Singapore - A company here has allegedly sold flags that resemble those of terror group Islamic State in Iraq and Syria (ISIS).

The Straits Times understands that Albenyahya Enterprise ordered about 20 flags in July, during the month of Ramadan, and sold them online.

The company owner wrote on Albenyahya Enterprise's Facebook page on Tuesday night that it has come to his attention that he and his business have been linked to supporters of terrorism.

He referred to this as "baseless accusations".

The owner of the company wrote: "Upon legal advice, to protect my name, my family and my business, I have made a police report with regards to this incident.