Summary: A company with income and assets of less than S$10 million and 50 employees.
A small company is a particular form of private limited company. To fall into this category, a company must meet at least two out of the three following criteria:
- It must have an annual income of S$10 million or less.
- Its total assets should not exceed S$10 million.
- It must employ 50 or fewer people.
One of the perks of being recognized as a small company is that it’s not obligatory to be audited, which can notably cut down on audit fees.
But here’s the catch: if another corporation owns the company, the parent organization or group has to meet these criteria. If the group fails to meet two out of the three conditions, then the company has to be audited after all.