A Singapore private company is exempt from audit if it qualifies as a "small company": it must meet at least two of three size tests in each of the two preceding financial years. The tests are revenue of S$10 million or less, total assets of S$10 million or less, and 50 or fewer employees. ACRA announced a review of the thresholds on 26 February 2026.
Facts checked: 16 October 2026 against ACRA's pages on the small company concept and its February 2026 announcement. We re-checked the ACRA announcement on 17 October 2026 and the rule for new companies against ACRA's audit exemption page as quoted in search results; we did not find the result of the review, and we did not open the statute text. Check ACRA before relying on the S$10 million figures. This is general information, not advice.
The test
| Test | Limit |
|---|---|
| Total annual revenue | S$10 million or less |
| Total assets | S$10 million or less |
| Number of employees | 50 or fewer |
A company must meet any two of the three in each of the two financial years before the year in question. The exemption applies only to private companies; the rule sits in section 205C of the Companies Act and its Thirteenth Schedule.
Special cases
- New companies. ACRA's guidance says a company less than two years old qualifies if it meets the tests in its current financial year; if it did not qualify in the first year, it is tested again on the same basis in its second.
- Groups. A company in a group qualifies if the whole group meets two of the three tests on a consolidated basis.
- Losing the exemption. A company stops qualifying if it ceases to be private, or fails two of the three tests for two consecutive years.
- Shareholders can still ask for an audit. Holders of at least 5% of the issued shares keep the right to require one.
ACRA's 2026 review
On 26 February 2026 ACRA announced a review of the framework, to reduce compliance costs for small companies. It said it would consult on raising the revenue and asset thresholds, and would explore whether some subsidiaries can qualify even where their group does not. The employee threshold is not in the scope of the review. Industry consultations began in March 2026 and the feedback survey closed on 17 April 2026. We did not find a decision.
What does not go away
An exempt company must still keep proper accounting records and prepare financial statements under the prescribed accounting standards. See what to do when you do not need an audit.
Frequently Asked Questions
Who is exempt from audit in Singapore?
A private company that meets at least two of three tests (revenue and assets of S$10 million or less, and 50 or fewer employees) in each of the two preceding financial years.
Can a shareholder still require an audit?
Yes. Holders of at least 5% of the issued shares can.
Is the threshold going up?
ACRA announced a review in February 2026 that includes raising the revenue and asset thresholds. We did not find a decision.
Does a group company qualify?
If its whole group meets two of the three tests on a consolidated basis. ACRA is also looking at some subsidiary cases.
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