Statute Details
- Title: Finance Companies (Licence Fees) Regulations 1994
- Type: Subsidiary legislation (sl)
- Authorising Act: Finance Companies Act 1967 (noted in the extract as linked to the Act, including a reference to Finance Companies Act 1967 (Section 57(…)))
- Key Provision: Regulation 2 (Fees to transact financing business)
- Current Status: Current version as at 27 Mar 2026 (per the extract)
- Revised Editions Shown in Extract: 1995 RevEd (1 Apr 1995), 2001 RevEd (31 Jan 2001), 2025 RevEd (17 Dec 2025)
- Commencement Date: Not stated in the provided extract
- Regulations Structure: The extract shows Regulations 1 and 2 only
What Is This Legislation About?
The Finance Companies (Licence Fees) Regulations 1994 are subsidiary rules made under the Finance Companies Act 1967 to set out the licence fees payable to the Monetary Authority of Singapore (MAS) for licences to transact “financing business”. In practical terms, the Regulations specify the annual fees that a finance company must pay depending on where it is licensed to operate—namely, at its head office/main office and at each branch or sub-branch.
In plain language, the Regulations answer a straightforward administrative question: how much does it cost (per year) to hold a licence to carry on financing business in Singapore, and how does the fee scale with additional offices? The fee structure is designed to be predictable and to align the cost of licensing with the size and footprint of the licensed business.
Although the Regulations are brief, they are legally significant because licence fees are often a compliance and budgeting issue for regulated entities. They also matter for licensing applications, renewals, and ongoing regulatory administration by MAS.
What Are the Key Provisions?
Regulation 1 (Citation). Regulation 1 provides the short title: “These Regulations are the Finance Companies (Licence Fees) Regulations 1994.” This is standard legislative drafting and primarily assists with referencing the instrument.
Regulation 2 (Fees to transact financing business). Regulation 2 is the operative provision. It states that the following fees are payable for a licence to transact financing business under the Finance Companies Act 1967 granted by MAS, in respect of specific locations of a finance company.
(a) Head office / main office fee. Under Regulation 2(a), a fee of $35,000 per annum is payable for the head office or main office of a finance company. This means that the annual licence fee includes a base amount tied to the principal place of business that MAS recognises for licensing purposes.
(b) Branch office / sub-branch fee. Under Regulation 2(b), a fee of $5,000 per annum is payable for each branch office or sub-branch office of that finance company. The “per annum” and “each” language is important: it indicates that the fee is recurring annually and that each additional licensed office location attracts its own fee charge.
Practical implications of the fee structure. The Regulations establish a simple additive model: the total annual licence fees would typically be calculated as (i) $35,000 for the head office/main office plus (ii) $5,000 for each branch or sub-branch office. For a practitioner advising a finance company, this has immediate consequences for corporate planning, licensing strategy, and cost forecasting.
Link to MAS licensing under the Act. The Regulations do not themselves define “financing business” or the licensing framework; instead, they assume the existence of a licence granted by MAS under the Finance Companies Act 1967. Accordingly, Regulation 2 should be read together with the licensing provisions of the Act (including the referenced section in the extract). The Regulations function as the fee schedule that attaches to the licensing regime.
How Is This Legislation Structured?
The Finance Companies (Licence Fees) Regulations 1994 are structured as a short instrument with at least two regulations shown in the extract:
Regulation 1 sets out the citation (short title). Regulation 2 sets out the substantive fee amounts payable for licences to transact financing business, broken down by office type (head office/main office versus branch/sub-branch).
Notably, the extract does not show additional parts, schedules, exemptions, payment timing rules, or enforcement mechanisms. That does not mean such matters are absent from the overall legal framework; rather, they may be addressed in the Finance Companies Act 1967 or in other subsidiary instruments. For legal work, the key takeaway is that this Regulations instrument is essentially a fee schedule rather than a comprehensive licensing code.
Who Does This Legislation Apply To?
The Regulations apply to finance companies that hold (or apply for) a licence to transact financing business granted by MAS under the Finance Companies Act 1967. The fee obligations attach to the licensed entity and are calculated based on the licensed office locations.
In terms of operational scope, the fee schedule applies to the company’s head office/main office and to each branch office or sub-branch office. Therefore, the Regulations are particularly relevant to companies with multi-location operations and to those planning to open, expand, or restructure offices—because each additional licensed office location can increase the annual fee burden.
Why Is This Legislation Important?
Even though the Finance Companies (Licence Fees) Regulations 1994 are brief, they are important for regulated entities and their advisers because licence fees are recurring costs that can affect financial planning and compliance management. The Regulations provide a clear, fixed annual fee schedule: $35,000 per annum for the head office/main office and $5,000 per annum for each branch/sub-branch.
From a practitioner’s perspective, the value lies in certainty. Fixed fee amounts reduce ambiguity in budgeting and help ensure that internal compliance teams and finance departments can accurately forecast regulatory costs. They also assist in assessing the financial impact of corporate actions such as:
- opening a new branch or sub-branch;
- changing the location designated as the head office/main office;
- restructuring operations (for example, consolidating offices or changing the licensing footprint); and
- preparing for licence renewals or ongoing regulatory administration.
Additionally, because the Regulations specify fees “in respect of” particular office types, they can become relevant in disputes or queries about whether a particular office qualifies as a branch or sub-branch for fee purposes. While the extract does not define those terms, the fee schedule’s office-based structure means that classification questions may arise in practice and should be handled by reference to MAS licensing determinations and the definitions/requirements in the Finance Companies Act 1967 and any related guidance.
Finally, the Regulations illustrate how Singapore’s financial regulatory framework uses subsidiary legislation to operationalise statutory licensing regimes. The Act provides the licensing authority and the legal basis for regulation; the Regulations provide the administrative fee schedule that enables MAS to recover costs and maintain the licensing system.
Related Legislation
- Finance Companies Act 1967 (licensing framework; the extract references a section linked to the making of these Regulations)
- Finance Companies (Licence Fees) Regulations 1994 (this instrument; current version as at 27 Mar 2026, including the 2025 Revised Edition)
Source Documents
This article provides an overview of the Finance Companies (Licence Fees) Regulations 1994 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.