As Asia’s international financial and business hub, Singapore continues to attract a growing number of Chinese entrepreneurs to set up companies. But registering a company is only the first step—real challenges lie in the ongoing compliance and operational management.

Here are 15 often-overlooked compliance red flags every business owner in Singapore should be aware of. Don’t let a small oversight become a big setback.

01 Improper Registered Address

Every company must maintain a valid registered address in Singapore, where all official correspondence will be sent.

If using a residential address, prior approval from relevant authorities is required. Virtual office addresses must be provided by ACRA-approved service providers.

Any changes must be reported to ACRA within 14 days.

02 No Local Director Appointed

A company must have at least one local director who is a Singapore Citizen, PR, or a holder of an EP, EntrePass, or DP with a Letter of Consent.

The director must be at least 18 years old, mentally competent, not bankrupt, and not disqualified from holding directorship.

03 Failure to Appoint a Company Secretary

A company must appoint a company secretary within 6 months of incorporation, and the position must not remain vacant for more than 6 months.

The secretary must be a natural person residing in Singapore and cannot be the company’s sole director.

For non-listed companies, the secretary must have relevant qualifications or at least 3 years of experience. Listed companies require higher professional credentials.

04 No Designated Data Protection Officer (DPO)

Under the PDPA, all companies must appoint at least one DPO to oversee data protection compliance.

This role can be outsourced or internally assigned, but the appointee must be competent and well-versed in data governance.

Failure to comply can lead to hefty fines and reputational damage.

05 Misuse of Company Name or UEN

Each company is issued a Unique Entity Number (UEN) by ACRA.

Your registered company name and UEN must be clearly displayed on all official documents, websites, email footers, contracts, and platforms.

06 No Proper Statutory Registers Maintained

Companies are required to maintain and update statutory registers including:

● Register of Registrable Controllers (RRC)

● Register of Nominee Directors

● Register of Significant Controllers

These must be updated regularly and made available for regulatory review.

07 Incomplete or Inaccurate Accounting Records

Companies must maintain proper and accurate accounting records in line with the Financial Reporting Standards (FRS), aligned with IFRS.

From 2024, updated audit exemption thresholds apply for small companies—but full records must still be kept for reporting and review.

08 Failure to Submit Annual Return on Time

Non-listed companies must file their annual return with ACRA within 6 months of their financial year-end; listed companies must do so within 4 months.

Late filings can result in penalties unless an extension is requested in advance.

09 Failure to Hold Annual General Meeting 

(AGM)

Unless exempted, companies must hold an AGM within the statutory time after the financial year-end: 6 months for private companies, 4 months for listed ones.

Shareholders must be notified at least 14 days in advance. Virtual meetings are now permitted.

10 Incomplete or Late Tax Filing

All companies must file their taxes with IRAS.

As of 2024, GST has increased to 9%. Companies with annual revenue over SGD 1 million must register for GST.

Corporate tax is a flat 17%, with tax exemptions for qualifying new start-ups during their first 3 years.

11 Violation of Employment Regulations

Companies must comply with the Employment Act and apply for the appropriate work passes (EP, S Pass, WP) based on quotas.

Employers hiring Singapore citizens or PRs must register CPF accounts and contribute monthly (2024: employer 17%, employee 20%).

12 Directors Failing to Disclose Interests

Directors must disclose any interest in transactions involving the company within 72 hours of awareness.

Non-compliance may result in a fine of up to SGD 5,000, disqualification, or up to 12 months‘ imprisonment.

13 Failure to Apply for Sector-Specific 

Licenses

Businesses operating in regulated sectors (e.g., finance, education, healthcare) must obtain the relevant licenses before starting operations.

Most applications are processed within 1–2 months, though special industries may take longer.

14 No Anti-Money Laundering (AML) 

Framework

Companies must implement Customer Due Diligence (CDD) measures and keep transaction records for at least 5 years.

High-risk clients require enhanced due diligence to comply with Singapore’s AML regulations.

15 Unreported Company Changes or Closure

Any significant changes—such as changes in shareholders, directors, or address—must be reported to ACRA in a timely manner.

For company closure, proper procedures like voluntary winding up or striking off must be followed.

📅 Annual Compliance Calendar (Save This!)

✅ Final Thoughts

Singapore offers a highly efficient and transparent business environment—but it also requires companies to meet high compliance standards.

By understanding and avoiding these common pitfalls, you can safeguard your operations, build stronger corporate credibility, and lay a solid foundation for long-term growth!