Getting to Know the Business Regulator in Singapore

The public advocates for a society that values the rules of the law. Everyone wants to have a good governance and effective implementation of regulations to keep everything in order. The same goes with the business community; and this is where regulatory authorities come in.

Regulatory agencies or bodies are tasked with the implementation and enforcement of laws. The regulations result from the laws enacted by the legislature. Like in any country, there is also a business regulator in Singapore called the Accounting and Corporate Regulatory Authority of Singapore or ACRA.

ACRA, is also the agency where you do the register of company in Singapore. The organization works hard in making sure that the business sector stays in line with the government laws. After all, a well-kept business community benefits the consumers the most, including the employment segment.

Let us discuss further what is the role of ACRA in Singapore’s business landscape.

Looking into the Business Regulator in Singapore

ACRA was formed in April 2004 following the mandate of the Accounting and Corporate Regulatory Act. According to the said law, ACRA is a corporate body with perpetual succession. It is a legal entity that is capable of the following:

• It can sue and be sued.
• ACRA can buy, own, develop, and sell any property under its name.

Overall, ACRA is a government body that oversees the company formation, regulation, and even closure.

ACRA provides a legal framework to every business in the country, making sure each of one them comply with all the regulations. At the same time, ACRA is the one in-charge of storing all the data about the enterprises in the country.

The government body registers around 60,000 to 70,000 businesses annually. Entrepreneurs mostly process them through online applications, keeping up with the shift to digital. ACRA usually only takes less than an hour to complete standard solutions, including checking company name and filing for company information. It must be noted, however, that foreign entities are not allowed to apply on their own. They can do so by employing a certified agency to represent them.

ACRA is also the government body that provides Unique Entity Numbers (UEN) to the enterprises. It is a 9 or 10 digit identification number given to entities which are given permission to operate in the country.

Enforcing the Companies Act

Apart from collecting corporate data—such as nominee directors, corporate secretaries, and shareholders, among others—ACRA is also responsible for administering Singapore’s Companies Act.

The law was enacted back in 1967. Singapore Companies Act, basically, applies to all the businesses incorporated in the country. It has all the necessary provisions for the matters relating to the companies. They include the following:

• definition of subsidiary, holding company, and ultimate holding company
• solvency statement and violations for submitting false documents
• inspection of books of corporation
• formation of companies
• capacity and powers of a business entity
• ownership through shares in a company
• capitalization of a business

Apart from these, there are other necessary matters the law is covers, such as the shareholdings and reduction of stake in a business.

Getting the Help for Your Business

As you can understand, the business regulator in Singapore strictly enforces guidelines to make sure that the industry remains vibrant, growing, and improving. ACRA only wants what is best for both the businesses and its customers.

That being said, there are many regulations to be followed when you are opening a business and you might need a corporate service provider to help you. Reach out to 3E Accounting so you can setup business Singapore.