Companies Act

Q: What are the main penalties for not complying with the Companies Act?

&lt;p&gt;&lt;span style=&quot;color: rgb(27, 28, 29)&quot;&gt;Non-compliance can lead to fines for the company and its directors, default penalties, and in serious cases, prosecution or having the company struck off the register by ACRA.&lt;/span&gt;&lt;/p&gt;

Q: Does the Companies Act apply to all business types?

&lt;p&gt;&lt;span style=&quot;color: rgb(27, 28, 29)&quot;&gt;No, it primarily applies to incorporated companies like Private Limited Companies. Other structures like Sole Proprietorships and Partnerships are governed by different legislation.&lt;/span&gt;&lt;/p&gt;

Q: Who enforces the Companies Act?

&lt;p&gt;&lt;span style=&quot;color: rgb(27, 28, 29)&quot;&gt;The respective national regulator enforces the Act. In Singapore, it&#x27;s ACRA.&lt;/span&gt;&lt;/p&gt;

Last Updated 25 Jul 2025

The Companies Act is the primary legislation that governs the incorporation, administration, director's duties, shareholder rights, and winding up of all companies in a specific jurisdiction (e.g., Singapore's Companies Act 1967, Malaysia's Companies Act 2016). It is the foundational rulebook for corporate conduct and governance.

Why is the Companies Act Important?

Adherence to the Companies Act is mandatory for all incorporated companies. It dictates how your business must operate legally, from holding an Annual General Meeting (AGM) to maintaining statutory records and defining the fiduciary duties of directors. Compliance ensures good corporate governance and protects the company and its stakeholders from legal risks.

Frequently Asked Questions

What are the main penalties for not complying with the Companies Act?

Non-compliance can lead to fines for the company and its directors, default penalties, and in serious cases, prosecution or having the company struck off the register by ACRA.

Does the Companies Act apply to all business types?

No, it primarily applies to incorporated companies like Private Limited Companies. Other structures like Sole Proprietorships and Partnerships are governed by different legislation.

Who enforces the Companies Act?

The respective national regulator enforces the Act. In Singapore, it's ACRA.