Whether you are an individual or a business entity, you might want to check on a particular Singapore company to verify its details before entering into any business dealings with it. For example, it might be prudent for an individual or business entity to verify the position of an individual before entering into a contract. This would ensure that the individual does have the authority and holds a particular position in the company. Also, it might be useful to check on a company’s paid-up capital before entering into a significant contract with it. This is to better understand the company’s financial position. This can safeguard you against adverse financial consequences.
To check the details of a registered company in Singapore, you should use these two methods:
- The entity search function on Bizfile+
- Purchase the business profile from Bizfile+
Here are the things that you should look out for:
- The status of the company
This would state whether the company is “live” or otherwise. You should see the status of the company as “live”. It it shows “struck off” or other similar statuses, then this company may not be a “live” company.
This would be the registered address of the company. This can either be the operational address of the company or it may just be a registered office. For example, some companies may have their operations located in a different location and they may choose to have the registered office with the corporate service provider as that will be the address where the company receives its official mails.
This would indicate the business nature of the company. This should match the business nature of your dealings with it. For example, if you are purchasing construction equipment from the company but the company is listed as a tuition centre, then this should alert you to the possibility that there may be something amiss with your dealings with it.
- Annual returns (AR)
All companies are required to submit their annual returns to the registrar within 30 days of holding their annual general meeting. The last filed annual returns should be within the last year or so. If the last annual returns is many years ago, this might indicate that this company has not been complying with the registrar’s requirement and it may not be an active company.
- Annual general meeting (AGM)
Just like the annual returns, this is a mandatory annual requirement. Although certain companies may be exempted or may choose not to hold the AGM altogether (this is possible if certain procedures are met). Similarly, if the last AGM is a could of years ago, it could mean that the company may not be an active company.
- Details of the officers of the company
The business profile would show the details of the officers of the company. It should match with the person whom you are dealing with especially if that person claims to be a director of the company. Please note that the term director does not encapsulate positions like sales director or marketing director unless these people are also listed directors of the company.
- Paid-up capital
This would show how well a company is capitalised. This may not be a good indication of the financial strength of a company but it would give some indication as to the nature of the company. If the company has a paid-up capital of $1, this company may not be a very credible company as it might indicate a certain level of risk such that the shareholders only decided to place a minimum amount into the company.
- Financial statements
The financial statements would indicate the financial position of a company. You should look for thoroughly compiled financial statements. They should indicate the financial health of the company.
If you are looking to check on the status and profile of a certain company, Singapore Secretary Services can help with this matter. The process may be onerous and time-consuming. We do provide searches on the company as well as its officers and shareholders. We can provide the service of screening the company and these individuals for any signs of money laundering, terrorism financing, legal suits, adverse news and any relevant information that may assist you in making a better business decision.
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Singapore Secretary Services
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