As a business owner, understanding the implications of ACRA late filing penalties is crucial for maintaining the integrity and efficiency of your operations. In this comprehensive guide, we delve into the intricacies of ACRA and shed light on various aspects of late filing penalties.
What is ACRA (Accounting and Corporate Regulatory Authority)?
Established on 1 April 2004, ACRA serves as the guardian of financial reporting, business registration, and the oversight of corporate service providers. With a mission to foster a trusted and vibrant business environment, ACRA plays a pivotal role in setting accounting standards for entities ranging from companies and charities to cooperative societies.
13 Types Of Common Offenses & ACRA Late Filing Penalty
Compliance with ACRA regulations is not just a legal requirement; it is the foundation for a robust and trustworthy business. Failure to adhere to specific provisions outlined by ACRA can result in penalties. Let’s explore some common offenses and their corresponding penalties:
1. Failure to have a Registered Office Address
From its date of incorporation, a company is required to maintain a registered office within Singapore. Non-compliance with this mandate constitutes an offense under section 142(2), leading to the imposition of penalties.
2. Failure to Notify Changes in Office Address
Companies are required to promptly inform the Registrar of any changes within 14 days to their registered office address. Failure to do so results in penalties under section 143(2).
3. Requirement for an Ordinarily Resident Director
Section 145(1) mandates that every company is required to have, at a minimum, one director who is a Singapore resident.
4. Failure to Display Company Name and Registration Number
Non-compliance with the requirement to display the company’s name and registration number leads to penalties under sections 144(1) and 144(1A).
5. Disqualification of Bankrupt Directors
Undischarged bankruptcies are barred from acting as directors, with penalties for contravention under section 148(1).
6. Disqualification on Conviction for Certain Offenses
Directors convicted of offenses involving fraud or dishonesty face disqualification under section 154(1).
7. Disqualification for Persistent Default
Persistent default in delivering documents to the Registrar can result in disqualification under section 155(1).
8. Failure to Notify Changes in the Register of Directors
Companies must notify the Registrar promptly of changes in directors, with penalties for non-compliance within 14 days under section 173H(1).
9. Notice by Disqualified Directors
Disqualified directors can give notice to the Registrar, as outlined in sections 173E(1) and 173E(2).
10. Failure to Hold Annual General Meeting (AGM)
Penalties are incurred for failing to conduct the AGM within the specified timeframe, following Section 175.
11. Failure to Lodge Annual Returns
Non-compliance with the requirement to lodge the Annual Return within the stipulated time frame under section 197 results in penalties.
12. Providing False and Misleading Statements
Willfully making false or misleading statements in documents required by ACRA, as per section 401(2), incurs penalties.
13. Penalty for Operating Business Without Registering a Corporation and Improper Use of Corporate Titles
Using names or titles (“Limited” or “Berhad”) improperly leads to penalties under section 405.
Purpose of ACRA Singapore BizFile+
The ACRA Singapore BizFile+ serves as a vital platform for businesses to fulfill their regulatory obligations efficiently. It is the gateway for various transactions, filings, and information retrieval related to business entities registered in Singapore. From the incorporation of a new company to the filing of annual returns, the BizFile streamlines processes, ensuring transparency and accessibility.
Revision of ACRA Late Filing Penalty for Annual Lodgements
Late filing penalties for annual lodgments vary depending on the entity type and the filing due date. Commencing January 14, 2022, local companies and Variable Capital Companies (VCCs) adhere to a two-tier penalty structure: either $300 within the first three months after the filing due date or $600 after this initial period. Alternatively, a flat rate of $300 applies to filings due before January 14, 2022.
In contrast, foreign companies and Limited Liability Partnerships (LLPs) operate under a similar two-tier penalty system for filings due on or after January 14, 2022: $300 within the initial 3 months or $600 after this period. However, for filings due before January 14, 2022, they encounter a more intricate eight-tier penalty structure, with fines ranging from $50 to $350.
Late Lodgement Fees
Apart from the late filing penalties associated with annual returns, companies and directors may incur late lodgement fees for various statutory obligations. These obligations range from holding an Annual General Meeting (AGM) within a specified timeframe to lodging documents with ACRA promptly.
Late Lodgement Fees for Companies
| Duration of Delay (in Days) | ACRA Late Filing Penalty |
| Not more than 30 days | $50 |
| Between 31 to 60 days | $75 |
| Between 61 to 90 days | $100 |
| Between 91 to 180 days | $150 |
| Between 181 to 365 days | $200 |
| Between 366 to 730 days | $250 |
| Between 731 to 1095 days | $300 |
| More than 1096 days | $350 |
Late Lodgement Fees for Businesses (Sole Proprietorship and Partnership)
| Duration of Delay (in Days) | ACRA Late Filing Penalty |
| Not more than 30 days | $10 |
| Between 31 to 60 days | $25 |
| Between 61 to 90 days | $50 |
| Between 91 to 180 days | $75 |
| Between 181 to 365 days | $100 |
| Between 366 to 730 days | $150 |
| Between 731 to 1095 days | $200 |
| More than 1096 days | $250 |
Late Lodgement Fees for LLPs
| Duration of Delay (in Days) | ACRA Late Filing Penalty |
| Not more than 30 days | $50 |
| Between 31 to 60 days | $75 |
| Between 61 to 90 days | $100 |
| Between 91 to 180 days | $150 |
| Between 181 to 365 days | $200 |
| Between 366 to 730 days | $250 |
| Between 731 to 1095 days | $300 |
| More than 1096 days | $350 |
Late Lodgement Fees for LPs
| Duration of Delay (in Days) | ACRA Late Filing Penalty |
| Not more than 30 days | $50 |
| Between 31 to 60 days | $75 |
| Between 61 to 90 days | $100 |
| Between 91 to 180 days | $150 |
| Between 181 to 365 days | $200 |
| Between 366 to 730 days | $250 |
| Between 731 to 1095 days | $300 |
| More than 1096 days | $350 |
Late Annual Return Fees
Companies must submit their Annual Returns (ARs) as mandated by Section 197 of the Companies Act (CA). A late lodgment fee, acting as an ACRA late filing penalty, is imposed at the time of AR filing and depends on the filing date. According to Section 197, a company faces a $300 late lodgment fee if the AR is filed within the initial 3 months after the due date.
If filed more than 3 months after the AR filing due date, the penalty increases to $600. This penalty framework aims to promote timely compliance with AR filing requirements and promptly address any breaches. The penalties are applicable for filing due dates on or after January 14, 2022.
How We Can Help: Our Company Secretary Service
Navigating the complexities of ACRA compliance requires expertise and attention to detail. At Premia TNC, our experienced and accredited business consultants offer a comprehensive Company Secretary service. From maintaining statutory records to ensuring timely filings, our team is dedicated to supporting your business in meeting its compliance requirements.
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ACRA Late Filing Penalty – FAQs
1. What is ACRA, and why is it important for businesses in Singapore?
ACRA is the regulatory body overseeing financial reporting, business registration, and corporate service providers in Singapore. It is crucial for businesses as it ensures compliance with statutory obligations, fostering a transparent and trustworthy business environment.
2. What are the common offenses that can lead to ACRA late filing penalties?
Several offenses, including failure to have a registered office address, late filing of annual returns, and disqualification of directors for various reasons, can lead to ACRA late filing penalties.
3. What is ACRA Singapore BizFile+, and how does it benefit businesses?
ACRA Singapore BizFile is a platform facilitating various transactions, filings, and information retrieval for businesses in Singapore. It streamlines processes related to incorporation, annual returns, and other regulatory requirements, ensuring efficiency and transparency.
