If you are setting up a company in Singapore, you may wonder why your corporate service provider (CSP) is asking for so many documents before the engagement even begins. This process is called Customer Due Diligence, or CDD. It is not only a legal requirement in Singapore but also a critical step in protecting your business and ensuring long-term compliance.
What is Customer Due Diligence?
Customer Due Diligence is the process of verifying a client’s identity, understanding the nature of their business, and assessing any potential risks involved in the business relationship. It is a key component of Singapore’s framework to combat money laundering, terrorism financing, and other financial crimes.
All registered CSPs in Singapore are required to carry out CDD before offering services such as company incorporation, nominee directorships, or use of registered addresses. This ensures that Singapore remains a trusted jurisdiction for legitimate business activity.
Regulatory Changes in 2025: What Clients Should Know
Since 9 June 2025, Singapore’s Corporate Service Providers Act 2024 has officially come into effect. This new law introduces stricter requirements for all CSPs operating in Singapore. Under the Act, only ACRA-registered CSPs can provide corporate services, and all providers must follow enhanced due diligence procedures.
Key changes include mandatory screening of all clients against international sanctions and politically exposed persons (PEP) lists, proper assessment of nominee directors and shareholders, and the requirement to maintain detailed records for at least five years. CSPs that fail to comply with these obligations may face penalties of up to S$100,000 per breach.
What Documents Will You Need?
If you are an individual client, we will request the following:
- Passport /NRIC/Work passes
- Proof of residential address (such as a utility bill or bank statement)
- Source of funds or wealth if applicable
If your company is the applicant or shareholder, we will require:
- Certificate of incorporation
- Business profile or registry information
- Register of directors and shareholders
- Documents identifying the ultimate beneficial owners
Additional information may be needed if the business structure is complex or involves jurisdictions classified as high risk.
Our CDD Process
Our due diligence process starts with a risk assessment based on the type of services you require, the structure of your business, and the jurisdictions involved. We will collect and verify all relevant documents using trusted sources. In cases where the risk profile is higher, enhanced due diligence may be applied. Once all verifications are completed and reviewed, we proceed with company incorporation or other agreed services. In accordance with compliance guidelines, we are also required to conduct a face-to-face meeting, either in person or via a secure video call, to verify the identity of the individual client or representative.
We also conduct periodic reviews throughout the client relationship to ensure compliance with changing regulations. If there are significant changes to your company structure or ownership, we may request updated documentation.
Why This Benefits You
While the process may feel administrative at first, strong due diligence protects you as a business owner. It helps ensure that your company is compliant from day one, avoids unnecessary regulatory delays, and strengthens your credibility with banks, investors, and business partners. A properly documented and structured company will also be better positioned for growth, funding, and cross-border expansion.
Choose a CSP That Puts Compliance First
Our firm is fully aligned with the upcoming requirements under the CSP Act. We are ACRA-registered, follow robust internal controls, and support clients through every step of the incorporation and compliance process.
New Ark Consulting provides a one-stop customized service, including company registration, accounting and taxation, overseas relocation, and comprehensive consulting services. Feel free to contact our professional team anytime via WhatsApp at +65 8830 8077 for more information.
Disclaimer
This article is written by New Ark Consulting and is for reference only. It may contain information that is proprietary to the Company and may not be published, distributed, reproduced, or redistributed, in whole or in part, without the prior consent of the Company. The article itself is not an offer or invitation to set up a family office, trade any investment product, establish a trust or establish a specific corporate structure or establish any legal relationship. Nor does it in itself constitute advice or a recommendation regarding wealth planning structures or corporate advice. It is for general information only and does not take into account specific investment objectives, investment experience, financial situation and the specific needs of any particular person. You should approach any potential investment or proposed wealth structure with caution. You should independently evaluate and consider the suitability of such products or structures, taking into account your specific objectives, investment experience, financial situation and/or specific needs (including your own wealth management needs and circumstances). Please obtain independent financial, legal and/or tax advice from professional advisors as required before proceeding with any investment, purchasing any investment product or building your wealth. Investments in financial instruments or other products carry significant risks, including the possibility of loss of the principal invested. Past performance does not guarantee or represent future results. Neither New Ark Consulting nor any of its officers shall be liable for any damages (whether direct, indirect or consequential) arising out of or in connection with the use of this article.
While reasonable efforts have been made to ensure that the content of this article has been obtained or derived from sources believed by the Company to be reliable, New Ark Consulting has not independently verified the accuracy of such sources. New Ark Consulting's products, services or product packages may be subject to relevant laws and regulations and may be changed from time to time without prior notice. Neither New Ark Consulting nor its associates, employees, agents and representatives make any representations, warranties or guarantees, express or implied, as to the accuracy, timeliness or completeness of the information, data or current conditions referred to in this article. No liability is accepted for any direct or indirect loss or damage arising out of or in connection with the use of the content of this document. New Ark Consulting and its affiliates may publish other reports, analyses or other documents that may express opinions that differ from those contained herein, and all opinions expressed in all reports, analyses and documents are subject to change without notice.