Q：
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Any minimum paid-up capital to be eligible for application of Debt Collection License?
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A：
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No. There is no minimum paid-up capital required for the application of Debt Collection Licence.
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Q：
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If I am running business and collect outstanding debts from my own clients, do I require a debt collection licence issued by the Singapore Police Force (SPF)?
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A：
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Generally, the person(s) does not require obtaining a licence if the debts collecting is owe to you or your entity. The debt collection licence is only required when your company is offering business for debt collection.
For instance, if your company collect debts from a debtor on behalf of another person (i.e. an entity or and individual), it is mandatory for your company to obtain a licence from the SPF, unless exempted or falls under a regulated business.
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Q：
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What company is being exempted from applying debt collection licence to operates debt collection business?
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A：
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Entities whose debt collection activities are considered to have minimal potential for causing public disturbances are exempt from the provisions of the Debt Collection Act.
These entities include the Official Assignee, the Official Receiver, licensed insolvency practitioners, regulated legal practitioners, and certain types of legal practices. It also encompasses entities like Joint Law Ventures, licensed foreign law practices, Qualifying Foreign Law Practices, and Singapore law practices. Additionally, it includes persons who acquire debts through business transactions or security agreements.
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Q：
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Is my company a Regulated Business?
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A：
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In general, regulated business covers entities that are regulated by other government agencies. Such business includes banking activities by banks, permitted activities by merchant banks, credit card issuing by licensed issuers, financing by finance companies, and money lending by licensed or exempt moneylenders.
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Q：
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My company is a regulated business, any licence we need to obtain from SPF before collect any debt that is owed to my company?
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A：
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The Regulated Business needs not to obtain Debt Collection license from SPF if debt collecting activities required. However, the regulated business will only be allowed to carry out debt collection activity when the business comply with conditions specified in The Schedule Conditions of Class Licence of the Debt Collection (Class Licence) Order 2023.
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Q：
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After my company’s Debt Collection License has been approved, any action I required before I employ individual as my business’s debt collectors?
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A：
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Yes. As a Licensee, you will require to obtain approval from SPF jointly with the individual who will be employed as a debt collector.
Do take note that the individual must be granted approval by the SPF before the individual may be deployed as the company’s debt collectors.
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Q：
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Do I need to obtain approval from the SPF before carrying on debt collection activity as a debt collector of a Regulated Business?
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A：
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No. If you are acting as an authorised debt collector of a Regulated Business with class licence, no separate approval is required from SPF.
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Q：
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I am owning several debt collection businesses, do I need to apply separate licences for each business?
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A：
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If your businesses are registered with Accounting Corporate Regulatory Authority (ACRA) as separate entities, the license must be applied for each entity, to continue operating your debt collection business.
However, if your business is registered as a single entity but with multiple branch office in Singapore, only one Debt Collection Licence apply under the entity is sufficient.
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Q：
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Can the same individual be deployed as a debt collector in my different entities?
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A：
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If you wish to deploy the same individual as different entities’ debt collector, it is mandatory for you, the Debt Licensees of each entity, to obtain approval from SPF jointly with the same individual who will be employed as debt collector in all your entities.
Unless the individual has been approved by the SPF as all entities’ debt collectors. Otherwise, the individual must not be deployed as a debt collector of the entity which no approval has been granted by SPF.
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Q：
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What to do if the individual ceased to be deployed as a debt collector of my entity.
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A：
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You are required to notify the SPF of the cessation of deployment of any individual as a debt collector of your entity within 14 days from the date of cessation.
If the individual was deployed as the debt collector of your different entities, you will need to notify SPF separately for each of your entities.
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FAQ
