Key Tips for Setting Up a Singapore Company Cost Structure Details Explained, Don’t Be Fooled!

Everything You Need to Know About Setting Up a Company in Singapore A Full Breakdown of Costs and Details - Don’t Be Misled Again!

In recent years, as global economic integration has accelerated, more and more Chinese companies and individuals have turned their attention to overseas markets. Singapore, with its stable business environment, strategic geographical location, and favorable foreign investment policies, has become one of the top choices for investors looking to establish an overseas company.

However, during the actual process, many entrepreneurs find themselves confused by the various fees and procedures involved in company registration. Worse still, some fall victim to unscrupulous agencies, ending up spending unnecessary money and wasting valuable time. This article provides a comprehensive breakdown of the real costs, procedures, and key considerations for setting up a company in Singapore, helping you avoid common pitfalls.

1. The Basic Process of Company Registration in Singapore

Before diving into the costs, let’s first understand the general registration process, which will help clarify the fee structure.

1. Company Name Approval

Submit a company name application to the Accounting and Corporate Regulatory Authority ACRA to ensure the name is available.

2. Preparation of Registration Documents

This includes personal information of directors and shareholders, registered capital, local registered address, business scope, etc.

3. Submission of Application

Submit the documents via ACRA’s online platform. Approval is typically completed within one business day.

4. Opening a Corporate Bank Account

After registration, you’ll need to open a corporate bank account either locally in Singapore or overseas.

5. Ongoing Compliance Requirements

Includes tax registration, annual filings, and tax reporting.

While the process may seem straightforward, it often involves multiple steps, especially for foreign investors unfamiliar with local regulations. This is where professional agencies can provide valuable assistance.

2. Understanding the Cost Structure of Singapore Company Registration

Many entrepreneurs are initially attracted by low upfront fees, only to later discover additional hidden costs. Understanding the cost breakdown is essential.

A. Government Fees Fixed and Transparent

These fees are mandatory and set by ACRA

Company Name Registration Fee Approximately SGD 50 about RMB 250

Company Registration Fee Approximately SGD 300 about RMB 1,500

These fees are non-refundable and non-negotiable.

B. Agency Service Fees

Most entrepreneurs opt to outsource these services. Fees vary depending on the agency’s service level and expertise

Company Registration Service Fee SGD 800-2,000 RMB 4,000-10,000

Registered Address Rental Annual fee of SGD 200-500 RMB 1,000-2,500

Corporate Secretary Service Annual fee of SGD 500-1,000 RMB 2,500-5,000

Bank Account Opening Assistance SGD 500-1,000 RMB 2,500-5,000

C. Other Miscellaneous Fees

Company Seal and Constitution Printing SGD 100-300

Tax Registration Services e.g., GST Additional fees apply if handled by an agency

In total, a standard company registration in Singapore, including basic agency services, usually ranges from RMB 3,000 to RMB 8,000, depending on the services selected and the agency’s pricing model.

3. Recent News and Policy Updates 2025

In 2025, the Monetary Authority of Singapore MAS and the Inland Revenue Authority of Singapore IRAS introduced stricter compliance requirements for foreign investors, particularly in the areas of Anti-Money Laundering AML and Know Your Customer KYC.

For example, in July 2025, IRAS announced enhanced background checks for businesses applying for Goods and Services Tax GST registration, aiming to prevent tax abuse.

Additionally, several local banks in Singapore have tightened their account-opening criteria for non-residents. For instance, DBS Bank and OCBC Bank have raised the bar, requiring more detailed business plans and proof of fund sources.

These changes mean that entrepreneurs may need to prepare more documentation and even travel to Singapore for in-person interviews to open a bank account. While these policies raise the compliance bar, they also reflect Singapore’s commitment to maintaining a transparent and sustainable business environment.

4. How to Choose a Reliable Agency

Given the complexity of Singapore company registration, most entrepreneurs choose to work with an agency. However, the market is full of varying quality. Here’s how to identify a trustworthy one

1. Check Qualifications and Reputation

Reputable agencies should have Registered Filing Agent status with ACRA and be officially registered. You can verify this via ACRA’s official website.

2. Transparent Pricing with No Hidden Fees

A quality agency will clearly list all fees in the contract and avoid unexpected charges. Be cautious of unusually low prices.

3. Local Support Services

A capable agency should offer a full range of services, including local secretary support, registered address provision, and tax filing assistance.

4. Review Case Studies and Client Feedback

Check the agency’s website, social media, or third-party platforms for client testimonials and past projects to assess their professionalism and service quality.

5. Conclusion

Setting up a company in Singapore doesn’t have to be prohibitively expensive, nor should it be viewed as a cut-rate bargain. Entrepreneurs should fully understand the cost structure, clarify their needs, and choose a legitimate, transparent, and professional agency to ensure a smooth and hassle-free process.

In today’s ever-changing global economic landscape, Singapore remains a strong financial hub in Asia. For Chinese companies and individuals seeking to expand overseas, establishing a Singapore entity is a strategic move worth considering. With rational decision-making and careful planning, you can avoid misleading offers and achieve a truly global business presence.