In this article, we break down what EPCs are, what exemption they enjoy, and the pros and cons of voluntarily submitting financial statements—even when you’re not required to.
What Is an Exempt Private Company (EPC)?
In Singapore, a company is classified as an Exempt Private Company if it meets two conditions:
- It has 20 or fewer shareholders, and
- None of the shareholders is a corporation (i.e., no corporate shareholders)
This structure is common for startups, family businesses, and closely held companies. EPCs benefit from simplified compliance requirements, especially around filing obligations.
Do EPCs Need to File Financial Statements with ACRA?
No, EPCs are generally exempted from filing financial statements with the Accounting and Corporate Regulatory Authority (ACRA), provided they meet the following criteria:
- Are not subsidiaries of or owned by public companies
- Have annual revenue less than S$10 million (i.e., qualify as a “small company”)
However, EPCs are still required to:
- Prepare financial statements in accordance with the Singapore Financial Reporting Standards (FRS)
- Hold an Annual General Meeting (AGM), unless exempted
- File annual returns (even if unaudited)
Voluntary Filing of Financial Statements — Why Do It?
Even though it’s not required, some EPCs choose to voluntarily file their financial statements with ACRA. Here’s why:
1. Build Trust with Stakeholders
Filing financials publicly can enhance your company’s credibility with banks, investors, and suppliers. It shows you’re transparent and financially sound.
2. Smoothen Loan or Grant Applications
Financial institutions and government agencies often request official documents filed with ACRA. Voluntary filing can speed up loan approvals or grant processing.
3. Future-Proof Your Company
If your EPC grows and eventually needs outside investment or aims for M&A, having a history of filed accounts can help facilitate due diligence.
4. Demonstrate Good Governance
Voluntary filing reflects a level of professionalism and good corporate governance, useful if you’re dealing with B2B partners or bidding for contracts.
Are There Any Downsides?
While voluntary filing has its perks, consider these before proceeding:
- Loss of privacy – Once filed, your financials become publicly accessible via BizFile.
- Administrative work – You’ll need to ensure accounts are in order, formatted correctly, and signed off.
For some business owners who value confidentiality, it may be better to maintain the exemption.
Conclusion
As an Exempt Private Company in Singapore, you’re not required to file financial statements with ACRA—but doing so voluntarily can offer strategic advantages, especially if you’re planning to grow, borrow, or raise capital.
At CapitalGuru, we work with SMEs and startups to ensure their financials are not only compliant but also strategically positioned for growth. If you’re unsure whether voluntary filing is right for your company, reach out for a no-obligation consultation.