Converting an existing accounting firm to a PAC

What is a PAC

PACs have a company structure. They are one of the three types of accounting entities that you can set up in Singapore to provide public accountancy services.

What you need to know

The Accountants Act does not allow you to convert an existing public accounting firm (PAF) to a PAC. If you want to change your business structure, you need to:

1. Set up a new PAC

2. Revoke your PAF

3. Transfer your business to the PAC

Steps to transfer your business

1. Notify your clients: You must give written notice to all clients at least seven days before the transfer. The notice must include:

   • Your intention to transfer the business to a PAC

   • How the transfer affects any audit appointments

2. Understand the legal implications: Your written notice is treated as a resignation notice under section 205AA(1) of the Companies Act. This means:

   • Your client's directors must call a general meeting as soon as practical to replace the resigned PAF.

   • The meeting is to appoint a new auditor. This can be your new PAC.

   • You need to file an appointment notification with ACRA.

3. Transfer your business: Transfer all of the following to your new PAC:

   • Property and assets

   • Interests and rights

   • Privileges

   • Liabilities and obligations

   • Undertakings

   • Other business elements