ACRA consults on amendments for data digitalisation and corporate transparency
December 2021
ACRA is consulting on proposed amendments to the Companies Act, the Accountants Act, the ACRA Act, the Business Names Registration Act, the Limited Liability Partnerships Act, the Limited Partnerships Act and the Variable Capital Companies Act 2018.
In summary, the proposed amendments:
(a) empower ACRA to obtain data from other agencies or entities to improve filing convenience and data accuracy
(b) strike a balance between corporate transparency and personal data privacy
(c) facilitate digital correspondences with businesses to improve efficiency and support sustainability efforts
(d) enhance transparency of beneficial ownership of companies and limited liability partnerships
(e) streamline processes for service of summons and striking off
Improving Filing Convenience and Data Accuracy
The proposed amendments empower ACRA to:
(a) obtain data from specified government agencies for the purpose of filing
(b) use data from specified entities to verify information on ACRA’s register
The proposal aims to reduce the amount of data filers need would need to file with ACRA, improve convenience to filers and improve the accuracy and value of the data to users.
Balancing Corporate Transparency and Personal Data Privacy
The proposals seek to:
(a) partially mask the identification numbers of all individuals in ACRA’s registers which are made available to the public
(b) introduce a “contact address” as the default address of individuals that will be shown to the public, instead of the individual’s residential address
(c) provide flexibility for ACRA to specify personal data relating to individuals that may need to be collected and to introduce a tiered disclosure framework to calibrate the disclosure of personal data
Facilitating Digital Correspondence to Improve Efficiency and Support Sustainability Efforts
The proposed amendments aim to:
(a) require position holders and shareholders to provide email addresses and mobile numbers, and business entities to provide their business email addresses
(b) allow ACRA’s correspondences and notices to be delivered to and accessed by such individuals and businesses via a virtual mailbox
Enhancing Transparency of Beneficial Ownership of Companies and LLPs
The proposed amendments include:
(a) removing the exemption of certain local companies from the requirement to maintain registers of nominee directors
(b) require companies and limited liability partnerships to verify the accuracy of information in their register of controllers with their controllers annually
(c) introduce a financial penalty of up to S$10,000 on any person who inadvertently, or without intent to mislead or defraud, makes any inaccurate or erroneous statement or information on beneficial ownership to the Registrar under the Companies Act or the Limited Liability Partnerships Act
(d) increase the maximum fine for offences pertaining to the registers of controllers and nominee directors from S$5,000 to S$20,000
(e) extend the prescribed time for companies and limited liability partnerships to update their register of controllers from two business days to seven calendar days
The proposed measures aim to maintain Singapore’s strong reputation as a trusted financial hub and are in line with international standards for combating money laundering, terrorism financing and other threats to the integrity of the international financial system
Streamlining and Clarifying Processes
Clarificatory and streamlining amendments include:
(a) standardising and consolidating the service of summons and other civil originating process under the Acts administered by ACRA
(b) streamlining and clarifying the striking off regime for companies, foreign companies, variable capital companies and limited liability partnerships
(c) clarifying that the Registrar may update the register of directors based on bankruptcy information provided by the Ministry of Lawb
The public consultation exercise will run from 17 December 2021 to 28 January 2022.