Registration requirements for public accounting corporations (PAC)
Check the seven key requirements to set up a PAC in Singapore.
Last updated 29 January 2026
Note: Your PAC must have public accountancy services as its main function. This includes auditing and reporting on financial statements.
1. Naming requirements
Your PAC name must end with either:
"Public Accounting Corporation"; or
"PAC".
Avoid names which are:
Identical to an existing business or reserved name.
Undesirable, such as those containing vulgar, obscene, or offensive terms.
Similar to government bodies or names protected by legislation, such as Temasek.
More details: Choosing a business name, Practice Direction No. 7 of 2006 [PDF, 79 KB]
2. Director requirements
Only PAC members (shareholders) can become directors.
Additional director requirements
Number of directors | Requirement |
One director | This director needs to:
|
Two directors | At least one director needs to:
|
More than two directors | At least two-thirds of the directors need to:
|
3. Management requirements
Your PAC needs to appoint at least one PA who lives in Singapore as a "Director under section 17(3)(d) of the Accountants Act".
This director will control and manage your PAC's public accountancy services. They should ensure invoices and official letters state that your PAC is "incorporated with limited liability".
Filling director vacancies
If the office of "Director under section 17(3)(d) of the Accountants Act" becomes vacant, you need to fill it as soon as possible, but no later than one month.
Appoint another PA who lives in Singapore to fill the vacancy.
If a PA's registration is cancelled or suspended
PAs cannot take part in PAC management or practice without permission from the Public Accountants Oversight Committee (PAOC).
This applies if their PA registration was cancelled or suspended as a result of:
Disciplinary proceedings.
4. Shareholding requirements
You need to meet all of these shareholding requirements.
PAC shareholding criteria
Requirement | Details |
Paid-up share capital | At least $50,000 |
Shareholder type | Must be owned by individuals (not corporate shareholders) |
Share ownership by corporate practitioners | At least two-thirds of voting shares need to be owned by corporate practitioners. Corporate practitioners include directors or employees who are PAs practising in the PAC. |
Special situations for share ownership
Corporate practitioner's PA registration was cancelled or suspended
Unless allowed by the PAOC:
PAs cannot hold shares if their registration was cancelled due to the PMP or disciplinary proceedings.
PAs cannot vote on their PAC shares if their registration was suspended.
Grace periods for holding shares (due to PA death, bankruptcy or incapacitation)
The PAOC may grant a PA's representative grace periods to hold shares if the PA ceased their role as a PA, director, or employee due to:
Death;
Bankruptcy; or
Incapacity.
Who can apply for a grace period
These parties may apply to the PAOC for a grace period of up to two years to hold the person's voting shares:
The administrator or executor of the person's estate
The trustee in bankruptcy
The committee of the estate
When the grace period starts
The grace period starts from:
The date the administrator or executor is appointed by the court (in case of death)
The date the person is declared bankrupt (in case of bankruptcy)
The date the person becomes unable to act (in case of incapacity)
Rules during the grace period
During the grace period, the administrator, executor, trustee, or committee:
Will be treated as a corporate practitioner when calculating the required proportion of voting shares owned by corporate practitioners
Cannot exercise any voting rights attached to the shares
Cannot take part in or be involved in the management or practice of the PAC
Grace periods for holding shares (due to other reasons)
The PAOC may grant the PAC a grace period to transfer the voting shares if a PA ceases their role as:
PA;
Director; or
Employee.
This applies when the person stopped their role for reasons other than death, bankruptcy, or incapacity.
Who can apply for a grace period
The PAC may apply to the PAOC for a grace period of up to two years.
Rules during the grace period
During the grace period, the individual:
Will be treated as a corporate practitioner when calculating the required proportion of voting shares owned by corporate practitioners
Cannot exercise any voting rights attached to the shares
Cannot take part in or be involved in the management or practice of the PAC
Note: You cannot use nominee shareholders or create security over shares. These arrangements are not legally valid.
5. Professional indemnity insurance requirement
Your PAC needs to be covered by professional indemnity insurance.
The amount to be covered is the highest of these three:
$1 million
$500,000 per corporate practitioner in your PAC
Two and a half times your PAC's gross income from the last financial year (maximum $50 million)
Tip: You can submit quotations from your insurer when you incorporate the PAC. After incorporation, you need to maintain the required coverage at all times.
6. Articles of association requirements
Your PAC's articles of association should provide that:
Not less than two-thirds, or such other proportion as may be prescribed, of the directors (including the chairman) shall be PAs.
If the PAC has only one director, that director shall be a public accountant; or
If the PAC has only two directors, that one of those directors shall be a public accountant.
Not less than two-thirds, or such other proportion as may be prescribed, of the voting shares of the PAC shall be owned by corporate practitioners.
Only natural persons may own any shares of the PAC.
7. Constitution requirements
Your PAC's constitution should provide:
A statement in relation to the transfer and disposal of shares in the following terms: “No person shall transfer or dispose of any shares in an accounting corporation without the prior approval of the directors. The directors shall not grant their approval if such transfer will result in a contravention of any requirement in section 27 of the Accountants Act (Cap. 2) or any rules made thereunder on the holding, transfer or disposal of shares in an accounting corporation.”
The manner and terms of the transfer or disposal of any shares in a PAC in the event that the person holding such shares:
Is suspended from practice as a public accountant, or is removed from the Register of Public Accountants pursuant to any disciplinary proceeding; or
Ceases to be a corporate practitioner by reason of death or bankruptcy or incapacity due to mental or physical disability.