For new Singapore small businesses, understanding how to set any first Financial Year End (FYE) is an important step during incorporation. Your choice affects corporate secretarial services in Singapore, compliance obligations, and tax planning. Selecting the right FYE ensures smoother year-end processes, accurate reporting, and better strategic management.
A Financial Year End (FYE) is the closing date of a company’s accounting period, marking the end of its financial reporting year. It determines:
When annual financial statements are prepared
Filing deadlines for Annual Returns (AR) and corporate taxes
Timing for shareholder meetings and audits
The FYE provides a structured timeline for companies to organise financial records and comply with statutory obligations under the Companies Act.
New SMEs have flexibility in choosing their first FYE, subject to Singapore law:
The first FYE must start on the company’s incorporation date.
It can last up to 18 months, providing leeway to align with operational or seasonal cycles.
Subsequent financial years must be exactly 12 months.
Popular choices include 31 March, 30 June, 30 September, or 31 December, but any date can be selected to fit the business.
This flexibility allows SMEs to structure financial reporting around operational, tax, and compliance needs.
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Selecting an appropriate FYE offers practical and strategic advantages:
Align with Business Cycles: Schedule year-end after peak sales or inventory periods.
Tax Planning: Helps plan Estimated Chargeable Income (ECI) submissions and corporate tax payments efficiently.
Corporate Secretarial Compliance: Supports accurate record-keeping, timely ACRA filings, and smooth audits.
Stakeholder Reporting: Simplifies reporting to investors, partners, or parent companies.
A well-chosen FYE ensures efficient corporate secretarial management and reduces the risk of missed deadlines.
The chosen FYE must be filed with ACRA during incorporation.
Companies can change their FYE later with approval, provided statutory deadlines for AGM, AR, or financial statements are observed.
Approval from the Registrar is required if the new FYE results in a financial year longer than 18 months or if there has been a previous change within the last five years.
Proper documentation and timely notifications ensure compliance with Companies Act regulations.
New Singapore small businesses can set any first Financial Year End lasting up to 18 months. Choosing the right FYE helps align financial reporting with business cycles, tax planning, and compliance requirements. It also ensures smooth corporate secretarial processes, organised record-keeping, and better strategic management for your growing company.
Don’t let regulatory complexities impede your business growth. Counto’s elite corporate secretarial services are your strategic advantage for flawless compliance and governance in Singapore’s competitive business landscape. To learn more, speak to us directly on our chatbot, email [email protected], or use our  contact form to get started.
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