Introduction

Single Family Offices (“SFO”) in Singapore must meet a variety of statutory and compliance requirements ensure the SFO remains in good standing with regulatory authorities. Here are the key components of the obligations of an SFO in Singapore:

Corporate Secretarial Services:

Engaging a corporate secretary is mandatory. The corporate secretary ensures compliance with corporate governance and regulatory requirements, including the preparation and filing of necessary documents with the various regulatory organisations such as the Accounting and Corporate Regulatory Authority (“ACRA”).

Annual General Meeting (“AGM”):

SFOs are required to hold an AGM within 6 months of their Financial Year End. During the AGM, directors present the financial statements to shareholders.

Annual Return Filing:

Following the AGM, the SFO must file its annual return with ACRA within 1 month of the AGM. The annual return includes details such as the company’s financial statements, shareholding structure, and information on directors and shareholders.

Maintaining Statutory Registers and Records:

The SFO must maintain statutory registers, such as the register of members, directors, and secretaries, and record minutes of board meetings and AGMs.

Financial Statements Preparation and Filing:

The SFO must prepare financial statements in accordance with the Singapore Financial Reporting Standards (“SFRS”). These statements must be audited if the company does not qualify as a small company under the Companies Act. Audited financial statements must be filed with ACRA.

Corporate Tax Filing:

The SFO must file an Estimated Chargeable Income (“ECI”) within 3 months after the financial year-end. Additionally, the annual corporate income tax return (Form C or Form C-S depending in the situation) must be filed with the Inland Revenue Authority of Singapore (“IRAS”) by 30 November of the following year.

GST (Goods and Services Tax) Filing:

If the SFO is registered for GST, it must file quarterly GST returns and make the necessary payments to IRAS.

Employment-Related Filings:

SFOs must file employment income returns (Form IR8A) for their employees with IRAS. This includes the submission of employer-related information and Central Provident Fund (“CPF”) contributions.

FATCA and CRS Returns

An SFO is considered a Reporting Singaporean Financial Institution (“SGFI”) under FATCA and CRS regulations. As such, SFOs are required to submit their FATCA and CRS returns by 31 May of the year following the calendar year to which the return relates to.

MAS Annual Declaration

As part of the terms and conditions of the Letter of Award of the section 13O or section 13U tax exemption incentive from MAS, every SFO will need to submit an annual declaration of the status of the SFO within 4 months of its Financial Year End. As this is a crucial part of the Terms and Conditions, failure to do so can lead to the termination of the tax exemption incentive by MAS.

Other Regulatory Filings and Compliance:

The company must stay updated with changes in regulations and ensure ongoing compliance. This may involve regular reviews of internal policies and procedures.

Depending on the nature of the business, there may be additional sector-specific filings and compliance requirements, such as those related to data protection, environmental regulations, or industry-specific standards. If the company operates in a regulated industry, it must ensure that all necessary business licenses and permits are renewed on time.

Why is getting a good Service Provider important

Overall, the statutory and compliance requirements for an SFO in Singapore involves a comprehensive set of tasks designed to ensure ongoing compliance with legal and regulatory obligations, maintain transparency, Choosing a good service provider is crucial for the SFO’s success and stability. Such a provider ensures compliance with statutory and regulatory requirements, preventing fines and legal issues. They stay updated with changing laws and ensure accurate and timely filings, enhancing financial integrity by preparing reliable financial statements and ensuring audit readiness.

Outsourcing compliance tasks to experts allows the SFO leadership to focus on strategic planning and core business activities, optimizing resources and reducing administrative burdens. These providers also identify and mitigate compliance risks, maintaining smooth operations and preventing legal disputes.

Good corporate governance is ensured through proper conduct and documentation of AGMs and board meetings, building trust among stakeholders. Professional expertise in areas like tax compliance and financial reporting, combined with best practices, ensures high standards.

Reliable providers offer consistency in compliance activities, even during growth or changes, minimizing disruptions. They also provide valuable strategic advice for improving business processes, optimizing tax strategies, and supporting long-term planning.

Cost-effectiveness is another benefit, as providers help avoid fines and offer a more economical solution than in-house teams. Ultimately, having a reliable services provider gives the SFO leadership peace of mind, allowing them to focus on growth and innovation while ensuring compliance and legal obligations are met, and uphold corporate governance standards.

What can SMTP do for Annual Maintenance?

At SMTP, we pride ourselves in ensuring that our clients’ SFOs are professionally managed and comply with the most recent regulations.

Our firm has a breadth of experience helping clients ensure that their SFO complies with the applicable regulations . Should you require our assistance in ensuring that your SFO remains compliant to the latest regulations, please feel free to contact our Business Development team to arrange a meeting with one of our lawyers.