Singapore has long been a popular destination for entrepreneurs looking to set up a business. With its business-friendly policies, strategic location, and robust economy, it's no surprise that many global entrepreneurs choose to incorporate their businesses in this thriving hub. However, before moving forward with setting up a company, understanding the cost to register a company in Singapore is essential for budgeting and ensuring that your business setup runs smoothly.
In this article, we’ll break down the different costs involved in registering a company in Singapore, including government fees, professional service charges, and ongoing compliance costs. Whether you're setting up a private limited company or another business entity, understanding these expenses will help you make informed decisions.
Key Costs Involved in Registering a Company in Singapore
When you’re considering company registration in Singapore, it’s important to account for both the one-time setup fees and ongoing operational costs. Let’s take a look at the breakdown of these costs.
1. Government Fees for Company Incorporation
One of the first costs you’ll incur is the government registration fee. The Accounting and Corporate Regulatory Authority (ACRA) is the governing body responsible for company registration in Singapore, and they charge fees based on the type of business entity you are incorporating. For most entrepreneurs, the most common business structure is a private limited company. Here are the government fees you’ll typically encounter:
Company Name Reservation Fee: Before you can register your company, you need to reserve your business name. The reservation fee is approximately SGD 15. This fee is non-refundable but is included as part of the overall registration process.
Incorporation Fee: The actual cost to register a company in Singapore is typically SGD 300. This includes the submission of your company’s incorporation documents to ACRA.
Stamp Duty: If your company is issuing shares as part of its incorporation, you will also need to pay stamp duty. The stamp duty is calculated at 0.2% of the company’s share capital or the total value of the shares issued, whichever is higher. For example, if your company’s share capital is SGD 1,000, the stamp duty will be SGD 2.
2. Professional Services Fees
Many entrepreneurs hire professionals or agencies to handle the company registration process, especially if they are unfamiliar with the process or don’t have a physical presence in Singapore. These service fees can vary depending on the level of assistance you need. Let’s break down the common costs of professional services:
Company Incorporation Service: If you choose to work with a professional service provider or incorporation agency, the cost for a basic company formation package typically ranges between SGD 500 and SGD 1,500. This often includes name reservation, preparing incorporation documents, submitting the application to ACRA, and providing the necessary company secretary.
Company Secretary Services: Singapore law requires that every company has a corporate secretary within six months of incorporation. The cost for a company secretary typically ranges from SGD 300 to SGD 600 annually. It’s important to note that a company secretary in Singapore must be a qualified professional, so this is a recurring cost.
Registered Office Address: Your company must have a registered office address in Singapore. If you don’t have a physical office, you can use a virtual office service. The cost of a virtual office address typically ranges from SGD 200 to SGD 500 annually, depending on the service provider and the level of services included (e.g., mail forwarding and call answering).
Nominee Director Services: If you are a foreigner and don’t have a Singapore resident director, you may need to appoint a nominee director. The cost of this service typically ranges from SGD 1,000 to SGD 3,000 annually, depending on the service provider.
3. Additional Services (Optional)
While not required for every business, there are some additional services that may be beneficial to your company’s operations, and they will come with their own costs:
Opening a Corporate Bank Account: Opening a corporate bank account in Singapore is a crucial step after company registration. Some banks may charge setup fees, but generally, it’s free to open an account. However, banks may require a minimum deposit to activate your corporate account, which typically ranges from SGD 1,000 to SGD 5,000.
Trademark Registration: If you want to protect your company’s brand, registering a trademark with the Intellectual Property Office of Singapore (IPOS) is an important step. The cost to register a trademark is typically around SGD 250 per class of goods or services.
GST Registration: If your company’s annual taxable turnover exceeds SGD 1 million, you’ll need to register for Goods and Services Tax (GST) with the Inland Revenue Authority of Singapore (IRAS). While there is no cost to register for GST, you will need to comply with ongoing reporting requirements, which may involve additional accounting and administrative costs.
4. Ongoing Compliance Costs
Once your company is registered, there are ongoing costs that you’ll need to budget for to ensure your business remains compliant with Singapore’s regulations:
Annual Filing Fees: Your company will need to file an annual return with ACRA. There is a fee of approximately SGD 60 for filing your company’s annual return.
Accounting and Tax Filing: Singapore requires all companies to maintain proper accounting records and file annual financial statements. Depending on the complexity of your business, accounting services can cost anywhere from SGD 500 to SGD 3,000 or more annually. If your company is required to undergo an audit (based on factors like revenue or number of employees), the audit fee can range from SGD 1,500 to SGD 5,000 annually.
Annual Company Secretary Fee: As mentioned earlier, the cost for maintaining a company secretary typically ranges from SGD 300 to SGD 600 per year.
Summary of Costs to Register a Company in Singapore
Here’s a quick summary of the estimated costs involved in registering a company in Singapore:
| Service | Estimated Cost (SGD) |
|---|---|
| Company Name Reservation | 15 |
| Company Incorporation Fee | 300 |
| Stamp Duty (for share capital) | 2 (for SGD 1,000 capital) |
| Professional Services (Incorporation) | 500 – 1,500 |
| Company Secretary Services | 300 – 600 annually |
| Registered Office Address (Virtual Office) | 200 – 500 annually |
| Nominee Director Services (if required) | 1,000 – 3,000 annually |
| Trademark Registration (optional) | 250 per class |
| Corporate Bank Account Setup (optional) | Free – SGD 5,000 deposit |
| GST Registration (if applicable) | Free |
| Accounting and Audit Services | 500 – 5,000 annually |
Conclusion
The cost to register a company in Singapore is relatively affordable, with basic incorporation fees starting from as low as SGD 300. However, depending on your business needs, there are several additional costs you should be aware of, including professional service fees, ongoing compliance costs, and optional services such as trademark registration and accounting.
By understanding these costs and planning ahead, you can ensure that your company registration in Singapore is smooth and compliant with local regulations. With its favorable business environment, setting up a company in Singapore offers a strong foundation for global entrepreneurs to thrive.
