Also in the news...
Paul Beare Wins IR Global Member Of The Year
Paul Beare has been named Member of the Year at this year’s IR Global Conference in Amsterdam.
The Biggest Problem With Running A UK Payroll
We explore the biggest problem with running a UK payroll, together with the required functions of payroll calculations and net salary.
Taking It For Granted: How The UK Government Helps Growing Firms
In the UK, a number of government agencies offer a range of grants to help smaller firms to grow and prosper. The grants are typically designed to support innovation, encourage job creation, and underpin growth. In the last few years, a number of new initiatives have emerged, including grants aimed at boosting green technology and digital transformation.
Start-ups Wasting Over 2 Weeks And £37 Billion A Year On Admin
UK start-ups and microbusinesses are wasting over two working weeks every year on admin tasks, including managing mobile phone contracts, choosing energy providers, and buying insurance – according to new research.
The Costs For International Businesses Employing In The UK
In an ever-globalising business landscape, expanding operations to the United Kingdom can be a strategic move for international companies seeking new opportunities.
Singapore: Understanding The Role Of A Company Director
On 15 April 2015, the Singapore Accounting and Regulatory Authority (ACRA) announced legislative changes to Chapter 50 of the Companies Act, effective in two phases: phase one from 1 July 2015 and phase two in the first quarter of 2016 (Q12016). Robin Yoo, Corporate Secretarial Services Director of the Singapore office, explains the changes.
Company Directors and their duties
Under the Companies Act, every company in Singapore is required to have at least one director who resides in the country. If a company has only one member, the sole director can also act as the sole member. Multi-national companies which start their businesses in Singapore often use a local resident director through a third party in order to facilitate the incorporation process and to comply with regulation.
In Singapore, there is no distinction between the two. However, a local resident director who does not take on any executive or managerial function within the company may find they are non-compliant with the relevant statutes that are administered by Singapore’s authorities such as ACRA, Inland Revenue Authority of Singapore or the Central Provident Fund (CPF) Board.
Non-compliance
Local directors who are found to be non-compliant can be summoned to Court. They are obliged to rectify the breaches (for example to file the proper estimated chargeable income, or annual filling with the relevant statutory board, or make the compulsory payment to employees within a time frame) as well as pay any imposed fines.
The responsibilities for third-party local resident director are the same as an executive director of a company, predominantly because the person lives in Singapore. Although foreign-based directors are not required to attend any court hearings in Singapore , when a Warrant of Arrest is issued, they may be detained at Singapore’s Changi Airport upon arrival.
Alternate address
Another change in the proposed amendment is to protect individual privacy. The Directors, CEOs and secretaries will be able to file an alternative address with ACRA, in place of their residential address. Individuals who give a fraudulent address will be subject to criminal sanctions, and unable to provide another alternate address for three years.
The new Section 155B of the Companies Act has empowered ACRA to debar any company’s director who has failed to lodge relevant documents within three months of the prescribed deadlines. The debarred person cannot take on any new appointment as a director or company secretary. They may continue with existing appointments and only when the defaults are rectified, or on other prescribed grounds, will ACRA lift the debarment.
The imposition of a debarment regime is to prevent irresponsible directors from churning out companies by incorporating and thereafter, closing it. The debarment also aims to promote greater compliance awareness and instil the importance of timeliness.
TMF Group secretarial services in Singapore assists with stringent due diligence. Our local experts follow up closely on filling requirements, especially on annual returns with ACRA (previously known as Registry of Companies).
Get in touch with the Singapore team to learn more.