Singapore Defers Effective DatesMar 10, 2015
The original date that the Accounting and Corporate Regulatory Authority is making the changes to the Companies Act and Business Names Registration Act effective is being deferred. With the deferment, the changes will not actually go into effect until the second quarter of 2015. This is a significant development for foreign companies in Singapore.
There have been changes made to the Companies Act and Business Names Registration Act over time. This is not the first occurrence. The Companies Act was originally put into legislation in 1967, but there have been many changes made to this act in Singapore over the years. The most recent changes have been made in 2014, but they have been delayed due to the push back of the effective date for changes.
There are different ideas about the reason for the deferred effective date, but most signs point toward better preparedness. It will now be possible for all agencies and stakeholders to have more time to get ready for the changes that have been made to the Companies Act and Business Names Registration Act. Once these changes officially go into effect businesses will be out of time. Due to the deferred effective date now businesses are given time to prepare. Deferring the effective date is designed to help delay all changes that will eventually go into legislation in Singapore.
There are various aspects of the Companies Act and Business Names Registration Act that will now be delayed. The simplified fee structure that was first introduced in October of 2014 will not go into effect until these other changes are also put into legislation. Even though the proposed effective date is said to be sometime in the second quarter of 2015 the actual date is still not known yet. It is believed that ACRA’s will announce the effective date about 2 months beforehand.
The changes that will be going into effect primarily impact how foreign companies operate and function in Singapore. The biggest change that will take place involves the ability of small foreign companies in Singapore to be exempt from audits. This is a significant change and could impact more than 25,000 foreign companies currently in Singapore.