How Much Does Annual Compliance for a Singapore Offshore Company Cost? Hidden Fees and Key Tips You Should Know

Lately, a lot of friends involved in foreign trade, cross-border e-commerce, or overseas investments have been talking about one question how much does it actually cost to renew your offshore company registration annually in Singapore? On the surface, annual renewal seems simple-just pay a fee and complete some paperwork. But in practice, many people are shocked to find their bills far exceed expectations. So what hidden costs are lurking behind this process? And what key details do most people overlook?

Let’s start with a real-life example. A Shenzhen-based Amazon seller registered an offshore company in Singapore three years ago through an agent, mainly to receive international payments and optimize tax structure. When he went through his first annual renewal last year, he was told the total cost would be nearly 8,000 RMB-while during registration, the agent had casually mentioned “just a few hundred yuan per year.” Upon closer inspection, he realized the charge included accounting services, audit reports, corporate secretarial fees, government levies, and more-some of which were mandatory.

Once this story spread across industry circles, others began re-evaluating the true maintenance cost of their offshore entities.

So what exactly goes into the annual compliance for a Singapore-registered offshore company-and what pitfalls should you avoid?

First, here's something crucial to understand Singapore imposes strict regulatory requirements on all locally incorporated companies, regardless of whether they operate domestically or offshore. Even if your company has no active business, you’re still legally required to file an Annual Return with the Accounting and Corporate Regulatory Authority ACRA, hold shareholder meetings, and prepare financial statements every year. These aren’t optional-they’re legal obligations.

1. Government Filing Fees

This is the most basic and transparent cost the annual return filing fee paid to ACRA. Currently, it’s around 300 SGD about 1,600 RMB. This amount is fixed and standardized-no surprises here.

2. Company Secretary Service Fee

Under Singapore law, every company must appoint a local corporate secretary. Most small and medium-sized enterprises outsource this role to professional service providers. The annual market rate typically ranges from 1,500 to 3,000 RMB. Don’t underestimate this role-it ensures your documents comply with regulations, reminds you of deadlines, helps organize board meetings, and keeps your company in good standing. If this service lapses, your company could be flagged as non-compliant, potentially affecting your bank account operations.

3. Accounting and Audit Services - Where Hidden Costs Multiply

This is where things get tricky-and expensive. Many clients assume that zero income means “no need for bookkeeping,” but that’s not true. Even if there’s no business activity, you still need simplified financial statements signed by directors. And if there’s any movement-like bank interest or occasional transfers-you may need a formal audit report.

Here’s the catch if your company meets any of the following criteria-annual revenue over 500,000 SGD, total assets exceeding 250,000 SGD, or more than 10 employees-you’re legally required to engage a licensed auditor. And audits can easily cost several thousand RMB or more.

The problem? Some agents fail to clearly explain these thresholds when setting up the company. By the time clients reach annual renewal, they’re blindsided by unexpected charges. Recently, a Guangzhou-based company made headlines after failing to submit its audit report on time, resulting in fines and disruption to its overseas payment accounts. Unfortunately, cases like this happen more often than you’d think.

4. Registered Office Address Service

Singapore requires every company to have a local registered address. Since most offshore companies don’t have physical offices there, they rent virtual office addresses. This service is usually bundled with secretarial packages at around 1,000 RMB per year. However, if the address is used to receive mail or verify bank accounts, additional fees may apply.

5. Bank Account Maintenance Fees

While not part of the official annual review, this is still relevant. Many businesses link their Singapore entity to local bank accounts e.g., DBS, OCBC, which come with annual management fees ranging from a few hundred to over a thousand RMB. More importantly, banks are tightening scrutiny on “substance” - meaning proof of real business operations. Accounts with little activity or irregular transaction patterns risk being frozen or closed.

In recent months, numerous China-linked companies in Singapore have received compliance inquiries from banks demanding contracts, invoices, and other supporting documents. Ignoring these requests can lead to serious consequences.

So how can you avoid these hidden expenses? Here are a few practical tips

- Choose Transparent Service Providers Don’t go for the cheapest setup deal. Ask clearly what’s included in the annual renewal package and whether there are hidden charges. Reputable agencies will give you a detailed breakdown-not just a vague “all-inclusive” price.

- Check Your Company Status Regularly You can use ACRA’s free online portal to confirm your company’s status, check for overdue filings, and stay ahead of deadlines. Start preparing renewal documents at least two months in advance to avoid rush fees.

- Plan Your Business Scale Wisely If you're only handling small cross-border receipts, consider keeping your turnover below the audit threshold. Use simplified accounting-but make sure everything remains genuine and compliant. Never split transactions artificially to dodge regulations.

- Keep Complete Records Even if your company isn’t active, keep records such as bank statements, director resolutions, and meeting minutes. These aren’t just needed for annual compliance-they’re essential when responding to bank or tax authority checks.

At the end of the day, the appeal of a Singapore offshore company lies in its strong legal system, solid reputation, and financial convenience. But these advantages only work if you follow the rules. Annual renewal isn’t just a formality-it’s a test of your ongoing compliance discipline.

Spending smart now can save you from much bigger headaches later. More and more businesses are realizing that instead of chasing the cheapest service, they need the most reliable partner. Because in cross-border business, one compliance mistake could cost far more than years’ worth of annual fees combined.