If you are considering starting your own business, you may have heard the name ACRA mentioned frequently where business registrations are concerned. If you are unfamiliar with ACRA and its functions, this helpful guide provides an overview of its responsibilities.
What is ACRA?
The Accounting and Corporate Regulatory Authority (ACRA) is a government statutory board that oversees “business registration, financial reporting, public accountants, and corporate service providers.” It is also responsible for maintaining accounting standards for various entities in Singapore.
ACRA is typically the first point of contact for new business registrations via Bizfile, while also overseeing compliance with the Companies Act 1967 and other relevant regulations. As such, it actively promotes “public awareness about new business structures, compliance requirements, corporate governance practice”, and other relevant topics.
ACRA’s Responsibilities Towards Business Registrations
ACRA handles all aspects of business registrations and even deregistrations, allowing entities to create and manage business profiles, financial statements, and registration details via Bizfile, ACRA’s “one-stop digital service portal for business registration, filing, and information”. It also makes this information publicly accessible (for a small fee), allowing the public to view details about businesses registered in the country, complying with relevant regulations, such as the Personal Data Protection Act (PDPA).
ACRA also requires all entities to maintain their records and ensure all information provided is up-to-date. Any company that fails to do so may face penalties or potential legal consequences. ACRA also handles data protection and privacy concerns, in accordance with the Public Sector (Governance) Act and other relevant guidelines, to prevent abuse of this information.
How ACRA Handles Business Registrations
ACRA’s website provides a wealth of resources you can use to register your business. You generally need to follow the instructions provided via Bizfile or handy user guides on ACRA’s website. With Bizfile, you can quickly complete the entire process within an hour or so.
Business Name & Structure
There are four main types of business structures to choose from:
- Sole proprietorship (single owner) or partnership (two or more owners)
- Limited partnership (LP)
- Limited liability partnership (LLP)
- Company
Your business structure choice depends largely on various factors, including the nature of the business, its scale, the number of partners, members, and shareholders, and so forth. Each type also offers distinct requirements you need to fulfil as part of ACRA’s compliance regulations.
You should also decide on your business or company name and cross-check with Bizfile to ensure no other company is registered with the same name. If there is, consider an alternative or add words to differentiate your company name. However, some keywords may be disregarded when ACRA assesses similar company names. Names containing undesirable elements considered vulgar or offensive, or names similar to government bodies or terms protected by law, are also not allowed.
Once you reserve your business name, ACRA will reserve it for 120 days; it will expire if you fail to register the business or incorporate the company within this time. Processing will take time, as additional checks may be performed by the relevant Referral Authorities.
Registering an Address
Sole-proprietorships, partnerships, and LPs will need to register their business address where they will “carry out [their] business”. Business addresses can use your current residential address under the Home Office Scheme with approval from the relevant bodies.
Meanwhile, LLPs and companies will submit a registered office address. The difference is that a registered office address is where the company receives all correspondence and stores its records, and not necessarily where it performs its business activities. For example, the registered office address may be in a commercial hub, while its business activities occur in a factory.
Note that a business/registered office address cannot be a P.O. box, as it must be an address where you are reachable by the public or for crucial government correspondence.
Compliance Requirements
Other than specifying your business structure, you also need to furnish additional information to meet ACRA’s strict compliance requirements. Depending on your business structure, this involves:
- Specifying your business’s primary and secondary activities
- Obtain “additional licences or permits” before starting operations
- Appoint officials to run the business
- Prepare and submit incorporation documents, such as the company constitution
- Abide by “specific tax obligations”
These details can then be submitted to Bizfile, but should be done promptly to avoid penalties. Any changes to your business, such as a change in directors, will require prompt notification to ACRA within 14 days from the date of change.
Foreign Companies
Foreign individuals or companies who wish to start a business in Singapore will need to undertake additional steps before incorporating with ACRA. For example, foreign individuals staying in Singapore can apply for an Entrepreneur Pass from the Ministry of Manpower (MoM), then submit the application when incorporating the entity with ACRA or “within six months after incorporation”.
Foreign parties will need to engage the services of a registered filing agent to help them submit the application to ACRA on their behalf.
Pay Fees
Depending on your business structure, you will also have to pay the relevant fees to incorporate your company with ACRA. For example, sole proprietorships and partnerships will pay SGD 15 for the name application, SGD 100 for the registration fee, and SGD 30 for a renewal fee (where applicable).
Once your registration is complete, you will receive a Unique Entity Number (UEN), an identifier for all your business activities or legal dealings. Include your UEN in all correspondence, especially when liaising with government agencies.
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