By Esther Hoo, Head of Corporate Secretarial Services
Singapore has introduced new measures to enhance corporate governance standards. With the Corporate Service Providers Act 2024 (CSP Act) and the accompanying Corporate Service Providers Regulations 2025 (CSP Regulations) now in force as of 9 June 2025, businesses operating in or through Singapore are expected to align with a framework that emphasises transparency, accountability, and sound governance practices.
So, what’s changed – and what does it mean for your business?
What’s new under the CSP Act?
1. Mandatory registration requirements for corporate service providers
Under the CSP Act, a corporate service provider (CSP) is defined as an entity that carries out a business of providing corporate services.
Registration as a CSP is required if you offer services such as a registered office, business address, correspondence address, administrative address or similar services to companies, partnerships or other legal entities. This includes:
- Providing a registered office address that meets statutory requirements
- Offering a business address from which a client operates without occupying a fixed physical space
- Supplying a correspondence address used for written communication where the client is not physically present.
2. Nominee directors must be fit and proper
Nominee directors acting in the course of business must have their appointments arranged through registered CSPs. This requirement does not apply to employees appointed as directors of their own company or a related entity.
Registered CSPs are prohibited from arranging for a person to act as a nominee director unless they are satisfied that the individual is fit and proper. In making this assessment, CSPs should consider factors such as:
- Whether the person has been convicted (whether in Singapore or elsewhere) of any offence involving fraud or dishonesty, or of any relevant offence
- Whether the person is an undischarged bankrupt in Singapore or elsewhere
- Whether the person’s previous conduct and the compliance history of the companies of which the person was a director have been satisfactory, including whether the person has been disqualified from acting as a director
- Whether the person has the competency, capacity and capability to properly fulfil the obligations of a nominee director, taking into account the person’s experience and existing commitments, including the number of existing directorships.
3. Greater transparency through public disclosure
To strengthen transparency and combat financial crime, the CSP Act introduces updates concerning disclosure and registration obligations:
Register of Registrable Controllers (RORC)
- Previous rule: Companies and limited liability partnerships (LLPs) must maintain a RORC within 30 days of being incorporated or registered
- New rule: The RORC must be maintained from the date of the company’s incorporation or LLP’s registration
Register of Nominee Directors and Shareholders
Companies are now required to:
- Maintain registers of nominee directors and shareholders
- Submit this information to the Accounting and Corporate Regulatory Authority (ACRA), which will keep official records
Upon disclosure to ACRA, the nominee status of the director and shareholder will be made publicly available. This measure enhances transparency around nominee arrangements, helping to mitigate money laundering risks by prompting additional scrutiny and customer due diligence from AML-obligated entities when nominee directors or shareholders are involved. It also supports Singapore’s ongoing alignment with the Financial Action Task Force (FATF) standards on beneficial ownership, updated in March 2022, which requires nominee directors and shareholders to disclose their nominators to ACRA and publicly declare their nominee status.
What this means for businesses
The CSP Act represents a strategic shift in how businesses operate and build trust in Singapore’s corporate landscape. By aligning with these changes, companies can:
- Strengthen credibility with clients, investors and regulators
- Reduce risk exposure from non-compliant partners or structures
- Stay competitive in a global environment that increasingly values transparency
As Singapore sharpens its focus on corporate transparency and accountability, the CSP Act underscores the importance of integrity and compliance. Businesses should act promptly to ensure alignment and avoid penalties.
How we can help
With over two decades of experience advising multinational clients across diverse industries, our corporate administration team brings deep expertise and strategic insight to every engagement.
Whether you need support with company formation, nominee arrangements or corporate secretarial services in Singapore, we offer a client-focused approach grounded in experience, personalised service and strategic insight.
At IQ-EQ, we help strengthen governance frameworks and deliver tailored support aligned with your goals. Contact us to explore how we can help future-proof your business.
