ACRA’s Corporate Service Providers Act: What Clients Should Check Before Engaging a CSP

Last Updated: June 2026

The Corporate Service Providers Act 2024 is the law that regulates the firms Singapore companies rely on for incorporation, corporate secretarial, accounting, and tax agent work. It came into force on 9 June 2025 and requires any person who provides these services by way of business to register with ACRA as a Corporate Service Provider, or CSP. A registered CSP must run anti-money-laundering checks, verify who its clients really are, keep proper records, and be assessed as fit and proper.

This matters because the firm you appoint now sits inside a formal compliance regime. Engaging an unregistered provider, or one that cuts corners on customer due diligence, exposes your company to delays, rejected filings, and reputational risk. This guide explains what the CSP Act is, when it took effect, what a registered CSP must do, how the new rules tighten the use of nominee directors, and the simple checks you should run before you sign with any provider.

Key Takeaways

• The Corporate Service Providers Act 2024 regulates anyone who provides corporate services in Singapore by way of business, and it came into force on 9 June 2025.
• Any person carrying on a business of incorporation, corporate secretarial, accounting, or tax agent work must register with ACRA as a Corporate Service Provider.
• A registered CSP must perform customer due diligence (KYC), comply with anti-money-laundering and countering-the-financing-of-terrorism duties, keep records, report suspicious transactions, and meet a fit-and-proper standard.
• A person who acts as a nominee director by way of business must now be arranged through a registered CSP and must be assessed as fit and proper.
• Before engaging a provider, confirm its CSP registration status with ACRA and check that it runs proper KYC on you and your company.
• Operating as a CSP without registration is an offence with a fine of up to S$50,000 per offence, separate from the higher penalties that apply to AML breaches by a registered CSP.

What Is the Corporate Service Providers Act 2024?

The Corporate Service Providers Act 2024 is a dedicated law that brings firms offering corporate services in Singapore under direct ACRA supervision. Before this Act, registered filing agents and corporate service providers were governed under a patchwork of rules. The new Act consolidates and strengthens that oversight, treating CSPs as gatekeepers who help keep money laundering and terrorism financing out of Singapore companies.

The Act applies to any person who carries on a business of providing corporate services. In practice that covers company incorporation, ongoing corporate secretarial services, acting as a registered filing agent, accounting, and tax agent work performed by way of business. If a firm does this work for clients for a fee, the Act expects it to register with ACRA and meet the obligations that come with registration.

For company owners, the practical message is that your provider is now an accountable, registered entity rather than an informal helper. The Act sits alongside the Companies Act 1967, which still governs your company’s own duties, while the CSP Act governs the firm you appoint to help you meet them.

When Did the CSP Act Take Effect?

The Corporate Service Providers Act 2024 came into force on 9 June 2025. From that date, the registration requirement and the compliance duties became live, and ACRA began supervising CSPs under the new framework. Firms that were already operating as registered filing agents were expected to transition into the new regime rather than continue under the old arrangements.

If you appointed a provider before 9 June 2025, this is a good moment to confirm that your firm has registered as a CSP under the new Act. A reputable provider will have completed registration and will be happy to confirm it. If you are still registering a company in Singapore or planning to, the easiest path is to start with a provider that is already registered.

What Must a Registered CSP Do?

Registration is the entry point, but the substance of the CSP Act is in the ongoing duties. A registered Corporate Service Provider must do the following.

• Register with ACRA. The firm must hold a valid CSP registration before it can provide corporate services by way of business.
• Perform customer due diligence (KYC). The CSP must verify the identity of its clients and the beneficial owners behind them, and understand the purpose of the business relationship.
• Comply with AML and CFT duties. The CSP must meet anti-money-laundering and countering-the-financing-of-terrorism obligations, including risk assessment and ongoing monitoring of client activity.
• Keep records. The CSP must retain customer due diligence records and transaction records for the period required by law.
• Report suspicious transactions. Where the CSP suspects money laundering or terrorism financing, it must file a suspicious transaction report with the authorities.
• Meet the fit-and-proper standard. The CSP and its officers must be assessed as fit and proper, which looks at honesty, integrity, and competence.

For clients, these duties explain why a good provider asks for your passport, proof of address, and details of the people who own and control your company. That is not red tape for its own sake; it is the KYC the CSP Act requires. The same discipline flows into your company’s monthly compliance routine and your wider accounting compliance obligations, which a registered CSP is well placed to support.

How Does the CSP Act Affect Nominee Directors?

The CSP Act tightens one area that had drawn concern: the use of nominee directors. A nominee director is a person who is appointed to a company’s board but acts on the instructions of someone else. The Act makes clear that a person who acts as a nominee director by way of business must be arranged through a registered CSP, and that nominee director must be assessed as fit and proper.

This closes the gap where anyone could be installed as a nominee for a fee with little scrutiny. The change works together with ACRA’s registers of nominee directors and shareholders, which require companies to record who their nominees are and on whose behalf they act. If you are a foreign founder, our guide on nominee director services for foreign entrepreneurs explains how this fits a typical setup.

The practical effect is that you should not accept a nominee director arranged outside the registered-CSP framework. The 2025 tightening is covered in our piece on the nominee director crackdown and how to stay safe, and there is real risk in informal arrangements, as our article on the risk of using a friend as a nominee director sets out. Companies also need to meet the related deadline explained in our guide to the new ACRA central registers for nominee directors and shareholders.

What Should Clients Check Before Engaging a CSP?

The checks are simple, and a trustworthy provider will welcome them. The chart below sets out what the CSP Act requires of a provider on one side, and what you as a client should check on the other.

Run through these before you sign an engagement letter.

• Confirm CSP registration status. Ask whether the firm is registered with ACRA as a Corporate Service Provider under the new Act, and get that confirmation in writing.
• Expect proper KYC. A registered CSP must verify your identity and your beneficial owners. A provider that asks for nothing is a warning sign, not a convenience.
• Check the people behind the firm. The fit-and-proper standard applies to the CSP and its officers, so a credible firm will have qualified, accountable people.
• Clarify the scope. Confirm exactly which services the firm will provide, whether incorporation, secretarial, accounting, tax, or a nominee director, so nothing falls between the cracks.
• Match the firm to your needs. If you are opening a business in Singapore as a foreigner, pick a provider experienced with cross-border ownership and nominee arrangements.

These checks protect you on both sides. They confirm the provider is operating lawfully, and they confirm the provider takes its own obligations seriously, which is the best predictor that your filings will be handled correctly. Knowing the key responsibilities of a director helps you judge whether a provider’s advice is sound, and our guide on whether a sole director can be the company secretary shows the kind of detail a registered CSP should get right.

What Are the Penalties for an Unregistered CSP?

Operating as a Corporate Service Provider without registration is an offence under the Act. A person who carries on a business of providing corporate services without being registered can face a fine of up to S$50,000 per offence. This is the penalty that targets unregistered operation specifically.

It is important not to confuse this with the separate, higher penalties that apply when a registered CSP breaches its anti-money-laundering and countering-the-financing-of-terrorism duties. Those AML and CFT breaches can attract penalties of up to S$100,000. In short, the up-to-S$50,000 fine is for operating without registration, while the up-to-S$100,000 penalty is for AML failures by a firm that is already registered.

For you as a client, the takeaway is straightforward. If a provider is not registered, it should not be doing this work at all, and you should not be relying on it. Choosing a registered CSP from the outset removes that risk entirely. ACRA’s guidance on appointing directors and other key officers sets the context for how registered filing agents and CSPs support your company’s compliance.

Frequently Asked Questions

What is the Corporate Service Providers Act 2024?

The Corporate Service Providers Act 2024 is a Singapore law that regulates firms providing corporate services by way of business, such as company incorporation, corporate secretarial work, accounting, and tax agent services. It requires these firms to register with ACRA as Corporate Service Providers and to meet anti-money-laundering, customer due diligence, record-keeping, and fit-and-proper requirements. It treats CSPs as gatekeepers that help keep illicit money out of Singapore companies.

When did the CSP Act come into force?

The Corporate Service Providers Act 2024 came into force on 9 June 2025. From that date the registration requirement and the ongoing compliance duties became live, and ACRA began supervising Corporate Service Providers under the new framework. Firms that previously operated as registered filing agents were expected to transition into the new regime.

What must a registered corporate service provider do?

A registered CSP must hold valid ACRA registration, perform customer due diligence to verify clients and their beneficial owners, comply with anti-money-laundering and countering-the-financing-of-terrorism duties, keep customer and transaction records, report suspicious transactions, and meet a fit-and-proper standard covering honesty, integrity, and competence. These duties are why a reputable provider asks for identity documents and details of who owns and controls your company.

How does the CSP Act affect nominee directors?

Under the CSP Act, a person who acts as a nominee director by way of business must be arranged through a registered Corporate Service Provider, and that nominee director must be assessed as fit and proper. This closes the gap where anyone could be installed as a nominee for a fee with little scrutiny. It works alongside ACRA’s registers of nominee directors and shareholders, which record who nominees are and on whose behalf they act.

What should I check before engaging a CSP?

Confirm that the firm is registered with ACRA as a Corporate Service Provider under the new Act and get that in writing. Expect the provider to run proper KYC by verifying your identity and beneficial owners; a provider that asks for nothing is a warning sign. Check that the people behind the firm are qualified and accountable, clarify the exact scope of services, and choose a firm experienced with your situation, especially for cross-border ownership or nominee arrangements.

What is the penalty for operating as an unregistered CSP?

Carrying on a business of providing corporate services without being registered is an offence with a fine of up to S$50,000 per offence. This is separate from the higher penalties that apply when a registered CSP breaches its anti-money-laundering and countering-the-financing-of-terrorism duties, which can reach up to S$100,000. The up-to-S$50,000 fine targets unregistered operation, while the up-to-S$100,000 penalty targets AML failures by a registered firm.

Talk to Us About Choosing a Registered CSP

The Corporate Service Providers Act 2024 raised the bar for everyone who handles incorporation, secretarial, accounting, and nominee work in Singapore, and the safest choice is a provider that is registered, runs proper KYC, and meets the fit-and-proper standard. If you want a registered Corporate Service Provider to handle your incorporation, corporate secretarial filings, and compliance correctly from day one, talk to us and we will make sure your company is set up and supported the right way.