Crucial Compliance: 5 Costly ACRA Penalties Every Singapore Business Owner Must Avoid

If you're running a business in Singapore, compliance should be the last things you should worry about, but unfortunately, ACRA penalties are real and costly too. These fines often stem from simple manual oversight and negligence, which can easily drag down your business growth. You must know these five most common and expensive mistakes to avoid in your corporate journey.

The first critical error is the Late Lodgement of the Annual Return (AR). The AR is your required yearly update to ACRA, and missing this deadline is the single most common compliance failure. The cost is high: late filing fees range from S$300 to S$600, not counting potential composition fines starting at S$500. 

This frequently leads to the second penalty: skipping or delaying the AGM/FS Circulation.  Even if you are excused from a physical AGM, you must circulate your Financial Statements (FS) on time, which is usually six months after the end of your financial year. Failure to do so results in a minimum composition fine of S$500, which nearly invariably triggers the subsequent late AR fee, thus doubling your penalty.

The third costly mistake is leaving the Corporate Secretary position vacant.  The law requires that the CS job be filled within six months of incorporation and cannot remain vacant for more than six months at any time.  A breach here is severe, with fines of up to S$5,000 and the possibility of director prosecution, as a vacancy means no compliance control.

Compounding these issues is the fourth penalty, the Late Notification of Company Changes. Whether you change a director, move your office, or adjust share capital, ACRA requires notification within 14 days. These ad-hoc changes are easy to forget, but late fees start immediately at S$50 and increase to S$200 after three months.

Finally, the most severe consequence is Director Disqualification. For serious or repeated breaches (three or more filing offences in five years), directors can be banned from acting in management for up to five years. This is a personal liability risk that can only be solved through flawless corporate governance.

Stop Paying for Manual Errors!

All these costly errors are prevented by efficiency and precision, not high hourly fees. This is precisely why modern, AI-powered corporate secretarial services are essential. Tianlong’s automated platform handles the routine, automated document generation, proactive deadline tracking, and instant ACRA filing, ensuring you stay compliant and avoid unnecessary fines. Protect your time, your reputation, and your wallet with technology.