How Much Does It Cost to Register a Company in Singapore? A Guide to Fees and Hidden Costs

How High Are the Costs of Company Registration in Singapore? A Comprehensive Breakdown of Fees and Hidden Expenses

In recent years, as the global business environment continues to evolve, more entrepreneurs and small-to-medium enterprises SMEs have turned their attention to Singapore-a country renowned for its efficiency and transparency. As one of Asia’s most competitive business hubs, Singapore attracts a large number of international investors due to its stable political climate, robust legal framework, and favorable tax policies. However, many individuals harbor misconceptions or incomplete information regarding the costs involved in company registration. This article aims to provide a detailed breakdown of the actual costs associated with setting up a company in Singapore, helping aspiring entrepreneurs better understand the full financial picture and identify potential hidden expenses.

1. Basic Registration Fees Government Fees and Agent Charges

The fundamental cost of registering a Private Limited Company in Singapore consists mainly of two components government fees and service charges from local registration agents.

According to the Accounting and Corporate Regulatory Authority ACRA, the fee for reserving a company name is SGD 15, while the official company registration fee is SGD 300. These fees are fixed regardless of company size. If the business operates in a regulated industry such as finance or healthcare, additional licensing fees must be paid to the respective authorities-these can vary significantly and tend to be much higher.

Most foreign investors opt to use local agency services to facilitate the setup process. These agencies typically offer comprehensive solutions including company registration, registered address provision, and corporate secretary services. Market rates for basic registration packages range between SGD 800 and SGD 2,000, depending on the agent's experience and the scope of services provided.

2. Hidden Costs Resident Secretary, Registered Address, and Annual Compliance

While the initial direct costs may seem relatively low, there are several recurring and often overlooked hidden expenses that significantly impact long-term operational costs.

Firstly, Singapore law requires every company to appoint a Resident Secretary. For companies without a local employee qualified for this role, hiring a professional secretary service becomes necessary, with annual fees ranging from SGD 600 to SGD 1,500. This is not only a compliance requirement but also crucial for maintaining proper documentation and meeting minutes.

Secondly, a valid local registered address is mandatory during incorporation. Many startups choose virtual office addresses, which start at around SGD 50 per month. While this seems affordable initially, it adds up over time.

Moreover, annual compliance obligations generate ongoing expenses. Companies in Singapore are required to submit audited financial statements unless exempt, file annual returns, and comply with tax reporting requirements. Even for a small, zero-revenue company, these maintenance costs are substantial. For example, annual accounting fees typically range from SGD 1,500 to SGD 4,000, while audit fees-depending on business complexity-can exceed SGD 2,000 annually.

3. The Soft Costs Behind Tax Incentives

Singapore is well known for its attractive tax regime, including a flat corporate income tax rate of 17% and tax exemptions for the first SGD 100,000 of annual profits. However, taking advantage of these benefits often comes with increased compliance burdens.

For instance, applying for certain tax incentives may require submitting extensive documentation, including detailed financial reports and business plans. This may result in additional administrative work or consulting fees. To meet the scrutiny standards of the Inland Revenue Authority of Singapore IRAS, companies might need to engage specialized tax consultants or accountants-further increasing operating expenses. Although the nominal tax burden is low, the soft costs related to compliance and advisory services should not be underestimated.

4. Recent Trends and Market Developments

According to the latest data released by Enterprise Singapore in 2025, new company registrations grew by approximately 12% year-on-year, with technology and consulting firms leading the surge. At the same time, competition among registration agents has intensified, with some offering promotional packages as low as SGD 99 for quick company setup.

However, these seemingly attractive offers often come with hidden costs. Some providers advertise ultra-low prices for the first year only, after which service fees increase sharply. Others bundle essential services with premium add-ons, inflating the total cost beyond expectations. This trend serves as a reminder that when selecting a registration agent, investors should look beyond the headline price and carefully review contract terms to evaluate long-term service costs.

5. How to Effectively Manage Setup and Operational Costs

For budget-conscious startups aiming to establish a presence in Singapore without being overwhelmed by costs, the following strategies can help

1. Choose the Right Service Provider Don’t focus solely on price; consider overall service quality, reputation, and post-registration support.

2. Leverage Government Support Programs Startups can apply for grants such as Startup SG to ease initial financial pressure.

3. Plan Financial and Compliance Needs Proactively Early tax planning and compliance preparation can prevent penalties and unnecessary expenditures.

4. Optimize Organizational Structure Begin with a lean team and gradually expand or outsource functions as the business grows.

Conclusion

While the direct costs of company registration in Singapore are relatively modest, the real challenge lies in managing ongoing compliance and hidden expenses. A thorough understanding of all potential costs enables entrepreneurs to make informed, sustainable decisions. For businesses targeting Southeast Asia, Singapore remains an attractive investment destination-but success depends on accurate cost forecasting and strategic long-term planning.