How Much Capital Is Needed to Register a Company in Singapore? A Comprehensive Analysis for Informed Decision-Making

How Much Capital Is Required to Register a Company in Singapore? A Multi-Dimensional Approach to Decision-Making

In recent years, as the global business environment continues to evolve, more entrepreneurs and business owners have turned their attention to the Southeast Asian market. As one of the most dynamic and competitive business hubs in the region, Singapore has attracted significant international capital. According to data released by Enterprise Singapore, the number of newly registered businesses in the first half of 2025 increased by nearly 12% year-on-year, demonstrating strong entrepreneurial vitality.

For entrepreneurs considering setting up a company in Singapore, one of the most pressing questions is how much capital is required for company registration. This article explores the financial requirements from multiple dimensions to help you make a more rational and informed decision.

1. Minimum Capital Requirements and Practical Considerations

Legally, Singapore does not impose a minimum capital requirement for company registration. In theory, you can register a company with as little as 1 Singapore dollar SGD. However, in practice, the amount of registered capital can influence how your company is perceived by international clients, partners, and banks. It is generally recommended to set a minimum registered capital of SGD 10,000 approximately RMB 50,000, which is sufficient to cover basic operational needs and also demonstrates a certain level of corporate credibility in the early stages.

Singapore offers different types of company structures, each with its own registration procedures and fees. The most common structure is a Private Limited Company, with registration costs ranging from SGD 300 to SGD 400. These fees include company name registration, incorporation, and basic secretary services. While relatively low, this is only a small portion of the total startup capital.

2. Business Licenses and Industry Permits

Depending on the nature of the business, additional licenses or permits may be required after registration. For example, businesses in the food and beverage sector must apply for a food handling license from the Singapore Food Agency SFA, while retail businesses may need to obtain a retail license from relevant authorities. Technology companies may also need to comply with the Personal Data Protection Act PDPA.

Taking the FB industry as an example, according to 2025 media reports, the cost of applying for a food license ranges from SGD 200 to SGD 500, and applicants must meet strict hygiene standards. If the business involves import or export, additional deposits or qualifications may be required, with costs potentially reaching several thousand dollars.

3. Office Space and Operational Costs

Office rental costs in Singapore are relatively high, especially in the central business district CBD. According to a Q2 2025 report by real estate platform Colliers, the average monthly rent in the CBD is about SGD 9.5 per square foot. For a small office of around 500 square feet, the monthly rent would be approximately SGD 4,750, with annual rental costs exceeding SGD 50,000.

Startups can consider shared office spaces or virtual offices to reduce costs. Brands like JustCo and WeWork offer multiple locations across Singapore, with prices starting from SGD 300 per month, making them suitable for startups or remote teams.

4. Human Resources and Employee Salaries

Labor costs are another significant component of business operations. According to the Ministry of Manpower's 2025 salary survey, the average monthly salary for a local employee is around SGD 4,900. For technical roles such as software developers and data analysts, salaries typically range from SGD 6,000 to SGD 8,000.

For startups, initial hiring may only involve 1-2 employees. However, as the business grows, recruitment and HR management become ongoing expenses. Employers are also required to contribute to the Central Provident Fund CPF, which is typically around 17% of an employee’s salary.

5. Taxation and Compliance Costs

Singapore is known for its low tax rates and streamlined tax system. The corporate income tax rate is 17%, with the first SGD 100,000 of annual profits tax-exempt. Despite this, companies still incur compliance costs such as accounting, annual audits, and tax filings.

Hiring a professional accounting firm to handle annual financial statements and tax filing typically costs between SGD 1,500 and SGD 3,000, depending on the size and complexity of the business. Under the Companies Act, every company must appoint a local compliance secretary, whose monthly service fee ranges from SGD 200 to SGD 500.

6. Bank Accounts and Working Capital

Opening a local bank account is essential for business operations after company registration. Major local banks such as DBS, OCBC, and UOB have strict requirements for new business accounts, typically asking for documents such as the company’s constitution, certificate of incorporation, and director identification.

Some banks may require a minimum initial deposit, and it is advisable to have at least SGD 5,000 as startup capital. Additionally, companies should reserve sufficient working capital for daily operations, such as rent, salaries, and supplier payments. It is generally recommended that startups prepare at least six months’ worth of operating funds to ensure smooth operations before reaching profitability.

7. Comprehensive Budget Estimate

Based on the above breakdown, we can estimate the initial capital required to register and launch a small business in Singapore

Registration Fees ~SGD 400

Licenses and Permits ~SGD 1,000

Office Rent 6 Months ~SGD 15,000

Human Resources 2 Employees, 3 Months Salary ~SGD 30,000

Accounting and Compliance First Year ~SGD 3,000

Bank Account and Working Capital ~SGD 10,000

Total Estimated Initial Investment SGD 60,000-80,000 Approx. RMB 300,000-400,000

Please note that this is a rough estimate; actual figures may vary depending on the type of business, industry characteristics, and operational strategies.

Conclusion

Registering a company in Singapore is not merely a financial decision but a comprehensive, multi-dimensional process involving legal, tax, and human resource considerations. By thoroughly understanding these costs and planning your budget accordingly, entrepreneurs can confidently take their first step toward international expansion. With its open business environment, efficient services, and mature commercial ecosystem, Singapore continues to serve as a springboard for companies aiming to go global.