What is the Accounting and Corporate Regulatory Authority (ACRA)?

If you’re thinking about company incorporation in Singapore, one of the first things you’ll need to do is register with the Accounting and Corporate Regulatory Authority (ACRA). So, what is ACRA and what does it do exactly? It is a government authority that keeps a record of all the companies registered in Singapore to maintain transparency with the general public. Let’s find out more about ACRA.

About ACRA

Its main functions include:

Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of company registration, financial reporting, public accountants and corporate service providers. It is tasked with developing the accountancy sector and fixing accounting standards which are followed by companies, societies, co-operative societies and societies registered in Singapore. Singapore is often ranked as one of the best countries to start a business. ACRA plays an important role in this achievement. If you want to make your business a legal entity, registration with ACRA is necessary.

ACRA Functions

Its main functions include:

• Overseeing and regulating companies and public accountants.
• Providing companies with a Unique Entity Number so that they can conduct business activities in Singapore.
• Collecting data of those associated with the company such as shareholders, directors, company secretaries, and so forth.

Statutory Requirements of ACRA

There are certain statutory requirements set forth by ACRA. The company directors must ensure their compliance with these requirements. In case of non-compliance, ACRA can take action against them. The following ACRA statutory requirements must be complied with by all the companies in Singapore:

• Every company registered with ACRA must have a local registered office address.
• A private limited company must have between 1 to 50 shareholders which can be individuals and corporate entities.
• Only individuals who are 18+ can be appointed as directors.
• A company is required to hold an annual general meeting. It provides a platform for stakeholders and company officers to communicate with each other. AGMs ensure that company’s stakeholders are updated about the company’s financial situation and direction.
• Private companies are required to file their annual return within 7 months after the end of the financial year.
• All the companies, including ones that are inactive and dormant, are required to file annual returns.
• If even IRAS has exempted a company from filing its income tax return, the company must file its annual return with ACRA as long as the company’s status is “live.”
• Under the Companies Act of Singapore, every company shall appoint a secretary within six months of incorporation.
• A company’s sole director and company secretary cannot be the same individual.

Conclusion

ACRA is the national regulator of companies in Singapore. All the companies operating in Singapore are registered with this government authority. Without this authority’s approval, no company can get registered in Singapore. ACRA has set forth certain statutory requirements for all the companies in the country. In case of non-compliance with any of these requirements, an enforcement action can be taken against them by the authority.

If you want to obtain ACRA’s approval for company incorporation in Singapore, please allow Licensebox consultants to assist you. We will provide you with expert guidance and complete assistance to ensure that your company’s formation process goes as smoothly as possible.