Does your company need an audit?

A private company is exempt from audit if it is a small company and, if it is part of a group, the group is also small. A company is generally small if it meets at least 2 of 3 criteria (revenue of S$10 million or less, total assets of S$10 million or less, 50 or fewer full-time employees) in each of the two preceding financial years; a new company can qualify on its first or second year, and a small company stays small until it fails the test for two years in a row. Other companies need an audit unless another exemption applies, such as the one for dormant companies. The constitution, lenders or a regulator may still require one.

Any 2 of: total annual revenue of S$10 million or less, total assets of S$10 million or less at the year end, and 50 or fewer full-time employees at the year end. They are applied to the two financial years immediately before the year in question, or to the first or second year itself for a new company.

Yes, unless the whole group is a small group. A subsidiary is exempt only if it is a small company and the group headed by its ultimate holding company, measured on consolidated figures including overseas entities, also meets 2 of the 3 criteria.

It still prepares financial statements and files its annual return. Most audit-exempt companies file unaudited financial statements with the annual return, but a solvent exempt private company need not file them and makes a solvency declaration with the annual return instead.

No. This checker covers the small company exemption for private companies. Companies limited by guarantee are public companies, and dormant companies have their own exemption.