The first set of modifications to Singapore’s Companies Act, approved by the Parliament last October, entered into forced as of July 1, 2015.
Among the eighteen changes, we highlight the elimination of the mandatory audits for small enterprises. A small Enterprise is defined as a limited private Company that complies with two out of three of the following requisites:
- Annual income less than SGD 10 millions
- Total assets less than SGD 10 millions
- Less than 50 employees
Companies belonging to a corporate group which meet the above mentioned conditions at consolidated level are also considered small enterprises.
The goal of these modifications is mainly to lower costs of small companies, to promote the use of holding companies or other mechanisms to attract foreign investments, as well as to make company management more flexible and make them more attractive in an international environment. These modifications affect companies starting their fiscal exercise in July 2015.