Company Registration Number
Essentials Of Securing A Company Registration Number: Knowing The Penalties For Unregistered Businesses
Singapore imposes strict business rules that every business entity has to comply with. Along with the benefits of company registration, such as the host of tax benefits that startup companies are entitled to, there are also penalties imposed to those who fail to provide or fulfill requirements subscribed by Singapore law.
Singapore’s Business Registration Act, specifically Section 27(a), qualifies the grounds for imposing penalties to erring companies, and the terms for such penalties.
Company Registration Number: What Are The Grounds For Penalties?
Companies who operate without applying for business registration, and thereby lacking a company registration number, are subject to penalties. Businesses whose permits or licenses to operate have already expired or were cancelled but who continue to do business are also punishable by Singapore law. This is why businesses have to bear in mind the important registration dates and renew their licenses to avoid incurring any penalties from the government. Likewise, companies should never start operations without prior registration, because late registration is also equivalent to an offence depending on the number of months from the start of operations to the actual registration, and will be subjected to fines as well.
Company Registration Number: What Are The Corresponding Penalties?
Section 27(a) of the Business Registration Act says that erring companies will be fined a maximum of S$5,000, imprisoned for a maximum of a year, or both.
For businesses who register less than 30 days after the start of operations, a fine of S$50 is imposed. Between 31 and 60 days, S$75 will be fined, while S$100 and S$150 will be imposed on delays between 61 and 90 days, and 91 and 180 days, respectively.
From 181 to 365 days, companies will have to pay S$200; S$250 between 366 and 730 days; S$300 between 731 and 1,095 days; and S$350 for more than 1,096 days.
To avoid these penalties, which the Accounting and Corporate Regulatory Authority (ACRA) imposes, all businesses must be registered before formal operations. Being penalized for not registering on time is also a very bad start for any business.