How to Calculate Legal Fees for Company Registration in Singapore? A Deep Dive into the True Composition of Each Cost

Setting Up a Company in Singapore Understanding Legal Fees for Registration

Setting up a company in Singapore is a popular choice among entrepreneurs and investors due to the country’s stable environment, transparent legal system, and efficient business climate. However, many startups lack a clear understanding of how legal fees are calculated during the company registration process, which can lead to budgeting inaccuracies. This article will analyze the structure and calculation of legal fees involved in registering a company in Singapore, based on recent industry updates, to help entrepreneurs better understand the actual costs involved.

1. Basic Process of Company Registration in Singapore

Before discussing legal fees, it’s important to briefly review the basic steps involved in registering a company in Singapore

1. Company Name Approval and Reservation Submit a company name application through the Accounting and Corporate Regulatory Authority ACRA.

2. Preparation of Registration Documents Includes the company’s constitution, shareholder and director details, and registered address.

3. Submission of Registration Application File the application online via ACRA.

4. Issuance of Certificate of Registration ACRA issues the certificate upon successful registration.

5. Opening a Corporate Bank Account Apply for a business bank account after registration.

6. Application for Relevant Licenses Depending on the business type.

Throughout this process, legal professionals can assist with document preparation, compliance, drafting shareholder agreements, and creating the company constitution.

2. Structure and Calculation of Legal Fees

Legal fees for company registration in Singapore typically consist of the following components

1. Basic Service Fee

This is the fee charged by the lawyer for providing core registration services, which may include

Company name search and reservation

Drafting the Memorandum and Articles of Association

Preparing registration documents and assisting with submission

Providing a registered address

Appointing a company secretary offered by some firms

This fee is usually fixed and ranges from SGD 500 to SGD 1,500, depending on the law firm’s size and reputation.

2. Statutory Fees

Although not part of the legal fee itself, these are often paid by the lawyer on behalf of the client and included in the total cost

ACRA Registration Fee Approximately SGD 300

Company Name Reservation SGD 50

Company Registration SGD 300

Company Seal Engraving Around SGD 50

Stamp Duty if applicable Varies depending on shareholder capital contributions

These fees are generally fixed and billed at actual cost by the law firm.

3. Additional Legal Services

Many businesses require extra legal services during registration, such as

Drafting shareholder agreements

Intellectual property protection

Trademark registration

Lease agreement review

Employment contract drafting

Compliance consultation

These services are typically billed either hourly or on a project basis, ranging from SGD 300 to SGD 2,000, depending on complexity.

4. Professional Surcharge

Some premium law firms may charge an additional fee for expert advice or long-term support. These fees vary by firm and can range from SGD 500 to SGD 2,000.

3. Key Factors Affecting Legal Fees

Several factors influence the total cost of legal services

1. Size and Reputation of the Law Firm

Larger firms typically charge more but offer more comprehensive and professional services. Smaller firms or individual lawyers may offer lower rates, but service quality can vary.

2. Complexity of Services

If the registration involves foreign investment, special licenses, or cross-border structures, the legal work becomes more complex and costly.

3. Inclusion of Ongoing Services

Some firms offer bundled packages that include registration, secretary services, and annual compliance. While initially more expensive, these packages can offer better long-term value.

4. Availability of Chinese Language Support

For Chinese entrepreneurs, choosing a firm with Mandarin-speaking legal teams can improve communication efficiency, though it may result in a slight price increase.

4. Recent Industry Trends and Price Changes

According to industry reports from late 2025 to early 2025, the legal services market in Singapore is becoming increasingly transparent and standardized. Many law firms now offer clear pricing packages with detailed fee breakdowns to attract small and medium-sized enterprises.

For example, the well-known law firm Rajah Tann Singapore has introduced a startup registration package priced at SGD 1,280, which includes basic registration, the first year of company secretary services, and one legal consultation session.

With the rise of remote work and digital services, more law firms are offering online registration, which helps reduce overhead costs and, in some cases, lowers fees.

5. How to Choose the Right Legal Service

To ensure you get the best value for your legal services

1. Compare Quotes Request detailed fee breakdowns from multiple firms to avoid hidden charges.

2. Clarify the Scope of Services Confirm whether the quote includes all necessary registration services.

3. Check Client Reviews Look for feedback on online platforms or professional networks.

4. Consider Long-Term Partnership Choose a firm that can provide ongoing legal support for your business growth.

6. Conclusion

While legal fees for company registration in Singapore may appear complex at first glance, understanding their structure and market trends enables more accurate budgeting. Choosing the right legal service not only reduces costs but also lays a solid legal foundation for future business development. For entrepreneurs planning to establish a presence in Singapore, gaining a clear understanding of these fee components will streamline the setup process and help ensure a smooth start to their business journey.