05B4 Information for Moneylenders | IPTO - Insolvency and Public Trustee's Office
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Information for Moneylenders

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1. How can I start a moneylending business?

You are required to apply for a moneylender's licence from the Registrar of Moneylenders. Before you submit your application, it is advisable that you familiarise yourself with the provisions of the Moneylenders Act (Chapter 188) and its Rules. These are obtainable from the f 05B4 ollowing sources:

i. Toppan Lee Fung Pte. Ltd. Legal Publishing
1 Kim Seng Promenade, #18-01
Great World City East Tower Singapore 237994
Tel: 6826 9600 Email: legalpub@toppanleefung.com
Website: www.toppanleefung.com/webshop


ii.  Online at http://statutes.agc.gov.sg.


Please note that the applicant and/or any person who is or will be responsible for the management of the business will be required to sit for a Moneylenders' Test conducted by the Registry of Moneylenders with regard to the Moneylenders Act and its Rules.


You may register or incorporate a sole-proprietorship, partnership, limited liability partnership, limited partnership or company to carry on a moneylending business. Please note that the principal activity of the business entity must be "moneylending". In the case of a company, one of the object clauses of the Memorandum of Association should be the carrying on of a moneylending business. An example of an object clause is as follows:


"To lend money in accordance with and under a licence issued under the Moneylenders Act (Chapter 188)." 

When naming your business, firm or company, you are advised not to use the words “finance company” or any derivative of those words, in view of Section 4 of the Finance Companies Act (Chapter 108), which prohibits the use of such words. Please refer to the Finance Companies Act for more details. If you decide to use the words “finance company” or any of their derivatives in your business name, please ensure that you have obtained the consent of the Monetary Authority of Singapore for the use prior to the registration of your business/company with the Accounting and Corporate Regulatory Authority (ACRA). An application for a moneylender’s licence will not be approved when no such consent has been obtained.


The following are some of the criteria for the grant of a moneylender's licence:


i.        the applicant and every person who is or will be responsible for the management of the business must:-

  • be ordinarily resident in Singapore;
  • be of good character;
  • be a fit and proper person to carry on the moneylending business;
  • be at least 21 years old;
  • be familiar with the provisions of the Moneylenders Act and its Rules;
  • possess a minimum of 4 ‘O’ Level credit passes, including a credit pass in 'O' 05B4 Level English as first language
  • sit for and pass a written test regard to the Moneylenders Act and its Rules conducted by the Registry of Moneylenders (only for applications received on or after 1 January 2011)


ii.        the proposed business premises to be licensed is suitable for the conduct of the moneylending business; and


iii.        a security deposit of $20,000 for every place of business for the proper conduct of the business has been placed with the Accountant-General. The security deposit is to be provided in the form of an irrevocable Banker’s Guarantee upon approval of your application.


2. How can I apply for a Moneylender’s licence?

To be considered for a moneylender’s licence application, you will be required to either pass the Moneylender’s Test, or have a manager of your moneylending business pass the Moneylender’s Test. You may nominate up to two candidates (including yourself) to take the test. With effect from 22 August 2011, all applicants will be required to use the Moneylenders T 05B4 est Booking System to book a test date. A non-refundable test fee of $130 (including Goods and Services Tax) shall be payable per attempt per candidate. Please have your SingPass ready and click here to access the Moneylenders Test Booking System.


If you pass the Moneylenders’ Test and the Registry finds you suitable for the application for a moneylender’s license, you will be invited to submit an online application for the moneylender’s license. Upon receiving the Registry’s invitation, please click here for the online application. 


Important Note
All the information given in the application form must be correct and true. If the information given is found to be false or misleading, the moneylender's licence granted to you will be revoked by the Registrar of Moneylenders and you may be liable to prosecution for an offence under the Moneylenders Act.


Processing of Application
Your application will be processed upon your submission of all the required documents. In order for us to expedite the processing of your application, please ensure that all these documents are in order.


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Application Fee
The application fee (non-refundable) for a moneylender’s licence is $600 (inclusive of GST). This is payable upon submission of your application.


Licence Fee
The fee of a moneylender’s licence is $1,320 per annum. This is payable upon approval of your application. Payments can be made electronically via the Online Business Licensing Service by eNets Credit/Debit or Internet Banking.  

3. How to apply for approval for additional place(s) of business?

Under section 10 of the Moneylenders Act, licensed moneylenders may operate from more than one location with the approval of the Registrar of Moneylenders. If you wish to apply for approval to carry on business at additional place(s) of business, please complete and submit the application form to us together with a copy of your title deed/certificate evidencing your ownership of the proposed place of business or a tenancy, licence or other agreement evidencing your occupation of it.


Please send the application form to:


          Regi 05B4 stry of Moneylenders
          45 Maxwell Road
          #06-11 The URA Centre, East Wing
          Singapore 069118


Upon approval, you will be required to:


  • place a security deposit of $20,000 with the Accountant-General in the form of an irrevocable Banker’s Guarantee for every additional place of business; and


  • pay a prorated additional licence fee of $110 per month based on the unexpired months of your current moneylender’s licence for every additional place of business.


Approval of your proposed additional place(s) of business has to be renewed annually if you wish to carry on business at the additional place(s) of business after the expiry of a period of approval. Approved additional places of business will be processed for renewal at the same time as the renewal of a licence: see section below “Renewal of Licence”. The first renewal of an approved additional place of business will commence on the next renewal date of your licence. The additional licence fee payable for the renewal of approved additional place(s) of bus 0DED iness will be $1,320 per annum for every additional place of business.


Additional places of business will be approved (including renewed approvals) only if they satisfy the requirements under the Moneylenders Act.


Please also note that no additional place of business will be approved (including renewed approval) if the applicant ceases to be a licensee. In addition, the approval of all additional place(s) of business (including renewed approvals) will terminate upon the expiry or revocation of a licence.

4. How can I update my company’s or licensee’s particulars?

Please submit an online application at the Online Business Licensing Service (OBLS) website for the following update/changes to your company’s/firm’s/business’ profile. Further actions may also be required depending on the type of update:

 

 

Update / Changes

To submit online application

To return original licence

To forward a copy of tenancy agreement

To forward a copy of landlord’s approval

1.

Change of company  / firm/ business operating address

Yes

Yes

Yes

Yes

2.

Change of company/ firm/ business name

Yes

Yes

 

 

3.

Appointment of Agent to manage business in place of sole  -proprietor or partners who are individuals

Yes

Yes

 

 

4.

Appointment / admission of new director / managing director / partner

Yes

 

 

 

5.

Resignation/ withdrawal of director / managing director / partner

Yes

 

 

 

6.

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Change of company/ firm/ business contact details

Yes

 

 

 

7.

Change of Bank Account information

Yes

 

 

 

 

For update (1), a copy of the tenancy agreement and landlord’s approval for you to operate a moneylending business and for display of signage for the proposed new business premises is to be forwarded to the Registry of Moneylenders within seven days of the online application. If you are submitting a sub-tenancy agreement, you will also need to submit a duly dated and signed copy of the main tenancy agreement.
 

For updates (1) to (3), you must return your original moneylender’s licence to the Registry of Moneylenders after we have approved your application.

 

Please note that for updates (1) to (4), you must submit the online application to seek approval from the Registry of Moneylenders before you proceed with the update/changes. You will also need to update this information with ACRA after receiving the approval from the Registry of Moneylenders.

 

A copy of the online application form for the abovementioned updates/changes is available HERE.

 

For allotment of new shares or transfer of shares, please write to our Registry to seek prior approval with the following information:

 

  • Name, NRIC/Passport Number, address of transferor (if applicable);

 

  • Name, NRIC/Passport Number, address of transferee (For foreigner, please also provide date of birth, gender and nationality);

 

  • Number of shares to be transferred/allotted;

 

  • Whether the transferee will become a substantial shareholder as a result of the share transfer/allotment; and
 
  • Whether the transferor (if applicable) will change any substantial shareholding.

 

For your information, “Substantial shareholding” and “substantial shareholder” have the same meanings as in Division 4 of Part IV of the Companies Act (Cap. 50).

 

For the purpose of ob 05B4 taining the Registrar’s prior approval for the employment or engagement of any person to assist in the carrying on of the business, including persons employed or engaged to perform debt collection, you are required to submit an application to the Registry. Please download and complete the following annex and submit the application to e-mail address: ipto_ml_staff@ipto.gov.sg. Please click here to access annex.

 

In addition, a licensed moneylender must notify the Registry of Moneylenders in writing within 14 days of the making of a  bankruptcy order against the licensed moneylender, or against any director, partner or substantial shareholder of the licensed moneylender.

 

Our address is:

 

          Registry of Moneylenders
          45 Maxwell Road
          #06-11 The URA Centre, East Wing
          Singapore 069118

5. How do I renew my Moneylender’s licence?

A moneylender’s licence 0B68 is renewable subject to the good conduct of the licensee and the proper conduct of his moneylending business. The Registry will contact each licensee about three months before the expiry of his licence to initiate the licence renewal process. Licensees should prepare the following documents and forward them to the Registry when required:   


  • A tenancy agreement for the proposed place of business covering a one-year period after the expiry of the existing licence;


  • A renewed guarantee by a bank or insurer for a sum of $20,000, covering a one-year period after the expiry of the existing licence; 


  • A duly completed GIRO application form (for licensees who do not have an existing GIRO arrangement with the Registry for the deduction of licence fees);


  • Any outstanding monthly/quarterly statements of moneylending transactions.


With effect from 1 January 2011, all existing licensed moneylenders who were licensed before 1 January 2011 will be required to fulfil the following requirements before their licences can be renewed: the person who is or will be responsible for the management of the business must:-


(a)    possess a minimum of 4 'O' Level credit passes, including a credit pass in 'O' Level English as first language; and


(b)    sit for and pass a written test conducted by the Registry of Moneylenders with regard to the Moneylenders Act and its Rules. 


Details of the written test will be sent to each licensed moneylender.  

6. How can I terminate my Moneylender’s licence?

If you wish to terminate your moneylender's licence, you may submit your termination application HERE.

7. How can I apply for a certificate of exemption from the Moneylenders Act?

Under section 35(1) of the Moneylenders Act, a company or other business entity may apply for exemption from the Moneylenders Act. There is no prescribed form for the application for a Certificate of Exemption. Applicants are to write to the Registry of Moneylenders with the following information and supporting documents:


  • a brief description of the applicant;


  • a 05B4 copy of the Instant Information Service printout on the applicant issued by ACRA;


  • the business(es) and registered address(es) of the applicant;


  • the telephone and fax numbers of the applicant;


  • a detailed description of each type of activity for which the exemption is sought and the reasons for seeking the exemption;


  • a detailed description of the types or classes of borrowers in relation to each type of moneylending activity for which exemption is sought; and


  • a draft scope of exemption for our consideration.


Applications may be submitted to our address below:


          Registry of Moneylenders
          45 Maxwell Road
          #06-11 The URA Centre, East Wing
          Singapore 069118



All applications are considered on a case-by-case basis. The fee for the Certificate of Exemption is as follows:




Annual fee

(i)

Where the person exempted carries on the business of moneylending solely by granting personal or consumer loans to individuals.

$3,000

(ii)

Where the person exempted carries on the business of moneylending solely by granting loans other than those specified in paragraph (i) above.

$1,000

(iii)

Where the person exempted carries on the business of moneylending to persons referred to in paragraphs (i) and (ii).

$4,000

We will advise you of the mode of payment of the fee after your application is approved.

8. How do I renew my certificate of exemption?

To renew your Certificate of Exemption, please write to the Registry of Moneylenders one month before the expiry of your Certificate of Exemption with the following information and supporting documents:


  • a copy of the Instant Information Service printout issued by the ACRA;


  • whether there are/ 0B68 will be any changes in the company’s business(es) and registered address(es);


  • whether there are/will be any changes in the company’s business activities covered by the existing/previous Certificate of Exemption;


  • whether there are/will be any changes to the types or classes of borrowers in relation to any of the company’s business activities covered by the existing/previous Certificate of Exemption; and


  • whether the company has granted any loans after the expiry of the Certificate of Exemption (for late renewals only).


All applications are considered on a case-by-case basis. The fee for the renewal of the Certificate of Exemption is as follows:




Annual fee

(i)

Where the person exempted carries on the business of moneylending solely by granting personal or consumer loans to individuals.

$3,000

(ii)

Where the person exempted carries on the business of moneylending solely by granting loans other than those specified in paragraph (i) above.

$1,000

(iii)

Where the person exempted carries on the business of moneylending to persons referred to in paragraphs (i) and (ii).

$4,000


We will advise you of the mode of payment of the fee after your application is approved.

9. Do I qualify as an “excluded moneylender” under the Moneylenders Act?

Under the Moneylenders Act, an “excluded moneylender” will not be required to be licensed or seek exemption from the Act to grant loans. An excluded moneylender includes any person who:


I. is licensed, approved, registered or otherwise regulated by the Monetary Authority of Singapore under any other written law, to the extent that such person is permitted or authorised to lend money or is not prohibited from lending money under that other written law;


II. lends money solely to his employees as a benefit of employment;


III. lends money solely to accredited investors within the meaning of section 4A of the Securities and Futures Act (Cap. 289); and


IV. lends money sole 05B4 ly to —

a. corporations;


b. limited liability partnerships;


c. trustees or trustee-managers, as the case may be, of business trusts for the purposes of the business trusts;


d. trustees of real estate investment trusts for the purposes of the real estate investment trusts,


V. carries on any combination of the activities or services in (II), (III) or (IV); or


VI. carries on any business not having for its primary object the lending of money in the course of which and for the purposes whereof he lends money.


Persons granting business loans to sole-proprietors, partners or limited partners where such lending does not fall under any of the categories of excluded moneylenders, are not excluded moneylenders. These lenders will still need to apply for a licence or exemption under the Act to grant such loans.

Last updated on 21 Apr 2014
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