Navigating Key Regulatory Compliances for Businesses in Singapore and India

Running a business in Singapore and India requires adherence to specific legal and regulatory compliances. The legal framework for businesses in Singapore and India while similar in some areas because of the common law system, differ significantly in other aspects owing to certain factors such as the legislative structure, market conditions, etc. A brief overview of key compliance requirements for businesses operating in or planning to establish a presence in Singapore or India is outlined below.

1. Tax

Singapore: Under the Income Tax Act 1947 corporate income tax? is 17% of chargeable income for both local and foreign companies. Companies (unless exempted) must file with the Inland Revenue Authority (IRAS) their Estimated Chargeable Income (ECI) within 3 months after the end of a financial year and all companies must proceed to file the corporate tax return (Form C-S / Form C-S (Lite) / Form C) by 30th November. The Goods and Services Tax Act, 1993 requires that businesses having more than SGD 1 million taxable turnover annually must register for GST (GST rate is 9%).

India: Under the Income Tax Act, 1951, Indian companies having Rupees 400 crores turnover, must pay 25% corporate tax (plus surcharges and cess charges). A foreign company is liable to pay income tax at 40 percent of the average taxable income. India corporate tax return is filed on or before 30th October of the assessment year in the Form ITR 6. Under the Central Goods and Services Act, India, businesses must register for GST if their annual turnover exceeds ?20 lakh (for services) or ?40 lakh (for goods) annually. GST rates vary between 5%, 12%, 18%, and 28%, as prescribed by the respective state governments.

2. Companies Act?

Singapore: Companies Act 1967 provides clear directives for setting up and running businesses, with a focus on transparency, mandatory audits, and efficient reporting to the Accounting and Corporate Regulatory Authority (ACRA). Companies are required to file their annual returns within a prescribed period (5 – 7 months after the end of its financial year, depending on the type of company), maintain register of shareholdings of Director, publish name and registration number on all letters, invoices, publications, notices, update particulars of the Company, file Register of Registrable Controllers with ACRA and hold an AGM every year (within 4-6 months after the end of its financial year depending on the type of company) unless exempted.

India: Companies Act, 2013 requires all companies except One Person Company (OPC) to hold their Annual General Meeting (AGM) within six months from the end of every financial year, with a one-time extension of 3 months for conducting AGM. Companies MUST submit annual return with the Registrar of Companies within 60 days of holding an AGM. Additionally, all companies are required to submit copy of Financial Statement including consolidated financial statements, if any within 30 days of conducting AGM. Companies must convene 4 Board Meetings every year ensuring that gap between 2 meetings does not exceed 120 days.

3. Employment

Singapore: Employment Act 1968 sets out terms for working hours, rest days, and termination. Foreign worker quotas/passes and levies must be managed carefully by companies as there are specific laws and regulations like the Employment of Foreign Manpower Act 1990 that must be complied with. Further, the Central Provident Fund Act 1953 is an important law that needs to be complied with as is Workplace Safety and Health Act 2006. Protection from Harassment Act 2014 which protects against causing harassment, alarm or distress and stalking including at the workplace and the Workplace Fairness Act (yet to be notified) maintain a safe and bias free workplace.

India: Regulations such as the Minimum Wages Act 1948 fixes weekly day of rest and payment of wages, Factories Act, 1948deals with workplace safety and amenities which must be provided to workers in factories. Employee welfare is also taken care of in the form of Employees’ Provident FundsandMiscellaneous Provisions Act, 1952 which mandates compliances in relation to amount deposited in the Provident Fund, Pension Fund and Insurance Fund. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013mandates companies to prepare and implement internal policy for prohibition of sexual harassment.

4. Personal Data Protection

Singapore: Personal Data Protection Act 2012 (PDPA) provides clear guidelines for data collection and usage. Businesses must obtain consent from individuals before collecting data and inform them regarding the purpose for collecting, using and disclosing personal data, and formulate a process for receiving and responding to complaints. Further, the PDPA in Singapore outline prerequisites for transferring personal data overseas. Essentially, a Data Controller may transfer personal data abroad if it ensures that the overseas recipient is bound by legally enforceable obligations or specified certifications, guaranteeing a level of protection equivalent to the PDPA in Singapore. The PDPA also requires that every company must appoint a Data Protection Officer. Penalties for non-compliance go up to SGD 1 million.

India: Digital Personal Data Protection Act (2023) (yet to be notified) will mandate companies to comply inter alia with requirements of obtaining consent for use of data which has to be accompanied or preceded by a notice providing information regarding the data, purpose for which it is to be processed (the notice has to be in clear and simple language with option to access the Notice’s contents in either English or one of the 22 languages mentioned in the Constitution of India); report any event (s) of personal data breach to the Data Protection Board of India and the affected data principals. As the law stands only Significant data fiduciaries which is a defined term under the Act are required to appoint a Data Protection Officer. As for processing of personal data outside India, the government can restrict cross-border data processing to certain countries by way of notification/s. Non-compliance can potentially result in hefty fines, scaling up to ?250 crore (approximately SGD 40 million).

5.Environment

Singapore: Key laws, include Energy Conservation Act 2012 which are mandatory for businesses consuming 54TJ or more energy annually. The Carbon Pricing Act 2018 applies to businesses emitting 25,000+ tonnes CO? annually. The Environmental Protection and Management Act 1999 and the Environmental Public Health Act 1987, mandate compliance measures such as reporting and implementing energy saving measures, adoption of carbon reduction strategies, air pollution control, trade effluent treatment, and street and premises cleanliness to strengthen environmental sustainability.

India: Environment (Protection) Act, 1986 protects the environment and implements compliance measures such as obtaining licenses for setting up industrial plants, obtaining environment clearance for projects, obtaining authorisation for handling bio-medical waste etc for strengthening the environment. Businesses must comply with various legislations including the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution) Act,1981 etc. with compliance in place for obtaining environmental permits and ensure safe disposal of hazardous waste. Businesses are required to comply with central and state government laws and pollution board directives.

6. Anti-Corruption and AML

Singapore: Businesses operating in Singapore must comply with the Prevention of Corruption Act 1960, which has a wide scope criminalizing both public and private sector bribery. Additionally, companies are required to adhere to Anti-Money Laundering (AML) regulations under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA), Terrorism Suppression of Financing Act in 2002 and various regulations issued by the regulators like MAS, Council for Estate Agents, specific to their sector. This mandates the reporting of suspicious transactions and the implementation of internal controls to detect and prevent illicit financial activity. Reporting of suspicious activities is made to Singapore’s Financial Intelligence Unit (FIU), Suspicious Transaction Reporting Office. Failure to comply with these laws can result in severe penalties, including fines, imprisonment, and reputational damage.

India: Businesses must adhere to the Prevention of Corruption Act, 1988, which criminalizes bribery of public officials and mandates corporate responsibility in preventing corrupt practices. Additionally, companies are required to comply with the Prevention of Money Laundering Act (PMLA), 2002, which obligates businesses to maintain records, conduct customer due diligence, and report suspicious transactions to the Financial Intelligence Unit-India. Non-compliance can lead to stringent penalties, including asset seizures, fines, and imprisonment.

Conclusion

The legislations mentioned above for both Singapore and India are largely industry-agnostic and in the case of India the laws referenced are primarily central level legislations though there are also State / municipal level laws that companies need to comply with. ?Both countries also have sector-specific laws governing industries such as banking and financial services, healthcare and pharmaceuticals, real estate and telecommunications, among others, which must be strictly adhered to. Additionally, regulators in both countries play an active role by issuing notifications to ensure compliance with evolving market and regulatory conditions – for example regulators such as the Monetary Authority of Singapore and the Singapore Exchange in Singapore, and the Reserve Bank of India and the Securities and Exchange Board of India in India regulate banking and financial markets.

As mentioned earlier, India and Singapore have a strong trade relationship with Singapore being one of India’s largest trade partners and a leading source of FDI into India . Free Trade Agreements like CECA and a MoU between the two countries to partner in the semi-conductor sector in 2024, further underscores the potential for collaboration. As India and Singapore continue to deepen their economic ties businesses must recognize that business sustainability hinges not just on market opportunities but also on regulatory preparedness. In an increasingly globalized economy, businesses that proactively address compliance will be best positioned to thrive. Komrisk offers comprehensive global coverage, supporting compliance management in India, Singapore, UAE, Bangladesh, Nepal, Sri Lanka and more. With features such as audit and risk management tools, organizations can monitor compliance gaps, generate insightful reports, and enhance governance. The platform’s real-time regulatory updates ensure businesses stay ahead of legal changes, reducing risk exposure and preventing penalties.

Authored by: Swapna Umakanth , Antara Dasgupta

Researched by: AYUSHI KARMAKAR , DEBASHIS BANERJEE

Disclaimer

The information provided on this blog is for general informational purposes only and is not a substitute for professional legal advice. We are not a law firm and are not authorized to practice law in your jurisdiction. Laws and regulations are complex and constantly changing, and information that may be true in one jurisdiction may not apply in another. Before acting on any information you read here, you should consult with a qualified lawyer practicing in the relevant jurisdiction for your specific legal issues or concerns. While we strive to provide accurate and up-to-date information, we make no guarantees that the information on this blog is completely current or error-free. We disclaim any liability for any actions taken or not taken based on the information on this blog.