two of three criteria for the two financial years immediately before: revenue of S$10 million or less, total assets of S$10 million or less, and 50 or fewer employees. A new company can qualify from its first or second year. If it belongs to a group, the whole group must also pass the same test. Check your company below.
Frequently asked questions
How does audit exemption work in a company's first year?
A company that has not reached its third financial year is a small company from its first financial year if it is private throughout that year and meets 2 of the 3 criteria for that year. If not, it can qualify from its second year by meeting 2 of 3 criteria for the second year.
Once my company is small, does it stay small?
Yes, until it stops being a private company, or until it fails to meet 2 of the 3 criteria for each of the 2 consecutive financial years immediately before the year in question.
My company is a subsidiary. What changes?
The company must be a small company and the whole group, including foreign entities, must be a small group, using consolidated (or aggregated) revenue, total assets and employee numbers.
Is there an exemption for dormant companies?
Yes. Section 205B of the Companies Act exempts a dormant company from audit, and this is not limited to private companies. A company is dormant when it has no significant accounting transactions in the financial year.
Sources
- https://www.acra.gov.sg/manage/companies/legal-requirements-common-offences/preparing-financial-statements/audit-exemptions/
- https://sso.agc.gov.sg/Act/CoA1967?ProvIds=Sc13-
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