BUSINESS REGISTRATION BILL

Order for Second Reading read.

3.53 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The existing Business Names Act was enacted more than 30 years ago, in 1940, and is limited in objectives and coverage, imposing only the minimum of formalities, fees and sanctions, and requiring few returns to be submitted to the Registrar of Businesses. To keep pace with Singapore's development as a major commercial and financial centre, it is necessary that up-to-date and accurate information on business firms, which are rapidly increasing in number, be readily available. It is also necessary to revise, up-date and strengthen the law to prevent the perpetration of fraud. The Bill, therefore, seeks to repeal the Business Names Act and to replace it with the Business Registration Bill.

The provisions of the Bill differ from those of the existing Act in several major aspects. Persons now exempt from registration under the existing law, notably those carrying on business under their own names and those carrying on business in premises, the annual value of which is less than $360, will have to be registered under the new Act. Registration will no longer be a onetime affair; instead clause 9 of the Bill proposes to make it mandatory for registration to be renewed annually. The Bill will also confer upon the Registrar of Businesses the power to refuse to register or to cancel the registration of a person:

(i) where such particulars or information as may be requested by the Registrar are not supplied to him by the applicant (clause 9);

(ii) where the name of the business is identical to or closely resembles that of an existing business, or if the name is undesirable (clause 11);

(iii) where a person registered under the Act has ceased to carry on business (clause 13); or

(iv) where the business carried on is unlawful (clause 30).

Another major change appears in clause 19 which enables the Registrar to appoint inspectors for the purpose of ascertaining whether provisions of the Bill are being complied with. The Registrar and appointed inspectors are given powers at all reasonable times to enter premises believed to be used in the carrying on of an unregistered business. A penal provision to be applied to those who resist or obstruct the Registrar or inspectors in the performance of their duties is also contained in the clause. Clause 22 prohibits an undischarged bankrupt, without leave from the High Court and without notifying the Official Assignee, from direct or indirect participation in the management of a business.

The other provisions in the Bill which differ from those of the existing Act are less fundamental. Generally, tougher penalties have been fixed for non-compliance with the requirements of the Act, while notice periods for the submission of information, applications and returns to the Registrar have been shortened. Thus, clause 5 requires that persons be registered before commencement of business. In the case of those already in business prior to the date of commencement of this proposed Act, application for registration must be made within 30 days of an appointed date. The penalty for non-compliance will be a $1,000-fine and/or six months' imprisonment. The carrying on of a business under an unregistered business name is prohibited under clause 10, and any person convicted under this clause will be liable to a $5,000-fine. Clause 12 deals with changes, making it mandatory for changes in particulars of a business to be recorded with the Registrar within 14 days. In clause 13 a person who has ceased to carry on business is required to notify the Registrar within one month (instead of three months) of cessation. The provisions in the clause empower the Registrar to cancel the registration of businesses that have ceased.

The Register of particulars kept by the Registrar will no longer be open to the public for inspection. Instead copies of Certificates of Registration and other particulars can be obtained from the Registrar at a prescribed fee.

Clause 23 lists the following as offences punishable by a $1,000-fine and/or six months' imprisonment:

(i) The carrying on of a business without a Certificate of Registration or after expiry or cancellation of a Certificate of Registration;

(ii) Failure to submit changes of particulars to the Registrar;

(iii) Failure to comply with any summonses or requisitions of the Registrar;

(iv) The making of statements which are false in any material particular or by reason of the omission of any material particular;

(v) Failure to exhibit the Certificate of Registration or a valid copy of the Certificate in a conspicuous position in the principal place of business; and

(vi) Failure to comply with any regulation made.

Under the Bill, the Registrar will be given powers to compound offences by collecting a sum not exceeding $500 from the offender. It also provides that the Registrar and public officers may not be sued in respect of any errors or inaccuracies in the Register maintained. It is envisaged that these new provisions will bring about better administration of businesses, and see a more orderly development in this sector. With better control, the early detection of fraud would also be facilitated.

Sir, I beg to move.

Question proposed.

4.00 p.m.

Mr Teong Eng Siong (Sembawang): (In Mandarin): Mr Speaker, Sir, although Singapore is a country without any rich natural resources, it is highly developed in commerce, industry and trade. Its population of more than two million depends entirely on its activities in commerce, trade and industry for its survival. Therefore, the laws relating to commerce, industry and trade should ensure that all activities concerning such matters are efficiently carried out. More important, they should seek to promote further development of such activities in order that the whole country and all its people can benefit even more.

Mr Speaker, Sir, the introduction of this amendment Bill is a step in the right direction. It is a progressive piece of legislation, and ensures the proper control of business. This being the case, Sir, it is my hope that in implementing the provisions in this Bill, there should be simplification in the procedure as far as possible. For example, there is a provision in the Bill that business registration has to be renewed annually. In this respect, Sir, the procedure for renewal should be simplified as far as possible. It should be as simple as the renewal of television and radio licences. This is to ensure that minimum inconvenience is caused in respect of applications for renewal.

There is another point to which I wish to draw the attention of the Minister. In the implementation of this Bill, what will be the position of non-residents and non-citizens?

Mr Speaker, Sir, I support the Bill.

Mr Hon Sui Sen: Mr Speaker, Sir, I do not think there is anything specific for me to answer the Member for Sembawang. He has asked about the position of non-residents and non-citizens. As far as the law is concerned, they are required to comply with the Act just like any other citizens or residents. As for simplification of the procedure for the renewal of registration, I hope that it will be as simple as can possibly be devised by my Ministry.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. -[Mr Hon Sui Sen].

Bill considered in Committee; reported without amendment; read a Third time and passed.