Cost of Setting Up a Company in Singapore Do You Really Know?

How Much Do You Know About the Cost of Setting Up a Company in Singapore? A Comprehensive Breakdown with Real-World Examples

As global economic integration deepens, more entrepreneurs and investors are looking overseas for broader growth opportunities. Singapore has emerged as one of the world’s most popular business destinations due to its stable environment, efficient governance, strategic location, and favorable tax policies. For many Chinese entrepreneurs, setting up a company in Singapore has become a crucial stepping stone for expanding internationally.

However, before making the decision, it is essential to understand the associated cost structure. This article will walk you through the registration process, detailed cost breakdown, influencing factors, and real-life examples to give you a clear understanding of what it truly costs to establish a company in Singapore.

1. The Basic Process of Registering a Company in Singapore

Before diving into the costs, let’s first outline the basic steps involved in registering a company in Singapore

1. Company Name Approval Submit the proposed company name to ACRA Accounting and Corporate Regulatory Authority to ensure it is unique.

2. Prepare Company Documents Includes shareholder and director identification, corporate bylaws, authorized capital, etc.

3. Appoint a Local Registered Agent By law, all foreign applicants must use a licensed local agent to complete the registration.

4. Submit Application The registered agent submits the documents to ACRA on your behalf.

5. Receive Business Certificate Upon approval, the company receives its certificate of incorporation and related documents.

The entire process typically takes only 1-3 working days, making it highly efficient.

2. Key Cost Components of Registering a Singapore Company

While the registration process is streamlined, the total expenses can vary depending on individual circumstances. Below are the most common costs

1. Registration Fees

ACRA charges a base fee of approximately SGD 300 about RMB 1,500, which includes

Name approval SGD 15

Registration fee SGD 300

2. Registered Agent Service Fee

Most foreigners opt to use a registered agent, with fees ranging from SGD 500 to SGD 1,500 depending on the service provider. Some agents also offer additional services such as bank account opening assistance or corporate secretary services.

3. Corporate Secretary Service Fee

Singapore law requires every company to appoint a qualified local corporate secretary. Annual fees typically range between SGD 500 and SGD 1,500, depending on the scope of service.

4. Registered Office Address Rental

A legal Singapore address is mandatory. Many agents provide virtual office addresses, costing between SGD 300 and SGD 800 annually.

5. Bank Account Opening Fees

Opening a local bank account may incur setup or annual maintenance fees. Banks like DBS and OCBC usually do not charge an opening fee but may require minimum deposits or average monthly balances.

6. Other Optional Services

These include tax registration, trademark filing, HR outsourcing, etc., and their costs vary based on business needs.

3. Key Factors That Influence Overall Costs

In addition to the standard fees listed above, several other factors can affect the total expense

First-time registration status Experienced agents may offer discounted rates for new clients.

Company type Private Limited Pte Ltd is the most common, but other structures like partnerships may have different cost implications.

Need for additional services Visa consulting, financial management, and compliance support can increase overall spending.

Business scale and complexity Larger operations often incur higher ongoing compliance and accounting costs.

4. Real-Life Case Study

Let’s take the example of a manufacturing client from Guangdong, China, who wanted to enter the Southeast Asian market by setting up a trading company in Singapore.

Basic Setup

Company Type Private Limited Pte Ltd

Shareholders Two Chinese individuals

Authorized Capital SGD 1 nominal value

Service Requirements Incorporation + First-year corporate secretary + Virtual office address + Bank account assistance

Total Cost Breakdown

ACRA Registration SGD 300

Agent Service Fee SGD 900

First-Year Corporate Secretary SGD 800

Virtual Office Address Year 1 SGD 500

Bank Account Assistance SGD 300

Total Estimated Cost SGD 2,800 approximately RMB 14,000

The client noted that while the initial investment was slightly higher than expected, the long-term benefits-including easier access to financing and significant tax incentives-made the move highly worthwhile.

5. Tips to Reduce Costs

1. Choose a Reputable Agent Don’t just go for the lowest price; quality and reliability matter more.

2. Opt for Bundled Packages Many agents offer comprehensive packages at better rates.

3. Simplify Company Structure Avoid unnecessary complexity to reduce future compliance costs.

4. Leverage Government Incentives Organizations like Enterprise Singapore offer subsidies and tax breaks for startups.

Conclusion

With its open and supportive business environment and robust financial system, Singapore continues to attract international businesses. For those aiming to expand globally, setting up a company in Singapore isn't just a financial decision-it's a strategic one.

By understanding the full cost structure upfront and planning your budget carefully, you can streamline the registration process, minimize risks, and lay a solid foundation for your international growth journey.