Common Compliance Mistakes New Companies Make in Singapore (And How to Avoid Them)

Why Compliance Matters From Day One

Singapore is globally respected for its clean and efficient business environment. But this reputation is upheld by strict corporate compliance regulations. While setting up a business here is easy, staying compliant can be a challenge — especially for first-time entrepreneurs and foreign owners unfamiliar with local laws.

Failure to meet statutory obligations may lead to fines, director disqualification, or reputational damage. This article highlights the most common compliance mistakes made by new companies — and how to avoid them.

1. Delaying the Appointment of a Company Secretary

Mistake:
New companies often forget to appoint a company secretary within 6 months of incorporation — a legal requirement under the Companies Act.

Consequence:
Penalties and potential issues during ACRA filings.

Solution:
Appoint a qualified company secretary from the start. We provide professional secretarial services to ensure full compliance.

2. Missing Annual Return Filing Deadlines

Mistake:
Failing to hold the Annual General Meeting (AGM) or file the Annual Return with ACRA within 6 and 7 months respectively after the financial year-end.

Consequence:
Late fees, legal action, and reputational damage.

Solution:
Mark filing deadlines in advance or engage us for annual return tracking and timely submission.

3. Not Registering for GST on Time

Mistake:
Overlooking the need to register for GST once annual taxable turnover exceeds S$1 million, or opting to delay registration.

Consequence:
Backdated GST liabilities, penalties, and interest charges from IRAS.

Solution:
We monitor your revenue and advise on timely GST registration and filing.

4. Inadequate Bookkeeping

Mistake:
Using inconsistent or manual accounting practices with no clear documentation of transactions.

Consequence:
Errors in financial statements, tax filing issues, or audit risks.

Solution:
We offer cloud-based accounting with Xero or QuickBooks setup and monthly bookkeeping.

5. Late or Incorrect Corporate Tax Filings

Mistake:
Missing key tax deadlines such as the Estimated Chargeable Income (ECI) within 3 months of FYE or corporate tax returns.

Consequence:
Fines, tax audits, and IRAS scrutiny.

Solution:
Our tax team handles ECI and Form C/C-S filings accurately and on time.

6. Assuming Dormant Companies Are Exempt From All Filing

Mistake:
Believing dormant companies don’t need to file anything with ACRA or IRAS.

Consequence:
Non-compliance notices and penalties despite having no transactions.

Solution:
We ensure minimal but required filings are handled, even for dormant entities.

7. Ignoring Work Pass or Nominee Director Obligations

Mistake:
Foreign owners may assume they can manage a company without a local director or delay applying for a valid work pass.

Consequence:
ACRA rejection or legal non-compliance.

Solution:
We provide nominee director services and assist with Employment/EntrePass applications.

8. Poor Record-Keeping for Tax and Audit

Mistake:
Not retaining key records like invoices, receipts, and financial reports for the mandatory 5-year period.

Consequence:
Non-compliance and complications during audits or grant applications.

Solution:
Our structured accounting systems ensure proper documentation and IRAS-ready records.

How Excellence Singapore Helps You Stay Fully Compliant

We offer end-to-end support for new and growing companies, including:

Company secretary and annual filing services
Bookkeeping, tax filing, and GST submission
Payroll and CPF setup
Nominee director and virtual office services
Compliance reminders and regulatory advisory

Our all-in-one approach means fewer moving parts — and no compliance surprises.

Conclusion: Build a Business That Lasts

In Singapore, the difference between a successful business and one facing fines or suspension often comes down to compliance discipline. Avoiding these common mistakes sets the foundation for long-term success.