Registering a company in Singapore is a fairly straightforward process, but it is essential to first determine the initial cost of incorporation and the subsequent expenses for other crucial components.
Initial Incorporation Costs
For local residents, the base cost to register a company in Singapore is SGD 315, covering the SGD 300 company registration fee with the Accounting and Corporate Regulatory Authority (ACRA) and an SGD 15 company name application fee. These fees are payable during the incorporation process via the Bizfile+ portal and are legally required to register your new company.
While locals can use their SingPass ID to log in to Bizfile+ and pay these fees, foreign entities and individuals registering a company in Singapore will need to engage a Registered Filing Agent (RFA) to do so on their behalf. Standard incorporation services are typically included in an incorporation package, along with post-registration support for compliance matters and other relevant services. Prices for such packages may vary, with basic ones starting at SGD 400 and more comprehensive solutions starting at SGD 3,000.
Ongoing Compliance Costs for Singaporean Companies
Before you begin the business incorporation process, you must understand that there will be ongoing compliance costs, ranging from office rentals to accounting fees and more. Be sure to keep these in mind to meet these key requirements and maintain your company’s compliance and financial health.
Nominee Director
At least one company director must be a Singaporean resident. You can consider enlisting service providers that offer nominee director services, with prices varying based on the extent of support, such as handling administrative tasks or other duties.
Company Secretary
You are obligated to hire a qualified company secretary, who is a Singaporean resident, within six months of your company’s incorporation. You may consider contracting professional secretarial services to effectively handle your company records, with prices ranging from SGD 288 to SGD 2,000.
Registered Office Address
A company must have a registered office address, a physical location accessible to the public for at least five hours during business hours each working day. As such, P.O. box addresses are not allowed. You can rent an office space or choose a scalable virtual office service if you manage a small or primarily remote team. Virtual offices offer significant flexibility and cost savings for all your business activities, including meetings with clients and fellow employees.
Corporate Banking
A corporate banking account is required for all company-related expenses. You may typically need to make an initial deposit of SGD 1,000 or pay additional fees to set up the account. Your company will also be required to maintain a minimum balance in the account for as long it is active. Some RFAs may include support with opening a new corporate banking account as part of their new incorporation packages.
Annual Return Filings
Unless exempted, your company secretary must file all annual returns, including financial statements, with ACRA as part of compliance checks under the Singapore Companies Act. ACRA charges an SGD 60 annual filing fee, which may be included in the total cost of a corporate secretarial service provider’s services. Be sure to check beforehand whether the service provider includes the annual filing fee and other administrative fees in their services.
Accounting & Tax Filings
Your company must keep accurate records of all financial and tax transactions, including goods and services tax records, and retain all such records for at least 5 years. Additionally, your company will need to establish internal accounting protocols to ensure all transactions and records are properly authorised and recorded. This includes paying a Goods and Services Tax (GST) at prevailing rates for companies with an annual turnover exceeding SGD 1 million.
Given the complexity of accounting and financial management, consider enlisting the support of an accredited accounting or bookkeeping firm to maintain compliance. Many of these service providers offer flexible, scalable accounting solutions to maintain company compliance at a reasonable price.
Regular Audits
Your company may be required to appoint an auditor within 3 months of incorporation to conduct statutory audits and ensure compliance, transparency, and accountability, in line with current financial regulations. You can consider hiring statutory audit services, but the cost of audits may vary depending on your company’s size, the complexity of financial statements, and other key factors.
Additional Expenses for Foreign Business Owners
Foreign individuals and companies setting up in Singapore may incur additional expenses when incorporating a foreign business in Singapore.
Employment Passes
Foreign professionals, managers, and executives who plan to work with a company will need to apply for employment passes with the Singaporean Ministry of Manpower (MOM) and meet set eligibility requirements. For hiring skilled and semi-skilled foreign workers, they will need to apply for the relevant work pass provided by MOM.
The initial application fee is SGD 105 for employment passes, SGD 105 for S Passes for skilled foreign workers, and SGD 35 for work permits for semi-skilled foreign workers. Note that there may be additional charges incurred on top of the application fee.
Business Licences
If a foreign company is involved in industries or sectors that require specific licences or certifications, they must obtain them as soon as the company is incorporated. Each licence or certification will have different fees for the application process.
Payroll & CPF Contributions
A foreign company that is employing Singaporeans to work with them will need to add CPF contributions and payroll compliance costs on top of their other expenses.
Why Long-term Financial Planning is Crucial
Long-term financial planning helps companies leverage available funding for use across its diverse business activities and manage operational expenses, including ongoing costs like taxes and regulatory compliance.
Tax incentives are one such way companies can lower the effective tax rate, positioning them as a competitive, adaptive player in a saturated industry. Varied service packages provided by RFAs at affordable rates can also offer cost-effective management strategies for complex business concerns, including taxation and bookkeeping.
Keen to know more about how a reliable RFA like My Office can help your business with various corporate services? Contact us today to find out more!
