As Singapore strengthens its financial system and corporate governance framework, the Accounting and Corporate Regulatory Authority (ACRA) has announced new regulations for 2025 that will significantly impact Corporate Service Providers (CSPs), Nominee Directors, and Registered Address Providers.
At Bizsquare, we see these changes not as restrictions, but as essential steps toward building a safer and more accountable business environment for clients, service providers, and the nation.
1. CSP Registration is Now Mandatory for Registered Address Services
Even if you only offer registered address services, you must now register as a Corporate Service Provider (CSP) and appoint a Registered Qualified Individual (RQI) to continue operating legally.
2. Nominee Directors Must Be Appointed Through a Registered CSP
It is now illegal to act as a nominee director unless you are appointed via a registered CSP. ACRA is placing accountability at the forefront and rightfully so.
3. Stronger Penalties for Non-Compliance
Failure to comply with these requirements could result in:
⚠️ Fines up to S$50,000
⚠️ Up to 2 years’ imprisonment
⚠️ Daily fines of S$2,500 for ongoing violations
Nominee directors who act as passive “name-lenders” now face mandatory jail terms if they fail to exercise oversight. A recent High Court ruling sentenced a director to 10 months in prison after failing to supervise hundreds of companies that later facilitated scams.
4. Stricter AML/CFT Regulations
CSPs must now strengthen:
🛡️ Customer Due Diligence (CDD)
🛡️ Risk assessments
🛡️ Internal controls
Non-compliance with Anti-Money Laundering / Counter-Terrorism Financing (AML/CFT) obligations may lead to fines of up to S$100,000 per breach.
Why These Changes Matter
The trust placed in Singapore’s corporate ecosystem is built on transparency and integrity. These rules protect genuine entrepreneurs from being unknowingly linked to illegal operations, and they ensure that Corporate Secretaries and Directors play an active, not symbolic, role in governance.
For us at Bizsquare, these changes align with the high standards we’ve always upheld:
✅ We ensure our Nominee Directors are actively involved and properly indemnified
✅ We conduct comprehensive KYC and client risk assessments
✅ We educate clients about their duties, not just their business registrations
What Should CSPs and Nominee Directors Do?
✅ Register with ACRA if you provide corporate services
✅ Appoint a Registered Qualified Individual (RQI)
✅ Avoid passive directorships — be involved
✅ Do not collect payments before KYC is complete
✅ Protect your Singpass and do not share it under any circumstances
✅ Seek indemnity and liability protection
Final Thoughts
Singapore is sending a clear message: compliance is non-negotiable. If you are an SME looking to scale your business, you need to have a good corporate service provider that follows the rules, complies with government regulations, and can advise you on what is required to remain compliant. If you’re seeking a professional and reliable business partner to work with, Bizsquare will be your top choice.
At Bizsquare, we’re committed to helping businesses stay compliant, ethical, and successful. If you need guidance navigating the new rules, our team is ready to support you including providing reliable Accounting Services to keep your financials in order.
Let’s work together to keep Singapore’s business ecosystem strong, clean, and trusted.
