The Importance of Appointing a Company Secretary and Auditor:

A Guide to Compliance with ACRA


Have you ever seen a Company Secretary and an Auditor often take centre stage in business dramas like "Queen of Tears" and "Arbitrage"? These roles aren't just for dramatic effect—they are actually crucial in real-world companies too! In a business landscape, ensuring compliance with regulatory requirements is crucial for the success and longevity of a company. One of the key aspects of this compliance is the appointment of a company secretary and auditor, as mandated by the Accounting and Corporate Regulatory Authority (ACRA). Let's explore their roles and find answers to some important questions.

Must I appoint a Secretary and Auditor for my company?

Yes, you must!


In Singapore, a company secretary must be appointed within six months of the company's incorporation. Similarly, a company auditor must be appointed within three months of the company's incorporation, unless the company is exempt from audit requirements.

 

You can also appoint yourself as a Company Secretary or Auditor if you meet the requirements. Ensure you can fulfil the duties effectively, as they involve legal obligations and regulatory compliance. However, consider engaging independent professionals for better transparency and governance as your company grows.

Why are their roles important for the company?

A company secretary plays a vital role in ensuring the smooth operation of a company. Key responsibilities include overseeing annual general meetings, filing annual returns with ACRA, and submitting corporate taxation returns to the Inland Revenue Authority of Singapore (IRAS). The company secretary is also responsible for ensuring compliance with statutory requirements and maintaining accurate records of the company's activities.

A company auditor, on the other hand, is responsible for analysing the company's financial statements to provide an independent opinion on their accuracy and fairness. The auditor's report must be attached to or endorsed upon the financial statements when they are presented at the company's annual general meeting. The auditor's duties include accessing the company's accounting records and obtaining any necessary information and explanations from the company's officers.

What if my company is exempted from the audit requirement, how to know?

It's commonly assumed that if a company is exempt from audits, they're also exempt from appointing a secretary or auditor. However, exemption from audits doesn't eliminate the need for a secretary or accurate financial records. Even if exempt from audits, a company must appoint a secretary to ensure compliance.

To determine whether your company is exempt from audit requirements, you must first determine whether your company meets the criteria for exemption. This includes being a private company that meets at least two of the following criteria: total annual revenue not exceeding $10 million, total assets not exceeding $10 million, and no more than 50 full-time employees. If your company meets these criteria, it is likely exempt from audit requirements. However, it is always best to consult with a professional corporate secretarial firm or ACRA directly to confirm your company's status.

Final Thoughts


In conclusion, the appointment of a company secretary and auditor is a critical aspect of ensuring compliance with regulatory requirements in Singapore. By understanding when to appoint these officers, their duties, and the implications of exemption from audit requirements, companies can ensure they are operating in compliance with ACRA regulations and maintaining accurate financial records.


If your company requires assistance in navigating the complexities of company secretarial services, Accounting Superhero is here to help. Our team of experts provides a range of services, including company incorporation, director and secretary appointment, and audit compliance. With our expertise, you can focus on growing your business while we handle the administrative tasks. Contact us today to learn more about how we can support your company's success.

Source: 

1. Appointing Directors, Company Secretary and Other Key Personnel

2. Singapore Company Secretary – Role and Duties

3. Roles and Responsibilities of an Auditor