The Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of business entities and public accountants in Singapore. ACRA plays a pivotal role in the company registration process, ensuring compliance with regulatory requirements and promoting a transparent business environment. This article explores ACRA’s role and the key steps involved in registering a company through ACRA.
ACRA’s Functions and Responsibilities
1. Business Registration
ACRA oversees the registration of businesses in Singapore. This includes approving company names, incorporating new entities, and maintaining an updated registry of business entities.
2. Compliance and Enforcement
ACRA ensures that companies comply with statutory requirements, such as filing annual returns, holding Annual General Meetings (AGMs), and maintaining accurate financial records. ACRA has the authority to enforce compliance through penalties and other measures.
3. Public Information
ACRA register company provides public access to information about registered companies, including their financial status, ownership, and compliance history. This transparency helps build trust and confidence in the business environment.
4. Regulatory Framework
ACRA implements and enforces regulations under the Companies Act, Business Names Registration Act, and other related legislation. It also develops policies to enhance corporate governance and accounting standards.
Steps to Register a Company with ACRA
1. Name Reservation
The first step is to reserve a unique company name through ACRA’s BizFile+ portal. The name must not be identical to an existing business, infringe on trademarks, or be deemed inappropriate.
2. Preparing Documentation
The following documents are required for company registration:
- Memorandum and Articles of Association (MAA): Outlines the company’s constitution and governance framework.
- Consent to Act as Director and Secretary: Signed by the appointed directors and company secretary.
- Identification and Address Proof: For all directors, shareholders, and the company secretary.
3. Filing Incorporation Application
The incorporation application is submitted through BizFile+. This includes details of the company’s registered office, share capital, and the particulars of directors and shareholders.
4. Payment of Fees
A non-refundable fee is payable for name reservation and company incorporation. The current fee for registering a company is SGD 300, while the name reservation fee is SGD 15.
5. Issuance of Certificate of Incorporation
Upon approval, ACRA issues a Certificate of Incorporation, confirming the company’s legal existence. This certificate is typically issued within one to two days.
6. Post-Incorporation Compliance
Newly incorporated companies must comply with several post-incorporation requirements, including:
- Appointing a Company Secretary: Within six months of incorporation.
- Appointing an Auditor: Unless exempted as a small company.
- Opening a Corporate Bank Account: For business transactions.
Benefits of Registering a Company with ACRA
1. Credibility and Trust
Registration with ACRA enhances the credibility of a business. It signals to customers, investors, and partners that the company adheres to regulatory standards and operates transparently.
2. Access to Funding
Registered companies can access various funding options, including bank loans, government grants, and venture capital. This is crucial for growth and expansion.
3. Limited Liability
Incorporating a company provides limited liability protection to shareholders. This means that personal assets are safeguarded in case of business debts or legal actions.
4. Tax Benefits
Registered companies in Singapore enjoy various tax benefits, such as exemptions and incentives, which can significantly reduce the overall tax burden.
5. Perpetual Succession
A registered company has perpetual succession, meaning it continues to exist regardless of changes in ownership or management. This provides stability and continuity for the business.
Conclusion
ACRA plays a crucial role in the company registration process in Singapore, ensuring compliance with regulatory requirements and promoting a transparent business environment. Understanding ACRA’s functions and the steps involved in registering a company can help entrepreneurs navigate the process efficiently and leverage the benefits of operating in Singapore. By adhering to ACRA’s regulations and maintaining compliance, businesses can establish a strong foundation for growth and success.