A1CORP- Guide To: Singapore Business Registration Penalties & Offences
The responsibility of a business owner is to first ensure that their company is fully capable of meeting compliance requirements after establishing Singapore business registration. Failure to do so can actually put the company at risk for incurring penalties issued by the governing authorities, thereby impacting the company’s ability to provide services in Singapore. To shed light on the matter, here is a simple guide to corporate penalties and offences that business owners should be aware of.
Some of the corporate offences that companies may unwittingly encounter include:
Corporations not owning registered office addresses
By legal requirements in Singapore, corporations should have a registered office address after Singapore business registration. This is so that all important notices can be received. The registered office address should be accessible to members of the public for no less than 3 hours on ordinary business hours each day with weekends and public holidays excluded. Not owning registered office addresses can actually count as a corporate offence.
Not Publishing Corporation Name or Registration Number
By legal requirements, the corporation name should appear within the corporation’s common seal, in all business stationery and official documentation. This is so that investors and business partners can verify the identity of the corporation by searching them up through online ACRA directories.
Failing to meet Resident Director Requirement
Another requirement business owners have to meet would be having at least 1 local resident director in Singapore. Directors of corporations are usually tasked with the responsibility of managing important business affairs. They are the ones who decide on giving out directions to all sectors in the corporation after Singapore business registration is completed. Resident directors can be permanent residents, entrepass holders or Singaporean citizens.
If the directors have become officially bankrupt, they will be forbidden from participating in business activities. The only exceptions include acquiring written permission from official assignees or leave issued by the court. If the director is found guilty, the individual can actually be liable for corporate penalties not exceeding $10000 or imprisonment for up to 2 years.
Another disqualification factor as a director would be that they have been convicted of offences committed in either local or international environments. This could be punishable with imprisonment for up to 3 months.
These individuals are not able to interact with management in the corporation, directly or indirectly. The only way to do so would be to come into contact with the Court. If found guilty, they can be liable for conviction in either fines (not exceeding $10000) or imprisonment (not exceeding 2 years), or even both!
Not updating Registrar with changes
Business owners should understand that companies are usually required to lodge notices for changes within 14 or 30 days depending on their corporation type to the registrar. Failing to comply in notifying of changes in all essential information is counted as a corporate offence and every company officer can actually be found guilty and liable to a fine (not exceeding $5000) apart from the default penalty.