Updating of Company Address within Stipulated Period
Ministry of FinanceSpeakers
Summary
This question concerns the enforcement of and compliance with the 14-day requirement for business entities to update their registered office addresses with the Accounting and Corporate Regulatory Authority (ACRA). Mr Zainal Sapari inquired about the number of penalties issued for non-compliance and the specific measures ACRA utilizes to encourage and ensure timely address updates. Minister Heng Swee Keat responded that while online updates are free, late filings incur a $350 penalty, and providing false information can lead to prosecution and fines of up to $50,000. He reported that between January and August 2017, 640 entities were penalized for late filings, while approximately 64,000 entities complied within the stipulated timeline. ACRA’s compliance measures include onsite inspections, tracing owners via residential addresses if mail is returned, blocking further filings until address updates are completed, and conducting public outreach programmes.
Transcript
38 Mr Zainal Sapari asked the Minister for Finance (a) how does ACRA ensure compliance by business establishments to update their registered address within 14 days of any change in their office address; (b) how many business owners have so far been fined for non-compliance; and (c) what are the measures ACRA has put in place to encourage compliance.
Mr Heng Swee Keat: The law requires all business entities that are registered with the Accounting and Corporate Regulatory Authority (ACRA) to update their registered office addresses through ACRA's filing system. The updates must be made within 14 days of the change in address, except for foreign companies which have 30 days to do so. It is convenient for business entities to update any change in their addresses which can be done online, such as through ACRA's filing system or ACRA-On-The-Go mobile app. Filing such updates is also free.
The penalty for late filing is up to $350. In addition, if a company fails to update its registered office address, the company and its directors can be prosecuted and be liable on conviction to a fine of up to $5,000 and a penalty for each day of default after conviction of the offence. Furthermore, if a business entity is found to have deliberately not updated its address or used a false address to avoid contact with creditors or regulators, ACRA will not hesitate to prosecute the business entity and its directors or owners in Court. Under the various ACRA-administered Acts, it is an offence to provide false information to ACRA. For instance, an offender is liable, on conviction, to a fine of up to $50,000 or to imprisonment of up to two years, or to both under the Companies Act.
From January to August 2017, around 64,000 business entities updated their registered office addresses within the stipulated timelines. Over the same period, 640 business entities were late in doing so and had to pay late filing penalties.
To encourage compliance by business entities, ACRA has put in place various measures. First, ACRA conducts regular onsite inspections to check the validity of registered business addresses. Second, ACRA will write to a company director or business owner at his residential address if ACRA's official correspondences with the business entities are returned undelivered or ACRA receives feedback on an outdated registered office address. The business entity has to update its registered office address before it is allowed to carry out any other filings with ACRA. Third, ACRA conducts outreach programmes, such as ACRA@The Heartlands, to inform business owners, directors and interested members of public of the various obligations of running a business.