Singapore is one of the most attractive destinations for entrepreneurs and businesses looking to incorporate due to its stable economy, favorable tax policies, and strategic location in Asia. Whether you are starting a new business or expanding your operations internationally, setting up a company in Singapore can offer many benefits. However, before you begin, it’s important to understand the costs involved in incorporating a company in Singapore.

In this blog post, we’ll break down the various costs associated with company incorporation in Singapore, including government fees, professional services, and ongoing expenses that you should consider when planning your budget.

1. Government Fees for Incorporating a Company in Singapore

The Singaporean government has made the process of incorporating a company relatively straightforward, and the fees involved are quite reasonable compared to other global business hubs. Here are the main government-related costs you’ll need to account for when incorporating:

• Company Name Reservation Fee: The first step in incorporating a company in Singapore is reserving a unique company name. The fee for reserving a company name is typically SGD 15 (approximately USD 11). The name reservation is valid for 60 days, and this fee is non-refundable.
• Incorporation Fee: The actual fee for incorporating a company in Singapore depends on the type of company you are incorporating. The most common type for foreign entrepreneurs is a Private Limited Company (Pte Ltd), and the government fee for this is SGD 300 (approximately USD 225). This is a one-time fee payable upon submission of the incorporation documents.
• Business Profile Fee: After incorporation, you can request an official business profile from the Accounting and Corporate Regulatory Authority (ACRA). This document is often needed for various business transactions. The fee for obtaining the business profile is typically around SGD 20 (approximately USD 15).

2. Professional Service Fees

While the government fees are straightforward, many entrepreneurs opt to work with a professional services firm to handle the incorporation process smoothly. These services typically include name reservation, document filing, compliance, and other regulatory requirements.

• Incorporation Service Provider Fees: If you choose to work with a corporate service provider, the fees for incorporation services generally range from SGD 500 to SGD 1,500 (approximately USD 375 to USD 1,125), depending on the complexity of your business and the services provided. Some service providers offer package deals that include the following:

1. Company name reservation
2. Preparation of incorporation documents
3. Filing with ACRA
4. Provision of a registered office address
5. Assistance with the opening of a corporate bank account
6. ACRA and tax registration

• Company Secretary Fees: Singapore law requires that every company appoint a company secretary within six months of incorporation. The fee for company secretarial services typically ranges from SGD 300 to SGD 1,000 (approximately USD 225 to USD 750) per year, depending on the level of service. A company secretary ensures compliance with local regulations, prepares annual filings, and maintains corporate governance.
• Registered Office Address Fees: Singapore companies are required to have a local registered office address. If you don’t have a physical address, many service providers offer a registered office address for a fee. This typically costs between SGD 200 to SGD 600 (approximately USD 150 to USD 450) per year.

3. Costs of Opening a Corporate Bank Account

Once your company is incorporated, you'll need to open a corporate bank account in Singapore. While there is no fee for opening a corporate account, some banks may charge monthly maintenance fees or transaction fees based on your business activity. These fees can vary depending on the bank you choose.

• Initial Deposit Requirements: Some banks require an initial deposit to open a corporate account, which can range from SGD 1 to SGD 1,000 (approximately USD 1 to USD 750), depending on the bank.
• Monthly Maintenance Fees: Banks may charge monthly maintenance fees for your corporate account. These fees generally range from SGD 10 to SGD 50 (approximately USD 7 to USD 37) per month, depending on the bank and the type of account.

4. Additional Costs to Consider

While the basic costs of incorporation are relatively low, there are a few other costs that you should take into account when planning your budget:

• Licensing and Permits: Depending on the type of business you are setting up, you may need to apply for specific licenses or permits. The cost of licensing varies widely based on the industry. For example, businesses in regulated sectors like finance, healthcare, and food services may incur higher costs for licensing.
• Tax Filing and Accounting Fees: All businesses in Singapore must file an annual tax return with the Inland Revenue Authority of Singapore (IRAS). You may need to hire an accountant or accounting firm to help with tax filings and financial statements. Accounting and bookkeeping fees typically range from SGD 500 to SGD 3,000 (approximately USD 375 to USD 2,250) per year, depending on the complexity of your business.
• Ongoing Compliance Costs: Singapore has a strong regulatory framework, and businesses are required to comply with certain reporting obligations, including annual general meetings (AGMs) and filing annual returns with ACRA. These ongoing compliance costs typically range from SGD 500 to SGD 1,500 (approximately USD 375 to USD 1,125) per year, depending on the size and complexity of the business.

5. Total Cost Breakdown

Incorporating a company in Singapore is generally an affordable process, with initial costs ranging from SGD 1,000 to SGD 3,000 (approximately USD 750 to USD 2,250), depending on the services you choose. Here’s a breakdown of the typical costs:

• Company Name Reservation: SGD 15 (USD 11)
• Incorporation Fee: SGD 300 (USD 225)
• Business Profile Fee: SGD 20 (USD 15)
• Incorporation Service Provider Fees: SGD 500 to SGD 1,500 (USD 375 to USD 1,125)
• Company Secretary Fees: SGD 300 to SGD 1,000 (USD 225 to USD 750)
• Registered Office Address Fees: SGD 200 to SGD 600 (USD 150 to USD 450)
• Corporate Bank Account: Varies by bank

Conclusion

Incorporating a company in Singapore is relatively affordable compared to other global business hubs, with initial costs ranging from SGD 1,000 to SGD 3,000 (approximately USD 750 to USD 2,250) depending on the services you choose. The costs involved are manageable, and the business-friendly environment makes it an attractive destination for entrepreneurs.

By understanding the full range of costs involved, you can budget appropriately and plan your next steps confidently. Whether you are a first-time entrepreneur or an experienced business owner, Singapore offers a streamlined process for incorporating and managing your business, making it a strong foundation for global growth.