Cost to Start a Company in Singapore A Guide to Fees Hidden Costs

How Much Does It Cost to Start a Company in Singapore?

In today's globalized economy, more and more entrepreneurs and small-to-medium business owners are turning their attention to overseas markets. As one of the most competitive business hubs in Asia, Singapore attracts a large number of international investors due to its efficient services, strategic location, stable financial environment, and low tax policies.

So, how much does it really cost to start a company in Singapore? This article will provide a comprehensive breakdown of the costs involved - from registration fees and operational expenses to hidden costs.

1. Basic Company Registration Fees

The most common choice for foreign investors is to register a Private Limited Company. According to the Accounting and Corporate Regulatory Authority ACRA, the registration process consists of two main steps name approval and formal company registration.

Name Approval Fee S$15 approximately RMB 80 is required when submitting a company name application.

Company Registration Fee The official fee for company registration is S$300 around RMB 1,600.

If you use a professional agency to handle the registration, additional service fees ranging from S$500 to S$1,500 may apply. Moreover, if you need to appoint a local resident as your company secretary a legal requirement, annual secretarial service fees typically range from S$1,000 to S$3,000 per year.

2. Business Licenses and Industry Permits

Certain industries such as food beverage, retail, education, and healthcare require specific licenses or permits

Food-related businesses A Food Business License must be obtained from the Singapore Food Agency SFA, starting at S$247.

Education training institutions If offering non-degree courses, registration with the Committee for Private Education CPE and payment of annual fees may be necessary.

These licenses often involve not only initial application fees but also recurring costs for inspections or renewals.

3. Office Space and Rental Costs

Land in Singapore is scarce and expensive, making office rent a significant expense for startups.

According to data from late 2025, the average monthly rental rate in Singapore’s Central Business District CBD is around S$9.50 per square foot. A 500-square-foot office could cost over S$4,750 per month. Shared workspaces offer a more affordable alternative, starting from approximately S$800 per month.

Additional ongoing costs include utilities, internet, and maintenance fees.

4. Human Resource Costs

Labor is another major expense when setting up a business in Singapore. As of the end of 2025, the average monthly salary for a local employee is about S$4,800.

For foreign employees

Work permit e.g., Employment Pass application fees and employer sponsorship responsibilities must be considered.

Employers are also required to contribute to the Central Provident Fund CPF, usually around 17% of the employee's salary, depending on citizenship or permanent residency status.

5. Tax Advisory and Legal Services

To ensure compliance, many companies hire accounting firms or law firms for financial, tax, and legal advisory services during the early stages.

Annual audit and tax filing services generally cost between S$2,000 and S$5,000.

Legal consulting is usually billed hourly, ranging from S$200 to S$500 per hour, depending on the complexity and lawyer's expertise.

6. Hidden Costs That Cannot Be Ignored

Beyond the obvious expenses, there are several hidden costs that entrepreneurs often overlook

1. Time Cost Although the registration process is efficient, preparing documents, waiting for approvals, and opening bank accounts can consume considerable time and effort.

2. Cultural Adaptation Cost For foreign entrepreneurs, understanding local business practices, overcoming language barriers, and managing cross-cultural teams can affect early-stage development.

3. Compliance Risk Cost Singapore has strict regulations. Violations of labor laws, tax codes, or corporate governance rules may result in fines or even criminal liability. Companies must invest in compliance training and systems.

7. Real-Life Example

Take the example of a Chinese entrepreneur who set up a tech startup in Singapore in 2025. Here’s an estimate of the first-year total expenditure

Registration Fees ~S$1,000

Co-working Office Rent ~S$9,600/year

Employee Salary 1 local staff ~S$57,600/year

Accounting Audit Services ~S$3,000

Legal Consulting ~S$2,000

Licenses and Administrative Fees ~S$1,000

Miscellaneous Expenses ~S$2,000

Total Estimated Cost S$76,200 approximately RMB 400,000

This is a conservative estimate. Actual costs vary depending on the nature, size, and industry of the business.

Conclusion

Starting a business in Singapore is neither as cheap as some advertisements suggest nor prohibitively expensive. It requires careful planning and a comprehensive understanding of both upfront and ongoing costs. For entrepreneurs eyeing Southeast Asia, Singapore remains a strong launching pad - but success depends on thorough budgeting and market research before taking action.