If your company qualifies as a small company, then it does not need to appoint an auditor.
The company qualifies as a small company if:
1) For a particular financial year, it is a private company; and
2) If it meets 2 of the 3 following criteria for the immediate past two consecutive financial years
(a) The company has total annual revenue of less than or equal to SGD$10 million
(b) The total assets of the company are less than or equal to SGD$10 million
(c) The total number of employees is less than or equal to 50
For a company which is part of a group to qualify for audit exemption:
1) The company must qualify as a small company; and
2) The entire group must be considered a small group
For a group to be considered a small group, it must also meet 2 of the 3 criteria for the immediate past two consecutive financial years.
Where a company has qualified as a small company, it continues to be a small company for the subsequent financial years until it is disqualified. It will be disqualified if:
1) It ceases to be a private company at any time during a financial year; or
2) It does not meet at least 2 of the 3 criteria for the immediate past two consecutive financial years.
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Singapore Secretary Services
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