Companies that is exempt from audit and filing requirement is still required to prepare a full set of financial statements including explanatory notes, Directors’ report and the Statement Directors, and must be prepared in compliance with the Financial Reporting Standards (“FRS”)
Under requirements by ACRA, your Company may be exempted from audit if:
- Your company is a Private Exempt Company (“EPC”), which means no corporate shareholder in the company and the number of shareholders in the company is not more than 20.
- Your company’s annual revenue does not exceed $5 million for financing years starting on and after 1 June 2004
- No request for audit by shareholders who represent 5% or more of a company’s ordinary shares, or
- No request for audit by banks or other creditors/financial Companies
For the company financial year commencing from 15 May 2003, compilation report (un-audited financial statement) is required if the company is dormant.