What Is ACRA & What Is It Responsible For?

Starting a business in Singapore is exciting, but navigating the initial legalities can leave even the most enthusiastic entrepreneur feeling confused. Fear not! Understanding the role of the Accounting and Corporate Regulatory Authority (ACRA) under the Ministry of Finance is key to ensuring your business thrives and stays compliant, including keeping your business address updated. So, let’s demystify ACRA and its responsibilities, empowering you to focus on what you do best: building your dream.

What is ACRA and how does it work?

ACRA stands for the Accounting and Corporate Regulatory Authority of Singapore. It is a statutory board under the Ministry of Finance of the Government of Singapore that serves several important functions. They oversee business registration, financial reporting, public accountants, and corporate service providers in Singapore. In addition to regulating these areas, ACRA is responsible for advancing the accountancy sector and establishing accounting standards for companies, charities, co-operative societies, and societies. By fostering a trusted and dynamic business environment, ACRA promotes innovation, growth, and contributes to positioning Singapore as the best place for a leading global business hub.

Its primary role is to supervise corporate compliance, ensuring companies adhere to the necessary steps for registration and annual reporting. ACRA is responsible for monitoring financial reporting, disclosure requirements, and personal information protection. Through its online portal, BizFile login, ACRA provides public access to business information, financial statements, and company registration details, promoting business data transparency and regulatory compliance. Additionally, ACRA offers a convenient and efficient way for businesses to access and manage their information through the ACRA portal, BizFile+. This platform allows for the submission of statutory documents and retrieval of information about business entities, with over 1 million transactions taking place annually.

History and Structure

ACRA was formed on April 1, 2004, following the merger of the Registry of Companies and Businesses (RCB) and the Public Accountants’ Board (PAB). This merger aimed to create synergies between monitoring corporate compliance with disclosure requirements and regulating public accountants performing statutory audits.

What Does ACRA Do?

ACRA plays a crucial role in overseeing and enforcing corporate compliance among businesses, ensuring strict adherence to their disclosure obligations. The regulatory authority diligently monitors the activities of businesses to guarantee they meet the necessary legal requirements.

In addition to its focus on corporate compliance, ACRA is entrusted with the responsibility of regulating public accountants engaged in statutory audits. By imposing stringent regulations on auditing professionals, ACRA contributes to the maintenance of high standards in financial reporting and accountability.

The Functions Of ACRA

ACRA performs several key functions to regulate businesses and uphold corporate governance. In the establishment of a new business, ACRA assumes several key roles:

Business Registration: Every new company in Singapore is required to undergo registration with ACRA, a process efficiently facilitated through the user-friendly BizFile+ system.
Regulatory Oversight: ACRA serves as the regulatory authority overseeing the compliance of companies and public accountants, ensuring adherence to statutory obligations and legal requirements.
Unique Entity Number (UEN) Provision: ACRA provides companies with a Unique Entity Number (UEN), a distinctive identifier enabling them to operate seamlessly within the business landscape of Singapore.
Data Collection: ACRA collects comprehensive data on key stakeholders involved with a company, including directors, corporate secretaries, shareholders, and other pertinent entities. This information is crucial for maintaining an accurate and updated registry of businesses in Singapore.

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Who Needs To Register With ACRA?

If you’re conducting business in Singapore, registering with ACRA is mandatory. This applies to:

Sole proprietorships: Even if you’re the sole owner, registering formalises your business and grants access to various benefits.
Partnerships: Whether you’re forming a general partnership or a limited liability partnership, ACRA registration is essential.
Companies: From private limited companies to public companies, all legal entities operating in Singapore must register with ACRA.

Don’t wait until it’s too late! Registering early ensures your business operates smoothly and legally from the get-go.

What Is BizFile & BizFile+?

Initially known as Bizfile, BizFile+ made its debut in 2004, evolving into an online portal designed to facilitate the uploading, storage, and retrieval of business data for companies operating in Singapore.

Serving as ACRA’s online filing portal, BizFile+ acts as a comprehensive platform for companies to initiate various applications and submissions seamlessly.

With a wide array of more than 400 services available online to the public, BizFile+ significantly enhances the ease of doing business in Singapore. The accessibility of these services online streamlines numerous processes, marking a notable improvement from the previous operational landscape.

Businesses can leverage the BizFile+ system for dual purposes – submitting essential documents to ACRA and retrieving valuable information about other businesses. This dual functionality contributes to a more efficient and interconnected business environment in Singapore.

Common uses for BizFile+

BizFile+ is commonly used by business owners, professionals, and stakeholders in the following ways:

Company Registration: Registering various types of companies, including local, foreign, LLP, business entities, and Public Accountants.
Online Company Information Search: Conducting online searches to retrieve information about registered companies.
Information Purchase: Purchasing information about entities registered with ACRA.
Document Upload and Filing: Uploading documents and filing necessary changes mandated by ACRA, such as Annual Reports and updates to director or company information.

ACRA Filing Requirements

To ensure regulatory compliance, it is crucial for businesses to understand ACRA’s filing requirements. This includes submitting annual returns and financial statements in accordance with the Companies Act. ACRA’s regulatory framework ensures companies adhere to corporate compliance, registration, and disclosure requirements, including notifying ACRA of any changes to the company name. By providing the necessary information and documents, businesses fulfill their obligations to ACRA, promoting transparency, and maintaining trust among stakeholders.

Information and documents needed for filing with ACRA

When filing with ACRA, companies are required to provide specific information and documents, such as:

Financial statements: Companies must submit accurate and up-to-date financial statements for regulatory compliance.
Company information: Information regarding business activities, company address, and directors’ details must be provided.
Personal information: Personal information of directors and shareholders, such as names and identification numbers, may be required.

These information and documents are necessary for compliance with ACRA’s regulatory requirements, promoting transparency, and ensuring the accountability of businesses.

ACRA compliance requirements

ACRA imposes certain statutory obligations, requiring companies to file specific documents and undertake annual actions to ensure ongoing compliance.

Company registration: Businesses must complete the registration process with ACRA to establish their legal presence in Singapore.
Annual return filing: The timely submission of annual returns, including financial statements, is essential to comply with ACRA regulations.
Disclosure requirements: Companies must disclose relevant information, such as changes in company structure, directors, and business activities, to ACRA.
Financial reporting: Accurate and reliable financial reporting, in compliance with ACRA’s standards, is essential for corporate compliance.
Personal information protection: Adhering to ACRA’s guidelines for protecting personal information ensures compliance with data privacy regulations.

By meeting these compliance requirements, businesses maintain regulatory adherence, financial transparency, and accountability. It helps create a business environment that inspires credibility, trust, and confidence among stakeholders.

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ACRA fees and penalties

Understanding ACRA’s fees and penalties is crucial for business owners to avoid compliance issues and financial consequences. Here’s what you need to know:

Fees: ACRA imposes fees for various services, such as annual return submissions, company information updates, and name reservation. The fees vary depending on the specific service and business entity.

Penalties: Failing to meet ACRA’s regulatory requirements may result in financial penalties and business registration issues. Penalties can range from financial fines to suspension or striking off companies.

It is crucial for business owners to be aware of ACRA’s compliance requirements, deadlines for financial reporting, and the associated fees. By staying up to date, businesses can ensure regulatory compliance, avoid penalties, and maintain a strong business reputation.

Conclusion

In conclusion, ACRA is not just an administrative body; it’s a partner in your business journey. For entrepreneurs and business owners in Singapore, understanding what ACRA is and its responsibilities is a cornerstone of success. From registration to compliance and beyond, ACRA ensures the business landscape remains robust and trustworthy.

As you venture into the business realm, keep in mind the importance of ACRA in shaping a conducive environment for growth. Embrace the responsibilities it brings, and you’ll find your business thriving in the vibrant Singaporean market.

How Grof SG Can Assist with ACRA Compliance?

Grof Singapore provides expert assistance in ensuring full compliance with the Accounting and Corporate Regulatory Authority (ACRA) requirements. From company incorporation to annual filings, we guide businesses through every regulatory step. Our services include preparing and submitting financial statements, managing corporate secretarial duties, and ensuring timely filing of annual returns. By partnering with Grof SG, you can focus on growing your business while we handle all ACRA-related compliance, ensuring that your company meets its statutory obligations and avoids penalties. Let Grof SG help you stay compliant with ease and efficiency.