{"id":991,"date":"2024-10-16T06:09:12","date_gmt":"2024-10-16T06:09:12","guid":{"rendered":"https:\/\/gohrbpo.com\/blog\/?p=991"},"modified":"2024-10-16T06:09:12","modified_gmt":"2024-10-16T06:09:12","slug":"companies-act-singapore","status":"publish","type":"post","link":"https:\/\/gohrbpo.com\/blog\/companies-act-singapore\/","title":{"rendered":"What Changes Have Been Made to the Companies Act Recently?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Businesspersons, established and budding would-be entrepreneurs operating in Singapore must maintain a close watch on changes in the law. One law getting much focus lately is the Companies Act. Let us examine the recent updates and how they may affect you or your business.<\/span><\/p>\n<h2><b>A Brief Overview of the Companies Act<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The question is, what exactly is the Companies Act? Well, it is the main law regulating the incorporation, operation, and dissolution of companies in Singapore. Formed as far back as 1967, it&#8217;s the kind of legislation that always evolves with the times.\u00a0<\/span><\/p>\n<h2><b>Companies Act Singapore: Recent Changes and Their Impact<\/b><\/h2>\n<h3><b>1. Expansion of Digital Capabilities (2024)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In 2024, the Accounting and Corporate Regulatory Authority (ACRA) <\/span><a href=\"https:\/\/www.acra.gov.sg\/legislation\/legislative-reform\/acra-(registry-and-regulatory-enhancements)-bill\" target=\"_blank\" rel=\"noopener\"><b>introduced a suite of digital enhancements to streamline business processes<\/b><\/a><span style=\"font-weight: 400;\">. This includes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enhanced e-filing systems for annual returns and financial statements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">AI-powered chatbots for basic inquiries<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Blockchain-based verification for certain corporate documents<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These changes aim to reduce paperwork and make compliance easier for businesses of all sizes.<\/span><\/p>\n<p>Also Read:- <a href=\"https:\/\/gohrbpo.com\/blog\/ais-submission\/\">Guidelines for Vendors on AIS Submission in Singapore<\/a><\/p>\n<h3><b>2. Sustainability Reporting Requirements (2025)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With the global push towards sustainability, Singapore isn&#8217;t falling behind. Starting in 2025, all listed companies will be required to include sustainability reports in their annual filings. This includes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Disclosure of environmental impact<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Social responsibility initiatives<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Corporate governance practices<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">While this primarily affects listed companies, it&#8217;s a good idea for all businesses to start thinking about their sustainability practices.\u00a0<\/span><\/p>\n<h3><b>3. Simplified Striking Off Procedures (2024)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Sometimes, a business just doesn&#8217;t work. The striking-off process for companies will be made easier in 2024. Now, companies can apply to strike off online through the ACRA BizFile+ portal if they meet certain criteria. This important step will help business owners to be less hassled and less costly if they need to close down.<\/span><\/p>\n<h3><b>4. Improved Protection for Minority Shareholders (2025)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To provide minority shareholders with a degree of protection, the Companies Act was amended in 2025 to introduce:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mandatory independent valuation of certain transactions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expanded rights of shareholders to call extraordinary general meetings<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increased disclosure on related party transactions<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These amendments are expected to further improve corporate equity and clarity.<\/span><\/p>\n<h3><b>5. Goodbye to Audit Exemption Thresholds (2024)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This is good news for smaller businesses! In 2024, audit exemption thresholds were revised. More small businesses can be granted audit exemption, saving money and time. The new thresholds are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Annual revenue of less than 10 million (up from 5 million);<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total assets of less than 10 million (up from 5 million);<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of employees less than 50 (unchanged).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Meet two of these criteria, and you could be off the hook for a mandatory audit.\u00a0<\/span><\/li>\n<\/ul>\n<h3><b>6. Introduction of Variable Capital Companies (VCCs) Framework Updates (2025)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The Variable Capital Companies (VCC) framework was reinvigorated after its introduction in 2020 through its substantial 2025 amendments. They included:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A wide variety of units<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enhanced tax breaks for VCCs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Easier registration<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">With these updates, Singapore aims to further establish itself as a fund management hub globally.\u00a0<\/span><\/p>\n<p>Also Read:- <a href=\"https:\/\/gohrbpo.com\/blog\/singapore-tax\/\">Optimizing Your Singapore Tax: Claiming Business Expense Deductions<\/a><\/p>\n<h2><b>Companies Act Singapore: What These Changes Mean to You<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">This review of the Companies Act could embody a game-changer for you if you are already running a business in Singapore or are seeking to start one. Below are a few takeaways worth considering:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Get digital:<\/b><span style=\"font-weight: 400;\"> Given ACRA&#8217;s mandate for digital solutions, getting comfortable with online platforms and computer-aided filings is of utmost importance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\"><strong>Think sustainability:<\/strong> Even if you are not obliged to prepare a sustainability report, it is good for businesses to start to give more thought to your milling and social impacts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Know Your Rights:<\/b><span style=\"font-weight: 400;\"> Whether in majority or minority shareholders, being set on the rights and responsibilities is absolutely important.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Find out the requirements for auditing:<\/b><span style=\"font-weight: 400;\"> As a small company, some exemptions to audit obligations might save you audit costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Consider the new business structures:<\/b><span style=\"font-weight: 400;\"> The updates to the VCC framework might open entirely new opportunities for fund management and investment, all in their entirety.\u00a0<\/span><\/li>\n<\/ol>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Companies Act in Singapore is not stagnant; it acknowledges business needs and the global economic environment changes. Keeping abreast with these changes would be to ensure your business is compliant but also to capitalize on opportunities presented.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mind you, this blog post merely gives an overview of recent changes. It is advisable to seek professional legal and financial guidance that is tailored specifically to your business needs. The business world is ever-changing and thus are the rules regulating it. Stay up to date, stay nimble, and your businesses would be well-positioned to thrive in Singapore&#8217;s dynamic economy.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Businesspersons, established and budding would-be entrepreneurs operating in Singapore must maintain a close watch on changes in the law. One law getting much focus lately is the Companies Act. Let us examine the recent updates and how they may affect you or your business. A Brief Overview of the Companies Act The question is, what [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[],"class_list":["post-991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-singapore-tax"],"_links":{"self":[{"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/posts\/991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/comments?post=991"}],"version-history":[{"count":1,"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/posts\/991\/revisions"}],"predecessor-version":[{"id":995,"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/posts\/991\/revisions\/995"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/media\/992"}],"wp:attachment":[{"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/media?parent=991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/categories?post=991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gohrbpo.com\/blog\/wp-json\/wp\/v2\/tags?post=991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}