It was the first initiative announced by ACRA in April 2010. It is the introduction of the colour-coded compliance rating and issuance of the Certificate of Compliance.
How to get the Certificate of Compliance?
First get the GREEN tick. Green tick will be given only when a company complies with ALL of the following requirements as enunciated in the Companies Act, Cap.50 ie.
1. Hold its AGM once in every calendar year and not more than 15 months
after the last preceding AGM (section 175). For a new company, the period is 18 months after date of incorporation.
2. Provide the members/shareholders with the financial statements that is not more than 6 months old at the date of the meeting. For a public listed company the financial statements must not be more than 4 months old at the date of the meeting.
3. File its AR within 1 month from the date of the AGM (section 197).
Once your company gets the GREEN tick, you pay $5 for a copy of Certificate of Compliance. Failing to comply, you will get the RED cross. All the GREEN ticks and RED crosses will be displayed next to your business entities’ name for all to see in the free Directory of Business Entities.
What can I do with the Certificate of Compliance?
1. Show to banker to demonstrate that your company is behaving and ask for a discount on the interest costs.
2. Attached it to your resume as you present yourself to the next prospective employer as the key person in keeping the company neat and tidy.
3. Attached it to your performance appraisal as you discuss for a bonus.
4. Show to auditor. Try asking discount on ground that ACRA is certifying compliance already. No audit work is necessary there.
5. The auditors too can use the CoC to check on their prospects first before accepting appointment.
Good morning to you. Cheers