Change of Financial Year End - Singapore
The financial year end in Singapore is December 31. This means that businesses in Singapore typically close their books and prepare their financial statements at the end of December each year.
However, there are some exceptions to this rule. For example, some businesses may choose to have a different financial year end if it makes sense for their operations. For example, a business that has a natural business cycle that doesn't align with the calendar year may choose to have a financial year end that coincides with the end of that cycle.
Key Points Regarding Changes to a Company's Financial Year End (FYE) in Singapore
Here are the main points:
Notification requirement: Companies must notify the Registrar of any changes to their FYE.
Timing restrictions: Changes can only be made for the current or immediately previous financial year.
Statutory deadline restrictions: Changes cannot be made if statutory deadlines for the Annual General Meeting (AGM), notification/approval of the FYE change, or filing of annual returns and financial statements have passed.
Registrar approval: In certain cases, such as when the change results in a financial year of more than 18 months or if specific conditions apply, the Registrar's approval may be required.
By understanding these guidelines, Singapore companies can effectively manage changes to their FYE while complying with regulatory requirements.
Sample Resolutions for a Change of Financial Year End (FYE) in Singapore
Resolution to Change the Financial Year End
Resolved that:
The financial year end of [Company Name] Limited (the "Company") be changed from [Current FYE] to [New FYE].
The first financial year under the new financial year end shall commence on [Start Date] and end on [End Date].
The necessary adjustments to the Company's financial statements and records be made to reflect the change in financial year end.
Resolution to Approve the Change in Financial Year End
Resolved that:
The change in financial year end of the Company from [Current FYE] to [New FYE], as proposed by the Board of Directors, be and is hereby approved.
The necessary actions be taken to implement the change in financial year end, including the amendment of the Company's Articles of Association (if required).
Resolution to Authorize the Board of Directors to Take Necessary Action
Resolved that:
The Board of Directors be and is hereby authorized to take all necessary steps to implement the change in financial year end, including:
Preparing and filing the necessary notifications with the Registrar of Companies.
Making adjustments to the Company's financial statements and records.
Obtaining any necessary approvals from shareholders or regulatory authorities.
Remember to replace the placeholders with your company's specific information.
Additional Considerations:
If the change in FYE results in a financial year of more than 18 months, the Registrar of Companies may require additional approvals.
The resolution may need to be passed by a majority of shareholders at a general meeting, depending on the company's Articles of Association.
How Bestar can Help Change of Financial Year End
Bestar can provide valuable assistance in changing your company's financial year end (FYE) in Singapore. Our expertise in corporate secretarial services and compliance ensures a smooth and efficient process. Here's how we can help:
Assessment and Advisement:
We will evaluate your business's unique circumstances to determine if a change in FYE is suitable and beneficial.
Bestar will provide expert advice on the potential implications of the change, including any regulatory requirements or tax considerations.
Regulatory Compliance:
We will guide you through the necessary steps to comply with Singapore's Companies Act and other relevant regulations.
Bestar will assist in preparing the required notifications to the Registrar of Companies and ensuring timely submission.
Financial Statement Adjustments:
Our accounting professionals can help you adjust your financial statements to reflect the new FYE.
This involves prorating revenue, expenses, and other relevant items to align with the new accounting period.
Tax Implications:
Bestar will assist in assessing the potential tax implications of the FYE change.
We can help you determine any adjustments needed to your tax returns and ensure compliance with tax laws.
AGM and Shareholder Approval:
If required, Bestar can assist in organizing the necessary shareholder meetings to obtain approval for the FYE change.
We will ensure that all procedures are followed correctly and that the necessary resolutions are passed.
By engaging Bestar's services, you can benefit from their expertise and avoid potential pitfalls associated with changing your FYE. We will ensure that the process is handled efficiently and in compliance with all relevant regulations.
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