Legal Framework and Regulations

In Singapore, the legal framework for Corporate and Commercial Law is largely based on the English common law of contract. The Companies Act (Cap 50, 2006 Rev Ed) governs companies, supplemented by common law. Other statutes also apply to specific types of companies, such as the Limited Liability Partnership Act (Cap 163A, 2006 Rev Ed), the Banking Act (Cap 19, 2008 Rev Ed), and the Insurance Act.

For a contract to be formed, one party needs to have made an offer which the other accepted. Both parties must have the objectively ascertained intention to be bound and must provide consideration. The Electronic Transactions Act (Cap 88, 2011 Rev Ed) clarifies that offers and acceptances may be made in electronic form.

Apart from the terms expressly written in the contract, there may be times where parties try to imply a term which is not written into the contract. The threshold for doing so is high so as not to disturb commercial certainty.

Singapore is well-known for being a business-friendly country. The country’s regulations have been developed specifically to welcome foreign investments and to support a strong and open business environment. It includes regulations related to Corporate Tax returns with IRAS, Goods and Services Tax registration, filing annual returns with ACRA, labour laws, personal data protection compliance, Singapore’s contracts laws, and anti-competitive activities.