Bogus Charges for Business Registration Services
Ministry of FinanceSpeakers
Summary
This question concerns actions taken by the Accounting and Corporate Regulatory Authority (ACRA) to protect businesses from deceptive registration services, as raised by MP Mr Lim Biow Chuan. Minister for Finance Heng Swee Keat clarified that ACRA is the sole registration body and prosecutes those misusing its name, with offenders facing a maximum $10,000 fine and six-month imprisonment. He highlighted that business entities must display their registration numbers or face a $1,000 fine, a requirement ACRA has enforced through investigations of suspected breaches. Minister for Finance Heng Swee Keat advised companies to exercise vigilance by using ACRA’s free search function to verify third-party identities and carefully perusing all contract terms. Lastly, he urged businesses to report suspected wrongdoings to ACRA or make a Police report to prevent falling victim to unsolicited or fraudulent correspondences from third parties.
Transcript
30 Mr Lim Biow Chuan asked the Minister for Finance what actions are taken by the Accounting and Corporate Regulatory Authority (ACRA) to protect companies or businesses from being misled or deceived into paying for registration services purportedly rendered by ACRA or its related agencies.
Mr Heng Swee Keat: The Accounting and Corporate Regulatory Authority (ACRA) is the only statutory body responsible for the registration of companies and businesses in Singapore.
ACRA does not condone any attempt to use its name or a name resembling that of ACRA's to deceive or cause confusion to the public. ACRA will not hesitate to investigate suspected breaches and prosecute offenders. Under the ACRA Act, an offender will face a maximum penalty of $10,000 and six-month imprisonment, as well as a further fine of up to $250 per day for a continuing offence after conviction.
While non-government organisations can collect information from companies through private agreements, there are safeguards against such organisations trying to pass themselves off as Government entities. Letters from Government agencies, such as ACRA, have distinct letterheads, with their names and logos. Companies and other business entities are also required to state their name and registration number in all business correspondences. Those who breach this requirement are liable for a maximum fine of $1,000. In the past four years, ACRA has investigated 10 business entities for failing to properly state their name and/or registration number.
In addition to having these safeguards in place, companies should exercise vigilance when dealing with any unsolicited letter or email from third parties. First, companies should check the identity of the third party or check with ACRA before engaging third parties. Companies can make use of the free business entity search function on ACRA's website to verify the identity of the third party. Second, companies should peruse carefully all the terms and conditions set out by the third party before entering into any form of agreement. Third, companies should alert ACRA if there are any suspected wrongdoings or misrepresentations by third parties. Where companies become a victim, they should make a Police report.