Taking the big step to launch an online business in Singapore is both exciting and overwhelming. One of the important legal steps you must take as a new entrepreneur is registering your business with ACRA (Accounting and Corporate Regulatory Authority). This may seem intimidating, but having all relevant information on hand can simplify this process significantly. In our latest blog post, we look into why proper registration matters, who’s exempt from it, plus how ATHR makes setting up quickly easy for any company looking to get started fast!
Setting up an online business in Singapore is a great way to kick off your entrepreneurial journey. But before you can start operating, you must take care of some administrative and legal matters. One of those is registering your business with the government.
So, are you required to register your online business in Singapore? The short answer is yes; if you want to be a legally registered company in Singapore. As per Singaporean law, you must register a business if you are carrying out any activity for profit on an ongoing basis unless you are exempted. The minimum age for registration is 18 years old.
Who monitors business registration in Singapore?
The Accounting and Corporate Regulatory Authority, or ACRA, is an agency under the Ministry of Finance responsible for regulating businesses in Singapore. All businesses must be registered with ACRA before they can be legally established in Singapore. Registration involves providing the necessary information about your company such as its name, directors, shareholders, etc., and paying a fee. Once registered, you will receive official documents from ACRA confirming your registration and permitting you to operate in Singapore as a legitimate business.
Why should you consider registering your online business?
In addition to keeping in compliance with Singapore's law, registering your company provides many benefits, such as giving your business legal status, protecting your company name, and opening up opportunities for government grants and tenders. It also makes it easier to open a corporate bank account and hire employees.
Registering your online business with ACRA allows members of the public to search and verify information about your business and its owners. It makes it easier for customers to identify, find and transact with your business. On top of making your business more accessible and trustworthy to potential customers, being a properly registered entity allows you to apply for governmental funding programs or grants that may be available to online businesses.
Plus, if you choose to register a company or set up a limited liability partnership, you can keep your personal and business finances separate. This means you're not in danger of losing any of your assets should your business be sued.
Which businesses don't need ACRA registration?
Under Section 4 of the Business Names Registration Act (BNRA), certain types of businesses are exempt from registering with ACRA provided they meet certain criteria. These include sole proprietorships that use the owner’s own name or one that includes their partner’s name; companies with two or fewer members; and companies whose shares are owned by only one shareholder who lives in Singapore or holds a valid work permit issued by the Ministry of Manpower (MOM).
If it’s your first time starting a business, it’s best to check the BNRA for a more exhaustive list of exempted businesses. Alternatively, getting the help of professional service providers in Singapore can simplify your compliance tasks so you can focus on getting your online business up and running, worry-free.
What happens when you fail to follow Singapore laws on business registration?
Failure to comply with Singapore laws on business registration may result in fines and/or imprisonment depending on the severity of the infractions. Violators of ACRA's regulations could end up paying as much as S$10,000 in fines and spending up to 2 years in prison.
Singapore authorities could also prevent non-compliant businesses from operating within the country so it is important to ensure your business meets all relevant requirements before attempting any type of activity within the country's borders.
How can we help you?
Whether you're starting a business online or in the physical world, registering with ACRA is an important step to ensure your online business complies with Singapore's laws. It also provides many legal and financial benefits that can help your online business grow and succeed. If you are still uncertain whether you need to register with ACRA, it is best to consult a professional.
At ATHR, we offer business registration and compliance services to help online businesses get up and running in Singapore quickly and easily. Our incorporation package takes the hassle out of setting up your online business, from managing your business registration to ensuring you meet all relevant compliance requirements. With us, you can rest assured your online business is in good hands.
