Costs of Setting Up a Company in Singapore All the Details and Expenses You Need to Know!

The True Cost of Starting a Company in Singapore Everything You Need to Know

In recent years, as the global business environment has evolved and Asia’s economic center of gravity continues to shift eastward, more entrepreneurs and investors have turned their attention to Southeast Asian markets. Among the region’s most attractive destinations is Singapore-an increasingly popular choice for setting up overseas companies due to its stable environment, efficient legal system, open economic policies, and strategic geographical location.

According to data released by Enterprise Singapore in 2025, the number of new company registrations increased by more than 12% year-on-year over the past year, with a significant rise in foreign-owned businesses. This trend not only highlights Singapore’s growing appeal in the global business landscape but also reflects the increasing willingness of international companies to use it as a regional headquarters or operational hub.

So, what does it actually cost to start a business in this highly sought-after commercial hub? This article provides a comprehensive breakdown of the major costs involved in registering and operating a company in Singapore-helping you make informed investment decisions.

I. Main Costs During Company Registration

To establish any business in Singapore, the first step is company registration, which includes several key expenses

1. Company Registration Fee

The standard online registration fee through the Accounting and Corporate Regulatory Authority ACRA is S$315 ~approximately RMB 1,600. This includes both company name approval and official registration. If the proposed company name is rejected upon initial submission, an additional S$15 will be required to reserve the name again.

2. Registered Address Fee

According to Singapore law, all registered companies must have a local registered address. Many startups opt for shared office spaces or business centers that provide such services, starting from around S$50 per month, depending on location and service level.

3. Company Secretary Service Fee

Every Singaporean company is required to appoint a company secretary who handles compliance matters and maintains corporate records. For foreign investors unfamiliar with local regulations, hiring a professional secretary service is common. Annual fees typically range between S$1,000 and S$3,000, depending on the scope and complexity of services.

4. Nominee Director Service Fee if applicable

If a company does not have a local director, it may need to engage a qualified Singapore resident to act as a nominee director. Professional firms offer this service at annual fees ranging from S$2,000 to S$5,000.

II. Bank Account Setup and Related Fees

After successfully registering your company, the next step is to open a corporate bank account. While Singapore offers a variety of reputable banks, each institution has slightly different requirements and fee structures.

Most banks require company directors to be physically present during account opening, and they typically ask for documents such as the business license, constitution, shareholder information, and other relevant materials. Opening fees generally range from S$100 to S$300, and some banks may also charge monthly or annual maintenance fees.

Due to strict anti-money laundering AML and know-your-customer KYC requirements, banks often conduct thorough reviews of account activities, which can prolong the entire process.

III. Annual Compliance and Operating Costs

Beyond initial registration, companies in Singapore are subject to ongoing annual expenses

1. Annual Filing and Audit Fees

Under the Inland Revenue Authority of Singapore IRAS, all companies must submit financial statements and tax returns annually. Small companies may qualify for simplified reporting procedures but still need basic bookkeeping. Companies with annual revenue exceeding S$500,000 or total assets above S$10 million are required to undergo independent audits. Audit fees vary based on size and complexity, typically ranging from S$1,000 to S$5,000. Additionally, there is an ACRA filing fee of approximately S$300 per year.

2. Tax Agent Fees

Although Singapore has a low-tax regime, many business owners choose to hire professional tax agents to navigate local tax laws. Annual fees for tax advisory services usually fall between S$1,000 and S$4,000.

3. Business Insurance Premiums

While not mandatory, many companies in Singapore purchase business insurance to mitigate potential risks, such as property insurance, liability coverage, and employee injury insurance. Annual premiums typically range from S$500 to S$2,000, depending on the scope and coverage amount.

4. Office Rent and Other Operational Expenses

If you plan to set up a physical office, rental costs will be a significant expense. In central areas, a small office can cost between S$2,000 and S$5,000 per month, while co-working spaces are more affordable, ranging from S$800 to S$1,500 per month. Additional costs include utilities, internet, phone lines, and office equipment.

IV. Human Resource-Related Expenses

If your company plans to hire employees in Singapore, consider the following HR-related costs

Salary Expenditure Labor costs in Singapore are relatively high, especially for skilled professionals. Entry-level salaries typically range from S$2,500 to S$4,000 per month.

Central Provident Fund CPF Contributions Employers are required to contribute approximately 17% of an employee’s salary to CPF.

Work Visa and Permit Application Fees When hiring foreign workers, companies must apply for work permits such as Employment Pass EP or S Pass, with application fees ranging from S$70 to S$100 per application.

V. Other Potential Costs

Trademark Registration To register a brand trademark, the cost is about S$341 per class.

Intellectual Property Protection Fees for patents, copyrights, and other IP protections vary depending on specific cases.

Marketing Budget Marketing costs depend on industry and channels used. It’s recommended to allocate at least S$1,000 per month for initial promotional activities.

Conclusion

Starting a company in Singapore is not without cost, but the country’s transparent and efficient business environment lays a solid foundation for long-term growth. For entrepreneurs aiming to expand into Southeast Asia, understanding and planning these expenses in advance helps control costs and improve overall operational efficiency.

Whether you're a first-time entrepreneur or an experienced business owner, Singapore is a destination worth serious consideration. With careful budgeting, selecting the right service providers, and leveraging local resources, you can confidently build and grow your business on this global stage.