A Singapore private limited company enjoys audit exemption, i.e. the accounts do not have to be subject to audit if it qualifies as 'Small Company'. If the company is a member of a Group of Companies, then the company enjoys audit exemption if the Group qualifies as 'Small Group'

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A Singapore private limited company is considered as a Small Company if it fulfills 2 out of 3 of the following criteria:

1. Annual Turnover of the Company is less than S$10million

2. Gross Assets of the Company as at financial year end is less than S$10million

3. Total number of employees as at financial year end is less than 50

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If the Company is a member of a Group of Companies, the Group is considered as a Small Group if it fulfills 2 out of 3 of the following criteria:

1. Annual Turnover of the Group is less than S$10million

2. Gross Assets of the Group as at financial year end is less than S$10million

3. Total number of employees as at financial year end is less than 50

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The Group includes all subsidiaries in Singapore and associated companies as well as foreign subsidiaries and associated companies.

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However, Singapore private limited companies are still required to prepare financial reports in a format as defined by the Companies Act and the Singapore Financial Reporting Standards (FRSs) for submission to the relevant authorities such as Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS).

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It is important that the financial report be prepared by a Chartered Accountant (C.A.) registered with the Institute of Singapore Chartered Accountants to ensure compliance with the requirements of the Singapore Companies Act and the Singapore Financial Reporting Standards.