Companies are required to hold Annual General Meetings and file of Annual Returns on time in order to avoid ACRA penalties of $300 to $600 for late lodgements. Furthermore, directors may also face court summons for non filing of Annual Returns.
A company must hold an AGM within 18 months of its incorporation and thereafter no more than 15 months after the first AGM. It is also important to note that every company must hold their AGM within 6 months after the Financial Year End.
A company is required to file an annual return within 30 days from the AGM date. For example, the first AGM is held on 30 June ie within 18 months from the date of its incorporation, then the deadline for the company to file its annual return will be on or before 30 July.
The Annual Return can only be filed after an Annual General Meeting has been held. It must be signed either by a director of the company or a company secretary. The key points to keep in mind while filing an annual return are:
If your company has only one director, he/she is required to sign off on the AGM and AR documents for lodgement with ACRA.
If your company has more than one director, then at least 2 of the directors have to sign off on the AGM and AR documents.
With effect from 30 April 2021, ACRA has revised the penalty framework for late annual lodgements with a simplified 2-tier penalty. Under the revised penalty framework, a late lodgement penalty of $300 will be imposed on the company if the annual return is filed within 3 months after the filing due date, or a penalty of $600 if the lodgement is filed more than 3 months after the filing due date.