Understanding UEN: Does Your Business Require One?

Understanding UEN: Does Your Business Require One?

Well-known for its business-friendly ecosystem, Singapore also has a well-established and aligned regulatory framework for businesses. Its centralisation approach has integrated almost all the processes across various domains, such as its regulatory framework, digital business and other platforms and databases.

Officially rolled out in 2009 by Accounting and Corporate Regulatory Authority (ACRA), the requirement of having a Unique Entity Number (UEN)  is an example of system integration.

Therefore, businesses operating or planning to incorporate in Singapore must understand UEN and its significance. This article dives into what is UEN, why it is essential, and whether your business needs one.

What is UEN?

The Unique Entity Number, commonly called the UEN, is a 9 or 10 alphanumeric, standard, and unique identification number issued to all entities registered with ACRA, a statutory body under the Ministry of Finance of the government of Singapore. 

It is a system-generated number automatically issued by default to all business entities upon successful registration, incorporation, or conversion to a different type of business entity with ACRA to enable them to be identified with a single no. for all official dealings. You need not pay any fee separately to get the said UEN.

Structure of UEN 

A UEN format depends on the entity type and registration date, described as follows:

1. Businesses registrations before 2009 have a 9-digit UEN following the format nnnnnnnnX.

2. Local companies registered before 2009 have a 10-digit UEN following the format yyyynnnnnX.

3. All registrations after 2009 have a 10-digit UEN in the format TyyPQnnnnX.

Here, ‘n’ = a number

‘P’= a alphabetical letter

‘Q’ = an alpha-numeric digit

‘PQ’ = Entity-type ‘Tyy’ / ‘Syy’ / ‘yyyy’= year of issuance

‘X’ = a check alphabet

UEN formats for specific entities like limited liability partnerships and representative offices include entity codes like LL and RF respectively.

Entities for whom UEN is mandatory

Almost all entities, business or otherwise, requires UEN in Singapore namely:

1. Business Entities registered with ACRA:

UEN is automatically issued to entities like Sole Proprietorships, partnerships, private limited companies and public companies by ACRA upon their successful registration. 

2. Entities not registered with ACRA but recognized by the Government:

Not all entities automatically receive one through ACRA. Entities that do not fall under the ACRA’s registration framework but still need to engage with systems like CorpPass, IRAS, or BizFile+, are required to apply for a UEN through specific issuing agencies.

Non-Profit organisations like charities, societies, religious organizations and trade associations, and other government recognized bodies fall under this category.    

Exemptions

· Individuals who operate under their full legal name without a separate business name may not need to register the business or apply for UEN, still being subject to the tax regulations.

· Sub-entities of a Singapore company classified as a branch.

· Individuals, unless your business is registered as a sole proprietorship.

Purpose of UEN     

The Singapore government issues the UEN to simplify interactions between entities and government agencies. Let us quickly have a look at all the purposes it solves:

1. Unified Identification: A single, unique identifier replaces the need for multiple identification numbers across different government systems, ensuring consistency in record keeping and reducing administrative redundancy.
2. Accountability and Transparency: The UEN system enhances transparency by uniquely identifying each entity making it easy to track, preventing duplication and fraudulent activities thereby building trust among stakeholders and investors.
3. Facilitating Digital Transactions: Enable entities to access e-services like CorpPass and submit documents via portals like BizFile+.

How to Obtain a UEN?

Entities not registered with ACRA but recognized by the government like charities, societies, mutual benefit organisations, healthcare institutions and clinics, etc., need to apply for UEN through the relevant issuing agency by following the below application process:

1. Identify the Issuing Agency:

Refer to the UEN Issuance Agency list at https://www.uen.gov.sg, the official UEN website, to determine the relevant issuing agency, you need to approach for your entity type.

For example, approach the Registry of Societies (ROS) if your entity is a Society, Commissioner of Charities for Charities and Ministry of Health for healthcare institutions and clinics.

2. Submit Application:

Visit the issuing agency’s website or office and complete the necessary forms and provide required documents such as organizational details, proof of activities, and identification of office bearers.

3. Approval and UEN Issuance:

Once your application is processed and approved, the agency will issue a UEN for your entity.

Statutory requirement to display UEN

To ensure transparency and compliance with government regulations, the government requires the entities to display their UEN at various places, such as:

1. On all official business correspondences like letters, invoices, purchase orders and receipts.

2. On official stationery such as letterheads, statement of accounts, etc.

3. On contracts or agreements between parties in the name of business.

4. On the Company’s official website.

5. Any document or communication intended for public disclosure.

6. While interacting with the government agencies and conducting business activities like filing corporate taxes with the Inland Revenue Authority of Singapore (IRAS), applying licenses through GoBusiness Licensing Portal, etc.

Failing to display the UEN at mandatory places and situations can result in fines, penalties or suspension of business operations. 

How Does UEN Differ from Other Identifiers?

While the UEN is Singapore’s primary identifier for entities, it is sometimes confused with other numbers like the GST Registration Number or Central Registration Number (CRN). However, the UEN often serves as a foundation for these identifiers. For instance, a GST-registered entity’s GST number is typically its UEN with a suffix.

PayNow Corporate and UEN

PayNow Corporate is a digital payment service in Singapore that enables businesses and organisations to make fast and secure financial transactions. Businesses and other entities can link their UEN to their corporate bank accounts to avail this facility, thereby streamlining their payment processes.

Singapore’s Online Search Directory

Singapore provides an Online Search Directory for UEN through ACRA and its platform BizFile+, which allows the public search for registered entities using their UEN. This service helps individuals and businesses verify the legitimacy and details of business registered in Singapore. You can also visit https://data.gov.sg/collections/1/view to view entities registered in Singapore with any of the issuing agencies

How does the government issue UEN to Foreign Companies?

Just like every other company, a Foreign Company in Singapore, its branch office or subsidiary, also gets a UEN upon successful registration with ACRA. However, if it establishes a Representative Office in Singapore, it must register with Enterprise Singapore (ESG), who issues UEN upon successful registration.

What is Special UEN (SUN)?

ACRA provides a facility to certain types of entities such as Companies, Limited Liability Partnerships or Sole Proprietorships, of having a special UEN that is easy to remember and identify with. It might serve branding or marketing purposes for some and cultural or symbolic significance for others.

They can submit their applications during the registration process, approval of which is subject to availability.

A preferred UEN can be chosen from the list of UENs reserved for this purpose by paying the required fee. Here, UEN prefixes and suffixes are system-generated and non-customisable. It is available through tiers:

1.  Tier 1: SUN is defined as a number with consecutive same number, or any number combination involving number ‘8’ for which Fee of S$ 3000 is chargeable.

2.  Tier 2: SUN is defined as a number with a repetitive pattern (excluding the number ‘8’), or ending with a triple identical number (such as ‘222’, ‘666’, ‘777’) for which S$ 1000 is chargeable.

You may also log on to https://www.bizfile.gov.sg/special-uen/faqs to answer all your queries related to SUN.

Conclusion: Does Your Business Need A UEN?

If you have running business in Singapore, the short answer is yes. A UEN is mandatory for all legally registered entities in the country. Even if your company is not locally incorporated but has a representative office or branch in Singapore, you will require a UEN.

However, if you are an individual conducting small-scale or freelance activities without formal registration, you may not need a UEN. In such cases, it might be worth considering whether registering as a sole proprietorship or another business type would benefit your operations.

Still thinking of registering your business in Singapore? Let 3E Accounting do it for. We will be your one stop solution for everything you need to do to establish your business and regular compliance thereafter. Right from registration of your business or incorporating your company, to filing annual and tax returns, we will handle everything for you.