How Do SG Companies Choose the Fiscal Year-end

2024-11-05

Everybody who registers a company in Singapore must make a good decision by the end of the fiscal year! What is the fiscal year-end? To understand this, we first need to clarify what the fiscal year refers to in the process of registering and operating a company in Singapore?

Fiscal Year

The fiscal year usually lasts for 12 months, and companies use this period as a benchmark to prepare financial reports, file taxes, and hold annual shareholder meetings. However, it should be noted that the first fiscal year can exceed 12 months but be less than 18 months.

And the end of the fiscal year is the cut-off point for a 12-month period. Common fiscal year-end dates include March 31st, June 30th, September 30th, December 31st, etc.

Except for the first year, the fiscal year is usually 12 months, which is not worth mentioning. What's particularly special is the first fiscal year, let's discuss it according to different situations.

Firstly, it is important to clarify that the first fiscal year of each company starts from its registration date. So, here's the problem——

Can the First Fiscal Year be Less Than 12 Months?

sure.

For example, if a company is registered on February 3, 2021 and chooses the end of December as its fiscal year, then the company's first fiscal year will be from February 3, 2021 to December 31, 2021.

The next fiscal year will be from January 1, 2022 to December 31, 2022, and so on. The next fiscal year will be from January 1, 2023 to December 31, 2023.

Can the First Fiscal Year Exceed 12 Months?

Sure, as long as it doesn't exceed 18 months.

For example, if a company's registration date is September 10, 2022, and they also want to choose the end of December as their financial year-end, a common way is to choose December 31, 2023. The first fiscal year will be from September 10, 2022 to December 31, 2023, and the next fiscal year will start with a 12-month cycle from January 1, 2024 to December 31, 2024.

Now, do you understand the calculation of the fiscal year and the selection of the fiscal year end?

Established in 2011, Singapore Skyline Business is a comprehensive international business registration and company management service provider. As a registered and reputable business entity with the Ministry of Manpower in Singapore, we specialize in services ranging from family office establishment, GIP investment immigration, company registration, work permit applications, to later-stage PR applications. Feel free to reach out for a free consultation via WeChat (ID: Skyline-Ng) or WhatsApp at +65-91328885.

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