How to Avoid Fines: Common Compliance Pitfalls in Singapore Running a business in Singapore comes with clear rules — and little flexibility when it comes to mistakes. Fines aren’t rare, and many of them are preventable. But businesses, especially smaller ones, often miss simple requirements because they’re busy, unsu re, or think something doesn’t apply to them. If you're running a company here, these are the most common compliance traps. More importantly, here's how to avoid them. Filing Deadlines: Often Missed, Always Penalised The most frequent issue? Missing important filing dates. Singapore companies must submit annual returns to ACRA and tax returns to IRAS. These aren’t optional or flexible. A day late still counts as late. The annual return usually needs to be filed within seven months of your company’s financial year - end. The corporate income tax return? That’s due every November. Missing either can lead to late penalties — and repeated delays can lead to more serious consequences, including court summons. If dates tend to slip through the cracks, don't leave it to memory. Mark your calendar. Set reminders. Better yet, work with corporate secretarial services that handle this for you — so you don’t have to think about it. No Secretary? That’s a Problem Many business owners assume the company secretary is just a formality. It’s not. Singapore law requires every company to appoint a qualified secretary within six months of incorporation. The secretary’s job isn’t just filing papers. They make sure the company stays legally compliant — by recording changes, preparing resolutions, and submitting mandatory documents. Skipping this step or assigning it to someone without the right skills creates risk. If filings aren’t done properly or updates aren’t recorded, your company could face penalties. Professional secretarial services can handle this, especially if no one on y our team has the time or background to manage it. Company Changes? You Need to Tell ACRA Any update to your company — whether it’s a change in address, a new director, or new share issuance — must be reported to ACRA, usually within 14 days. This rule is often overlo o ked, especially by businesses going through quick changes. It’s not just about keeping records clean. If ACRA finds out you didn’t update them on time, fines follow. Worse, if something goes wrong and your records don’t match reality, liability can fall on the directors. Make it a habit: any time there’s a structural change, notify your secretary or service provider immediately. Quick updates keep you compliant. Poor Record Keeping Can Hurt Singapore law requires companies to maintain a number of key records: registers of shareholders and directors, minutes of meetings, and official resolutions. Many companies, especially startups, neglect this — because it seems unnecessary in the early days. But when the need arises — like during audits, funding rounds, or disputes — missing records can cause real damage. ACRA also has the authority to inspect your records. If they’re missing or outdated, you’re in breach. Having someone responsible for maintaining these documents is critical. If you're stretched thin, outsource it. That’s where secretarial services often prove useful — they keep everything in order, so you’re not scrambling later. Confusion Around AGMs Not every company needs to hold an Annual General Meeting. But many assume they’re exempt without checking the details. For instance, private companies can skip AGMs only if they send financial statements to shareholders within five months of the financial year - end. If that doesn’t happen, an AGM is still required. Missing this obligation is a technical offence. It won’t always lead to an immediate fine, but if it becomes a pattern, ACRA may step in. To avoid confusion, ask your secretary to confirm whether your company qualifies for AGM exemption each year. Don’t assume. The rules can shift depending on what you did (or didn’t do) the previous year. Tax Assumptions That Backfire One common belief: “If I didn’t make a profit, I don’t need to file taxes.” Not true. Even dormant companies or those with no income must file returns. It’s part of staying registered and compliant. IRAS expects annual tax filings regardless of profitability. Ignoring this can lead to penalties and even forced deregistration over time. If you’re unsure how to handle this, speak to your accountant — or a secretary familiar with tax compliance. Filing a return with zero income still counts as proper filing. Addresses Matter More Than You Think Your business must have a valid registered office address. This address must be in Singapore, not a P.O. box, and must be accessible for at least three hours during each business day. If your company uses a home address but doesn’t meet the accessibility r equirement, that’s a violation. If ACRA or IRAS can’t reach you, you may miss legal notices or filing reminders — which can lead to fines or compliance breaches. For businesses without a permanent physical office, many corporate secretarial services offer registered address solutions that meet legal standards. Doing It All Yourself — Without Understanding the Rules Some founders try to save money by managing everything on their own. It works for a while — until it doesn’t. Filing the wrong form, missing a required update, or skipping a deadline can undo months of hard work. Worse, fixing compliance issues after the fac t often costs more than doing it right from the start. If you don’t have the time or legal understanding to stay on top of filings, records, and updates, outsource it. That’s not just delegation — it’s risk management. Final Thought Compliance in Singapore isn’t hard — but it’s exact. The system is clear and structured. It’s designed for businesses that stay organised and take their responsibilities seriously. Most fines come from small oversights, not major violations. If you're running a business here, especially a small one, take a step back and check your basics. Is your filing on time? Are your records updated? Do you have the right support in place? Don’t wait for a penalty notice to realise something was missed. Get it right early. And when in doubt, lean on the people who do this every day — whether it’s your in - house team or professional corporate secretarial services