Yes, a business in Singapore can change its name even after registration by having the approval of shareholders through a special resolution. It also submits the application for a name change to the ACRA via the BizFile+ portal.

Businesses in Singapore normally change their names when they start to expand as a new market entrant, offering new services, experiencing a change in ownership, or undergoing a rebranding practice. The process of changing the company is very simple: companies need to confirm that the proposed name complies with ACRA naming guidelines before it starts.

Which Approval is needed to change the name of a company in Singapore?

The change of a company name mostly needs the approval through a special resolution by the shareholders. Special resolution needs at least 75% of the shareholders’ votes for approval under the Singapore Company Law.

This basic requirement has existed since a company name has formed a portion of the legal label. There are a few important corporate changes, such as changes in name, requires a higher confidence of shareholders as compared to routine decisions. It is important to have alignment to avoid any delays in the procedures, specifically for the SMEs with several shareholders.

How Does the Process of ACRA Change of Company Name Work?

Five steps tell the process of the ACRA change of company name:

• Selecting a new name helps in the identification of a suitable name that aligns with branding objectives and business strategies.

• It is important to check the availability of the name, which must not conflict with current business names.

• A special resolution holding 75% of the votes by shareholders is passed to approve the new company name.

• In the latter process, the application is submitted to the ACRA through the BizFile+ portal with the required company information.

• After the approval of the new company name, the data should be updated in the records of agreements, bills, bank reconciliation, company documents, and websites.

• Several businesses tend to focus on having approval from the shareholders and ignore the updated requirements in the post-approval period.

Why Do Companies Need to Change Their Names?

• Several businesses tend to focus on having approval from the shareholders and ignore the updated requirements in the post-approval period. Many businesses not only change their names because of attention and cosmetics, but also due to strategic business decisions and goals. The reasons include:
  • Brand repositioning
  • Expansion into new sectors
  • Attracting global clientele
  • Customizing the outdated label of the company
• For instance, a business is originally developed as a local trading company expands into a regional services and/or consultation technology business. The original name of the company may no longer be needed to represent the company in such cases.

What Happens After Approval of the new company name?

The new company name becomes legally valid after approval of the company name by the ACRA. But the business does not change itself.

The registration and tax number of the company remains the same, and agreements tend to continue without any interruption. After this, companies need to focus on updating the official records, such as:

• Website

• Marketing content

• Bank accounts and reconciliation

• Client’s data

• Taxation records

• Agreements

• This stage takes a lot of time after the approval of the change in the company name.

Example: Change of Company Name to Make Business Sense

Let us consider a company that was originally registered as a consulting services company, but in the future, it expanded its business into products and supply chain services. The shareholders found out that clients only presume our company to be a consulting service company, but we are selling our products and offering supply chain consultation as well. As a result, the company changed its name to reflect its expanded business.

Later on, the company updated its customer-facing content and marketing material after having the approvals from shareholders passed by a special resolution to help the market perception and maintain continuity of the business.

Conclusion

In the end, it can be concluded that the change of a company name is not an administrative job, but it is also a part of wider business growth, repositioning of the market, and rebranding.

Companies in Singapore ought to ensure they have approval by shareholders, select a commercially reliable name, and complete the post-approval procedures after submitting the application to ACRA. A change in the company name can empower the identity and strengthen the future growth when it is handled correctly.

Want to Inquire?

If you are planning to change the company name with ACRA, we, at FAST ACCOUNTING, are here to help you with our experienced and professional corporate secretarial services that can help you manage the whole procedure, from the resolution of shareholders to record and filing updates. Working with us can assist ensure your business remains regulatory compliant while making the changes smooth.