Your company turned over S$11.2 million last year and employs 42 people. Year end is close, and you wonder whether an audit bill is coming.
The answer sits in a short test in the Companies Act. Many owners pass without knowing. Others assume they pass and learn the truth at filing time.
The small company test
A private company counts as a small company when the company meets at least two of three limits:
- Total annual revenue of S$10 million or less
- Total assets of S$10 million or less
- 50 full-time employees or fewer at year end
You need two of the three in each of the last two financial years. A new company under two years old is tested on its current year only.
Pass and you are exempt from audit. You still keep proper accounting records, prepare financial statements under the Singapore accounting standards and file with ACRA. Exemption removes the auditor. The duty to produce accounts stays.
A worked example
Take a trading company with these figures.
Year 1: revenue S$11.2 million fails, total assets S$8.5 million pass, 42 employees pass. Score: 2 of 3.
Year 2: revenue S$10.6 million fails, total assets S$9.1 million pass, 46 employees pass. Score: 2 of 3.
Both years score 2 of 3, so the company is a small company and needs no audit, even with revenue above S$10 million.
Now change Year 2. A large equipment purchase lifts total assets to S$10.4 million, and hiring takes staff to 52. Revenue of S$10.6 million fails, assets fail and employees fail. Score: 0 of 3. One weak year does not end your status, because you lose exemption only after failing in two consecutive years. Plan ahead, though. A second weak year brings the audit.
Groups need extra care
If your company sits inside a group, the whole group must also meet two of three limits. ACRA measures revenue and assets on the holding company’s consolidated accounts and counts foreign entities. A small Singapore subsidiary in a large group often needs an audit.
Rules under review
ACRA announced a review in February 2026 and plans to consult on higher revenue and asset limits. The pages I checked show no new figures in force, so the S$10 million limits above apply today. Check the ACRA page again before you rely on them.
Audit exemption does not change your tax filing. Form C-S is still due on 30 November. Lenders, landlords and investors also ask for audited accounts at times, whatever the Companies Act says.
Read more on our audit exemption page: https://www.cschow.com.sg/audit-exemption-small-company-singapore/
This article gives general guidance and does not replace advice on your own company. If you want us to check your figures against the test, send us your last two years of accounts. We quote by scope after we see the facts.
WhatsApp Henry on +65 9876 3553 or email henry@cschow.com.sg.
Henry Chow
Public Accountant
C S Chow & Co