Cost Breakdown of Company Registration in Singapore Where Does Your Money Go?

The Cost of Registering a Company in Singapore Where Exactly Does Your Money Go?

In recent years, as the global business environment continues to evolve, more entrepreneurs and investors have turned their attention to the Southeast Asian market. As a regional financial and business hub, Singapore has become one of the top choices for international entrepreneurs setting up companies due to its stable political climate, efficient services, low tax policies, and favorable business environment.

However, before deciding to register a company in Singapore, many people naturally ask how much does it really cost to set up a company? While the registration fees may seem relatively low at first glance, there are multiple steps involved, and unexpected expenses can easily arise if you're not careful. This article will break down the real costs of registering a company in Singapore and provide clarity on where your money goes-supported by recent news and insights.

1. Basic Registration Fees Starting from a Few Hundred SGD

According to the Accounting and Corporate Regulatory Authority ACRA, the basic government fee for registering a Private Limited Company is 315 SGD approximately 1,570 RMB. This covers the reservation of the company name and the formal registration process. However, this is only the official fee.

In reality, most entrepreneurs choose to use professional agencies rather than handle the entire process themselves. These local registered agents typically offer one-stop services that include company name application, preparation of the constitution, and submission of documents. Such packages usually range from 400 to 800 SGD, depending on the expertise and service level of the provider.

If you need to register a special type of company, such as a non-profit organization or a foreign company establishing a branch in Singapore, the cost could be significantly higher.

2. Company Secretary Registered Address Annual Fixed Costs

Under Singapore law, every registered company must appoint a qualified Company Secretary who ensures compliance with regulations and timely submission of annual reports. If the founder is not eligible for this role-for example, if they are not a Singapore resident-they must hire a professional.

Currently, the annual fee for professional secretary services ranges between 500 and 2,000 SGD, depending on the scope of service. Some providers offer comprehensive support including tax filing and compliance advice, which is particularly suitable for startups.

At the same time, all Singapore companies must have a legal registered address. Residential addresses or P.O. Box numbers cannot be used. Renting a virtual office or physical space generally costs between 200 and 1,000 SGD per year-an expense that remote entrepreneurs should not overlook.

3. Bank Account Opening Operational Setup Hidden Costs Can Add Up

Although several banks in Singapore are open to opening corporate accounts for overseas clients, the process is not simple and often comes with associated fees. For example, banks like DBS and OCBC charge between 100 and 300 SGD for account opening, along with minimum deposit requirements e.g., 5,000 SGD or more.

Recently, media reports have highlighted stricter anti-money laundering checks, with some banks tightening their approval processes or even rejecting applications from overseas clients. It's advisable to prepare all necessary documents in advance or seek assistance from professional service providers, which may cost an additional few hundred SGD.

Moreover, after company formation, other operational expenses come into play-such as website development, brand registration, trademark protection, and employee hiring. For instance, applying for trademark protection starts at around 340 SGD, while hiring your first employee involves software subscriptions and social security contributions.

4. Annual Filings Tax Compliance Ongoing Costs for Legal Operation

Singapore companies are required to submit an Annual Return to ACRA and file tax returns with the Inland Revenue Authority of Singapore IRAS each year. Although ACRA charges just 30 SGD for the annual return filing, outsourcing these tasks-including financial statements preparation-to a professional accounting firm typically costs between 1,000 and 3,000 SGD annually.

According to Singapore’s latest tax guidelines issued in 2025, companies continue to enjoy tax exemption on the first 100,000 SGD of taxable income-but only if they maintain proper compliance records. Failure to do so may result in losing the tax benefit and facing penalties or audits.

5. Other Potential Expenses Don’t Forget the Unexpected

Beyond the standard costs, there are also several potential expenses that are easy to overlook

Business License Fees Certain industries like food services, healthcare, and education require specific licenses.

Translation and Notary Fees Foreign applicants must submit certified translations of Chinese/English documents.

Remote Video Conference Equipment Rental Many entrepreneurs conduct meetings online during registration, potentially requiring equipment rental.

Intellectual Property Maintenance Fees Includes patent renewals and domain name renewals.

While these costs are less frequent, they should still be factored into your budget planning.

Conclusion

The initial cost of registering a company in Singapore isn't prohibitively high. However, when considering ongoing operations and compliance needs, the total investment often exceeds expectations. For entrepreneurs eyeing the Southeast Asian market, smart budget planning and choosing the right service providers are key to controlling costs and improving efficiency.

Today, Singapore remains one of Asia’s most attractive destinations for startups. As long as you understand the full breakdown of expenses and prepare accordingly, you’ll be well on your way to launching a successful business in this green, dynamic city-state.