The rule in plain words
A private company in Singapore is a small company if it meets at least two of these three tests in two consecutive financial years:
| Test | Limit |
|---|---|
| Total annual revenue | Not more than S$10 million |
| Total assets | Not more than S$10 million |
| Number of employees | Not more than 50 |
A small company does not need a statutory audit. A new company is tested on its first financial year. A company that belongs to a group qualifies only if the group meets the same tests. The source is the Companies Act 1967.
Worked examples
Assume the same figures in both of the last two financial years.
| Company | Revenue | Assets | Staff | Result |
|---|---|---|---|---|
| A | S$4.2m | S$3.1m | 18 | Exempt. It meets all three tests. |
| B | S$12m | S$6m | 40 | Exempt. It meets two tests (assets and staff). |
| C | S$11m | S$9m | 60 | Needs an audit. It meets only one test (assets). |
Run your own numbers with our free audit check on the home page. It gives a quick answer. Confirm the result with us before you rely on it.
What an exempt company must still do
- Keep proper accounting records and prepare financial statements that give a true and fair view.
- File the annual return with ACRA. Most private companies file within 7 months after the financial year end.
- File the corporate tax return with IRAS. Audit exemption does not change your tax filing.
- Hold the required registers, resolutions and records of the company.
When you may still want an audit
- Your bank or lender asks for audited accounts.
- An investor, a landlord or a shareholder asks for one.
- You apply for a grant, a licence or a tender that needs audited accounts.
- You want an independent check on your numbers before a sale or a fundraising.
Check before you rely on the exemption. Special rules apply to some companies, for example those that are regulated or licensed. If your company has a foreign parent or group, the group tests apply. Ask us if you are unsure.
Common questions
Does the exemption apply to my first year?
A new company is tested on its first financial year. If it meets two of the three tests in that year, it is a small company.
Can an exempt company choose to have an audit?
Yes. A company can appoint an auditor even when the law does not require one.
Does exemption from audit also remove the need to file with ACRA?
No. The company still files its annual return and keeps its records. The audit is the only part that falls away.
Does it change my tax filing?
No. You still file the tax return with IRAS. See our corporate tax page.
Next step
Not sure whether you qualify? Send us your revenue, total assets and headcount for the last two years. We tell you whether you need an audit. If you do, see our audit services.