The Business Registration Service (BRS) has introduced tighter verification of changes in company shareholding and directors as part of a strategy to curb fraud in corporate records.
Under the changes, directors and shareholders are now required to provide direct confirmation for applications involving the resignation and appointment of directors, as well as the transfer of shares.
These changes require direct confirmation from affected individuals (referred to as ‘authenticators’) to validate the legitimacy of corporate filings.
‘The primary verification method is a system-based process, where authenticators receive a One-Time Passcode (OTP) via their registered email and mobile number, along with a link to the Business Registration Service version two (v2) consent portal,’ law firm Bowmans said in a note.
‘Authenticators must log into their eCitizen account, access the transaction details, and indicate consent by selecting ‘Approved’ or ‘Declined’, followed by entry of the OTP. Approved applications proceed automatically once all required consents are obtained, while declined applications are halted,’ it added.
Where system verification is not yet implemented, email confirmation may be used. If verification through a registered email is unsuccessful, BRS may require virtual call confirmation via Zoom.
‘The updates aim to enhance due diligence, strengthen corporate governance, and prevent fraudulent or disputed changes to company records. Authenticators are required to have eCitizen accounts and maintain access to their registered contact details to avoid delays in processing,’ Bowmans said.
Under the BRS changes, where an application is lodged to resign or appoint a director, or to transfer shares, the director being appointed or resigning, or the transferor of shares (authenticator), will be required to provide direct confirmation by consenting to the company changes or transactions. The verification or consent process requires the authenticator to have an eCitizen account.
Where the authenticator(s) decline, the application will not proceed and will be marked as ‘declined’. The authenticator(s) may provide a reason for their decision.
Where the authenticator accepts, the application will be automatically approved, provided there are no outstanding consents required from other parties.
Records show that in the financial year 2024/25, the BRS registered a total of 138,000 business entities, which comprised 73,624 business names, 62,287 private companies, 52 public companies, 185 foreign companies, 894 companies limited by guarantee, 522 limited liability partnerships, 48 limited partnerships and 388 trusts. This is an additional 1,791 registrations compared to the 2023/24 financial year, or a 1.31 percent increase.
‘Across the months, a wavy trend of registrations has been experienced, subject to historical trend factors. For instance, the lowest number of registrations was experienced in the month of December (8,315) as a result of the long festivities during the month that alter the normal uptake of customer applications,’ said the BRS.