ACRA Registration Requirements for Businesses in Singapore
Starting a business in Singapore is a dream for many. The country is known for its strong economy, simple tax system, and support for startups. But before you can begin, you must complete ACRA registration. The Accounting and Corporate Regulatory Authority (ACRA) is the body that oversees company registration in Singapore.
ACRA Singapore Registration is not only a legal step, it also gives your business trust and status. Once registered, your company is seen as a valid entity. This builds confidence with banks, clients, and partners.
In this guide, we will cover the main requirements, the key documents, and the full process of registering with ACRA in clear, simple terms.
Why ACRA Registration Is Important
- ACRA registration gives your business a legal identity in Singapore. This means you can operate without fear of penalties.
- ACRA Singapore Registration allows you to open a business bank account. Banks will not approve an account without proper registration.
- It helps you sign contracts and agreements. Registered entities are seen as more reliable by clients.
- It builds trust with clients, suppliers, and investors. A registered company is seen as stable and professional.
- It is required before applying for business licenses. Without ACRA registration, you cannot apply for other permits.
Who Needs ACRA Singapore Registration?
- All private limited companies must complete the ACRA Singapore Registration. This rule applies even if there is only one owner. It gives the company legal status to run in Singapore.
- Sole proprietors must also register their trade name. This step ensures that no other person can use the same name. It helps build trust with clients and suppliers.
- Partnerships must go through ACRA registration too. This makes the partnership valid and recognized under Singapore law. It also protects the rights of each partner.
- Foreign companies that want to set up in Singapore must register with ACRA. They cannot operate without approval from the authority. This process gives them the right to do business in the country.
- Even online and home-based businesses must register. Legal recognition is needed for all types of business, big or small. This helps owners avoid penalties and gives them more growth chances.
Types of Business Structures under ACRA Registration
1. Sole Proprietorship
- Owned by one person. This is the easiest business to set up.
- The owner has full control, but also full liability for debts.
2. Partnership
- Owned by two or more people. Partners share profits and losses.
- Each partner is also responsible for debts and decisions.
3. Limited Liability Partnership (LLP)
- Combines features of a partnership and a company. It protects owners from full liability.
- Popular with service providers like consultants and law firms.
4. Private Limited Company (Pte Ltd)
- A separate legal entity from the owners. This protects personal assets from business risks.
- It is the most common choice because it offers tax benefits and credibility.
Key Requirements for ACRA Singapore Registration
Business Name
The name of your business must be approved by ACRA. It cannot be the same or too close to another registered name. Once approved, it gives your company a clear and unique identity in the market.
Directors
At least one company director must be a Singapore resident. The director must be at least 18 years old and not declared bankrupt. This rule ensures that there is a local person who can take charge of compliance.
Shareholders
Your company must have at least one shareholder. The shareholder may be a person or even another company. Both locals and foreigners are allowed to hold shares in a Singapore company.
Company Secretary
Every company must appoint a secretary within six months of registration. The secretary must live in Singapore and is in charge of filing records and ensuring compliance with ACRA.
Paid-Up Capital
The minimum paid-up capital required is just SGD 1. You can add more funds later as your company expands and needs more growth capital.
Registered Address
A local Singapore address is required for the business. The address must be a real, physical location and not a P.O. Box. This address will be used for all official notices and communication.
Documents Needed for ACRA Registration
- Approved business name. This confirms your identity.
- Details of all shareholders with their identification. It ensures transparency.
- Details of directors, both local and foreign. This makes compliance easier.
- Registered office address proof. A utility bill or rental contract is accepted.
- Passport copies for foreign owners. NRIC for local owners.
- Company constitution or Memorandum of Association. This is the main legal document.
Steps for ACRA Singapore Registration
Timeline for ACRA Registration
- Name approval is done within one working day.
- Company registration usually takes 1–2 days.
- If more approvals are needed, it can take up to two weeks.
Fees for ACRA Singapore Registration
- Name Application: SGD 15. A must for all.
- Sole Proprietorship/Partnership: SGD 100. A one-time registration fee.
- Limited Liability Partnership (LLP): SGD 115.
- Company Registration: SGD 300. The most common business type.
After ACRA Registration – What to Do Next?
- Open a corporate bank account. It makes handling money easier.
- Register for GST if turnover is above SGD 1 million. This is a tax requirement.
- After ACRA registration, you can apply for business licenses if your industry requires it. Some trades need special permits.
- Maintain proper accounts and bookkeeping. This avoids compliance issues later.
- File annual returns with ACRA to stay compliant. This is a legal duty.
Renewal of Business Registration
Sole Proprietorships and Partnerships
Sole Proprietorships and Partnerships must renew their registration every 1 or 3 years. Renewal keeps the license valid. It also allows the firm to run without breaks. A renewed license shows that the firm is still active.
Private Limited Companies
Private Limited Companies do not need to renew their registration. They must file yearly returns to keep their records current. Filing on time helps them stay compliant. It also builds trust with clients and partners.
Avoiding Penalties
On-time renewal helps avoid late fees or fines. If the license is not renewed, the firm may be struck off or marked as inactive. Restarting later can lead to extra costs and long delays.
Proof of Valid Business
A renewed license proves that the firm is legal and valid. Banks, investors, and agencies often ask for this proof. It is needed for loans, grants, or contracts. Renewal builds trust and shows full compliance.
Smooth Business Operations
Timely renewal keeps the firm safe from legal risk. It also helps build good ties with banks, vendors, and clients. Renewal gives trust, ease, and peace of mind.
Penalties for Not Registering
- Running a business without ACRA registration is illegal. This can lead to fines.
- Repeated violations may even result in jail. Singapore takes compliance very seriously.
- Contracts signed by unregistered businesses may not be valid. This can harm your reputation.
Benefits of ACRA Singapore Registration
- Provides legal recognition and protection. This gives peace of mind.
- Creates trust with clients and investors. People prefer registered firms.
- Gives access to government grants and support schemes. Many benefits are only for registered firms.
- Makes it easier to raise funds. Banks require proper registration for loans.
- Protects your business name from being used by others. This secures your brand.
Common Mistakes in ACRA Registration
Setting up a business in Singapore starts with ACRA registration. While the process is clear, many business owners make small mistakes that create big delays. Some errors can even lead to rejection. Knowing these mistakes will help you avoid problems and complete the process faster.
Here are the most common mistakes seen during ACRA registration:
1. Choosing a name that is not unique
A company name must be different from all others in the register. If it is too close to an existing one, ACRA will not approve it. Many people skip the name search before applying. Checking for uniqueness early can save time.
2. Not appointing a local director
Singapore law needs every company to have at least one local director. This person must be a citizen, PR, or someone with a valid pass. Without this, the application will fail. Foreign owners often forget this key rule.
3. Submitting wrong or missing documents
All details such as IDs, addresses, and shareholder data must be correct. Even a small error, like a spelling mistake or missing proof, will delay the process. Careful review of each document is the best way to avoid rejection.
4. Forgetting to hire a company secretary
Every new company must appoint a qualified secretary within six months. Many new owners delay this and end up paying fines. The secretary helps manage records and keeps the business compliant with ACRA.
5. Not reporting business changes to ACRA
After registration, any change—such as a new address, director, or shareholder—must be filed with ACRA. Some companies ignore this, which can lead to penalties. Timely updates keep your records clean and prevent future issues.
Tips for Smooth ACRA Registration
- Choose the right business structure at the start. It avoids costly changes later.
- Check if your business needs special permits. Some sectors need extra approval.
- Keep all key documents ready. This helps prevent delays.
- Hire a professional firm if you feel unsure. They make the process quick and easy.
- Update your company details with ACRA often. This keeps you compliant.
Role of Professional Firms in ACRA Registration
Many business owners choose experts for ACRA registration.
- They prepare and file documents with care. This lowers the risk of rejection.
- They know compliance rules well. This helps avoid legal issues later.
- They save time and make the process smooth. You can focus on running your business.
- They also guide you on tax planning and setup. This brings long-term gains.
- They assist foreign owners in meeting director rules. This makes registration possible.
ACRA registration is required to start a business in Singapore. The process may seem simple, but even a small error can cause delays or rejection. Many new owners feel lost with forms, rules, and documents. This is why expert support can save both time and stress.
At Meru Accounting, we make the ACRA Singapore Registration smooth and clear. Our team checks every detail, ensures name approval, and meets all the rules. We also guide you after setup with tax, books, and compliance. With more than ten years of global work in accounting, Meru Accounting has built trust with firms across many fields.
By choosing us, you avoid mistakes and start your venture the right way. We provide expert advice, full support, and tailored help so you can grow while we handle the rules.
FAQs
- What is ACRA registration in Singapore?
It is the process of registering a business with the Accounting and Corporate Regulatory Authority. - Can a foreigner register a company in Singapore?
Yes, but at least one local director must be appointed. - How long does ACRA Singapore Registration take?
It usually takes 1–2 working days if documents are in order. - What is the cost of registering a company with ACRA?
The cost is SGD 300 for a private limited company. - Do I need a company secretary for registration?
Yes, a secretary must be appointed within six months. - What happens if I don’t register my business?
You may face fines, legal action, and invalid contracts. - Do I need an office address for ACRA registration?
Yes, a local Singapore address is required for all businesses.
