In forceAmended2020 Revised Edition

Contents

Accountants Act 2004 · 2020 Revised Edition · Part 4 · Accounting Corporations, Accounting Firms and Accounting Llps

17. Approval of accounting corporations

Amended

Last amended by an amending law of 2025. 2 amendments in all.

(1)

A public accountant who wishes to have a company or proposed company approved as an accounting corporation may apply to the Oversight Committee for approval of —

(a)

the company as an accounting corporation; and

(b)

the name or proposed name of the accounting corporation.

(2)

An application under subsection (1) must be made in accordance with the prescribed requirements and must be accompanied by the prescribed fee.

(3)

Subject to subsection (4) and any other provisions of this Act, the Oversight Committee may, on receiving an application made under this section, approve the company or proposed company concerned as an accounting corporation if and only if —

(a)

one of the primary objects of the company or proposed company is to provide public accountancy services;

(b)

the share capital of the company or proposed company that is paid up or to be paid up is at least $50,000 or any other sum that may be prescribed;

(c)

the constitution of the company or proposed company provide that —

(i)

at least two-thirds, or any other proportion that may be prescribed, of the directors (including the chairperson) must be public accountants, or —

(A)

if the company or proposed company has only one director, that that director must be a public accountant; or

(B)

if the company or proposed company has only 2 directors, that one of those directors must be a public accountant;

(ii)

at least two‑thirds, or any other proportion that may be prescribed, of the voting shares of the company or proposed company must be owned by corporate practitioners; and

(iii)

only individuals may own any shares of the company or proposed company;

(d)

the business of the company or proposed company, so far as it relates to the provision of public accountancy services in Singapore, will be under the control and management of one or more directors of the company who are public accountants ordinarily resident in Singapore; and

(e)

the company or proposed company is or will be covered by professional indemnity insurance in accordance with section 28 and the prescribed requirements, if any.

(4)

If the Oversight Committee grants its approval for a proposed company to be an accounting corporation, the approval is not to take effect until the company is formed and registered under the Companies Act 1967.

Terms defined in s 2

accounting corporation
Defined · s 2
“accounting corporation” means a company approved as an accounting corporation under section 17;
Open s 2
Chairperson
Defined · s 2
“Chairperson” means the Chairperson of the Oversight Committee;
Open s 2
company
Defined · s 2
“company” has the meaning given by the Companies Act 1967;
Open s 2
constitution
Defined · s 2
“constitution”, in relation to a company, has the meaning given by section 4(1) of the Companies Act 1967;
Open s 2
name
Defined · s 2
“full name” or “name” means —(a)in the case of an individual registered under the National Registration Act 1965 — the name as it appears in the latest identity card issued to that individual under section 9 of that Act; or(b)in the case of an individual not registered under the National Registration Act 1965 — the name as it appears in the latest passport issued to that individual or such other similar evidence of identification as is available;
Open s 2
Oversight Committee
Defined · s 2
“Oversight Committee” means the Public Accountants Oversight Committee appointed by the Authority under section 4;
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professional indemnity insurance
Defined · s 2
“professional indemnity insurance” includes insurance indemnifying a public accountant, an accounting corporation, an accounting firm or an accounting LLP against liability to compensate a third party who has sustained financial loss or any other damage or injury due to a breach of professional duty or to any professional negligence on the part of such public accountant, accounting corporation, accounting firm or accounting LLP, as the case may be (including any such negligence by any director of such accounting corporation or any partner of such accounting LLP), or fraud or dishonesty;
Open s 2
public accountancy services
Defined · s 2
“public accountancy services” means the audit and reporting on financial statements and the doing of any other acts that are required by any written law to be done by a public accountant;
Open s 2
public accountant
Defined · s 2
“public accountant” means an individual who is registered or deemed to be registered in accordance with this Act as a public accountant;
Open s 2

Report

Read on from s 18

Part 5

Practice Monitoring Programme

Read on from Part 5

Part 5A

Review of Compliance with Quality Control Standards and Requirements to Detect and Prevent Money Laundering, Terrorism Financing and Proliferation Financing

Read on from Part 5A

Part 6

Disciplinary Proceedings

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Part 7

Miscellaneous

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Part 8

Saving and Transitional Provisions

Read on from Part 8

Schedules

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