New Announcement
NEW LICENSING REQUIREMENTS FOR DEBT COLLECTION BUSINESSES
1. The Debt Collection Act 2022 (DCA) was passed in Parliament on 13 September 2022 and will take effect on 1 December 2023. The new licensing requirements for a debt collection business are as follows:
a. Licences for Debt Collection Companies. Debt collection companies will require a licence from the Police, unless they are excluded from the said Act1 or class licensed2. It will be an offence to do so without a valid licence. Licensing conditions will be imposed and the Police may suspend or cancel a licence if the licensee is found to have breached the licensing conditions, or any regulation under the DCA.
b. Approvals for Debt Collectors. Persons who work as debt collectors for a licensed debt collection company must obtain Police’s approval. Such persons must submit a joint application with his/her debt collection employer-company to the Police. The debt collection employer-company will be accountable for the conduct of its debt collectors. Similarly, the Police may rescind a person’s approval if he is found to have breached any regulation under the DCA.
2. If you currently have a debt collection business and/or if you have employees currently employed as debt collectors, you may continue your operations between 1 December 2023 and 29 February 2024 without a licence and/or approval. This is a “savings and transition” (S&T) period provided by the DCA to allow for the industry to transit to the new licensing regime. You may read the DCA at https://sso.agc.gov.sg/.
3. During the S&T period, you may still submit an application for your business and/or for your employee and the Police would process it. Please be informed that the Police will inform you whether your application is approvable. If it is, the approval takes effect only from 1 March 2024 onwards. If it is not, you will have to cease operations by 1 March 2024.
4. To apply for a debt collection business licence, please visit https://www.gobusiness.gov.sg/. Applications are open from 1 December 2023 at 9.00 am onwards.
5. For more details on the debt collection licensing regime, you may visit https://www.police.gov.sg/e-Services/Police-Licences/Debt-Collection-Licence
6. If you have enquiries, please contact the Police Licensing & Regulatory Department at Tel: 6557 3461 between 8.30 am and 6.00 pm (on Mondays-Fridays, excluding public holidays) or email your query to SPF_PLRD_GLD@spf.gov.sg
Footnote:
1Exclusion from DC Act. Entities whose debt collecting activities are deemed to pose a low risk of public disorder are excluded from the DC Act. This includes the Official Assignee, the Official Receiver, licensed insolvency practitioners, regulated legal practitioners and regulated non-practitioners, joint law ventures, licensed foreign law practices, qualifying foreign law practices, Singapore law practices, accounting corporations, accounting firms, accounting limited liability partnerships, chartered accountants, and public accountants.
2Class Licensing Regime for Lower-Risk Entities. A class licensing regime will be introduced for entities that are regulated by other government agencies and that are engaged in lending and collecting money owed to their respective businesses. This includes banks, merchant banks, licensed credit card or charge card issuers, finance companies, and licensed and exempt moneylenders. While these entities do not need to be individually licensed, they must comply with the conditions of the class licence.
Under the Debt Collection Act 2022, a licence is required when the business or part of the business is of debt collection in nature; for example, collecting debt from a debtor on behalf of another person and/or debts owed to own business. Debt Collection is defined as any activity undertaken in Singapore that involves finding the debtor of a debt or requesting, demanding and collecting debt from the debtor.
The applicant must be holding one of the following positions:
a) For Entity Type: Limited Liability Partnership
Eligibility Criteria: The applicant must be a Partner or Manager.
b) For Entity Type: Company
Eligibility Criteria: The applicant must be the Managing Director, Chief Executive Officer, or a Director.
c) For Entity Type: Business (Sole Proprietor/Partnership)
Eligibility Criteria: The applicant must be the Sole Proprietor or a Partner.
d) For Entity Type: Limited Partnership
Eligibility Criteria: The applicant must be a Partner.
The applicant will have to make the following declarations while submitting a New, Renewal or Amendment application:
a) Declaration on whether the applicant’s business is able to pay all its debts; and
b) Declaration on whether the applicant’s business has gone and/or is likely to go into compulsory or voluntary liquidation.
Types of Applications |
Validity |
Fees (Non-Refundable) |
New Debt Collection Business Licence |
Three Years |
$600 upon approval of application |
Renewal of Debt Collection Business Licence Application |
Three Years |
$600 upon approval of application |
Cancel of existing Debt Collection Business Licence |
NA |
NA |
Withdrawal of Debt Collection Business Licence Application |
NA |
NA |
New
This is for persons who wish to apply for a debt collection business licence. Under the Debt Collection Act 2022, a licence may be required when the business involves debt collection, e.g. collecting debt from a debtor on behalf of another person.
You may submit a new Debt Collection Business Licence here.
Renew
This is for persons who wish to apply to renew an existing debt collection business licence. The applicant shall also submit an application to renew the approvals for the debt collectors deployed by him via the GoBusiness portal when he applies to renew his debt collection licence.
You may submit your renewal of Debt Collection Business Licence here.
Amend Licence Details
You may make the following amendments to your existing Debt Collection Business Licence:
- Company Name (*Should the UEN change, you will have to apply for a new Debt Collection Business Licence)
- Key Appointment Holders
- Contact Details
- Mailing address
- Business Operating Address
Cancel Licence
Under the Debt Collection (General) Regulations 2023, licensees must notify Police of the cessation within 14 days after the cessation of the debt collection business
You may cancel your existing Debt Collection Business Licence any time before its expiration.
Please note that there will be no refund of the licence fees upon cancellation as stipulated under the Debt Collection Act 2022.
Withdrawal
You may withdraw your application for Debt Collection Business Licence at any time before the licence is approved.
If the licence has been approved and issued, you will no longer be able to withdraw it and you will need to make a request to cancel the licence.
No supporting document is required at the point of application.
Approximately 3 weeks from the receipt of the application and if all necessary supporting documents are enclosed (if required). Any incomplete or incorrect submission will be rejected.
You will be notified of the outcome via SMS and/or Email. Alternatively, you may login to GoBusiness Licensing to view your application status.
You will be directed to GoBusiness Licensing webpage, which will require you to sign in using your SingPass
If you require assistance or guidance on the GoBusiness portal, please contact their helpdesk at (+65) 6774 1430 or email licences-helpdesk@crimsonlogic.com.sg
The process may take around 15-20 minutes to complete.
Under the Debt Collection Act 2022, a Debt Collector must make an application jointly with each debt collection businesses they intend to work for, and obtain an approval before they can carry out debt collection. The licensee of the debt collection business shall submit the application for the debt collector approval via the GoBusiness licensing portal.
Types of Applications |
Validity |
Fees (Non-Refundable) |
New Debt Collector Approval Application |
Approval tagged to the validity of a Debt Collection Business Licence |
$55 upon submission of application |
Cancel of existing Debt Collector Approval Application |
NA |
NA |
Withdrawal of Debt Collector Approval Application |
NA |
NA |
New
This is for persons to apply for approval to work as debt collectors. This application must be made jointly with all the debt collection businesses that the applicant intends to work for and an approval must be obtained before they may carry out debt collection activities. The applicant shall submit the application for approval via the GoBusiness portal.
You may submit a Debt Collector Approval Application here.
Amend/Terminate Debt Collector’s Approval
This is for persons who wish to amend or terminate the approval for employees who are deployed as debt collectors.
You must notify the Police within 14 days after you cease the deployment of any person deployed by you to collect debts.
Withdrawal
You may withdraw your application for Debt Collector Approval at any time before it is approved.
If the application has been approved, you will no longer be able to withdraw it and you will need to make an application to terminate the approval.
For Debt Collector Approval Application, you will need the following supporting document:
Approximately 3 weeks from the receipt of the application and if all necessary supporting documents are enclosed (if required). Any incomplete or incorrect submission will be rejected.
You will be notified of the outcome via SMS and/or Email. Alternatively, you may login to GoBusiness Licensing to view your application status.
You will be directed to GoBusiness Licensing webpage, which will require you to sign in using your SingPass
If you require assistance or guidance on the GoBusiness portal, please contact their helpdesk at (+65) 6774 1430 or email licences-helpdesk@crimsonlogic.com.sg
The process may take around 15-20 minutes to complete.
Since 1 August 2021, all over-the-counter services at the Police Licensing & Regulatory Department at the Police Cantonment Complex (391 New Bridge Road), would be only through pre-approved appointments (including making payments at the counter)
2. To make an appointment, please use the following link at www.picktime.com/policelicensing or the below QR code:
3. We will attend to cases of persons who turn up without an appointment on a case by case basis, only if they have a valid reason(s).
4. For all other enquiries, please use our online services at www.police.gov.sg/licence or email us at SPF_Licensing_Feedback@spf.gov.sg.
5. Thank you.
Additional information related to Debt Collection Business Licence and Debt Collector Approval.
GoBusiness is the go-to platform for businesses in Singapore to access Government e-services and resources, including applying for a debt collection business licence and/or debt collector approval.
If you require assistance or guidance on the GoBusiness portal, please contact their helpdesk at (+65) 6774 1430 or email licences-helpdesk@crimsonlogic.com.sg