Companies may face fines, director disqualification, and striking off for filing offences.

Late lodgement penalties

If you file your annual return after the due date, you must pay a late lodgement penalty. The amount depends on how late the submission is.

Enforcement action

ACRA may take further action, including prosecution, if:

• The composition sum is not accepted.
• The company has multiple or repeated late filings.
• ACRA decides not to offer a composition.

ACRA-initiated striking off

ACRA may strike off a company under Section 344(1) of the Companies Act if it is not operating or has failed to file annual returns for several consecutive years.

Directors of three or more companies struck off by ACRA within five years can be disqualified.

Director disqualification and debarment

Directors who fail to meet their legal obligations may face personal consequences.

Director Disqualification

Under Section 155A of the Companies Act, directors may be disqualified if they:

• Are convicted of three or more filing offences within five years (5-year disqualification), or
• Have three or more companies struck off by ACRA within five years (3-year disqualification for first-time cases, 5 years for repeat cases)

During disqualification, they cannot act as a director or manage any local or foreign company.

Director Debarment

Directors may be debarred for failing to meet key obligations, including not filing required documents for three months or more.

A debarred individual cannot take on new appointments as a director or company secretary.