Singapore Company Setup Cost

Table of Contents

1. Why Singapore is a top destination for company incorporation

Singapore is consistently ranked as one of the easiest places in the world to do business. Its pro-business government policies, strong legal framework, low corporate tax rate, and reputation as a financial hub make it attractive to entrepreneurs, SMEs, and multinational corporations looking to expand into Asia. The city-state also offers strategic access to Southeast Asia’s growing markets, supported by world-class infrastructure and political stability.

Importance of understanding setup and ongoing costs

While incorporation in Singapore is straightforward, many first-time founders underestimate the full spectrum of costs. Beyond the ACRA registration fee, there are mandatory expenses such as appointing a corporate secretary, maintaining a registered address, and ensuring compliance with annual filings. For foreign entrepreneurs, additional costs like nominee director services and bank account setup also come into play. Having clarity on both initial setup costs and ongoing annual maintenance ensures smoother financial planning and prevents unexpected surprises.

2. Government & Regulatory Fees

Every company incorporated in Singapore must pay statutory fees to ACRA (Accounting and Corporate Regulatory Authority). These are government-mandated charges that apply universally, regardless of whether the business is a small startup or a multinational branch.

2.1 Company Name Reservation

Before registering a company, the proposed name must be reserved with ACRA. The process is done online via BizFile+, and once approved, the name is locked in for a fixed period. If not used within this window, the reservation lapses and a new application must be made.

2.2 Incorporation Filing

Once the name is reserved, the next step is submitting incorporation documents with ACRA. This includes company constitution, shareholder details, director appointments, and registered office information. When approved, ACRA issues a Certificate of Incorporation and assigns a Unique Entity Number (UEN), which acts as the company’s official identification.

2.3 Annual Filing Obligations

After incorporation, companies must comply with annual filing requirements. This typically includes submitting an Annual Return (AR) through BizFile+, along with company financial statements if applicable. These filings ensure that the company’s information is kept up to date in the government registry.

3. Professional Service Fees

Beyond ACRA’s statutory charges, there are professional services required to keep a Singapore company compliant. Some are mandatory by law, while others are optional but commonly needed, especially for foreign-owned businesses.

3.1 Corporate Secretary (Mandatory)

Every Singapore company must appoint a qualified corporate secretary within 6 months of incorporation.
The secretary is responsible for maintaining statutory registers, preparing annual returns, and ensuring compliance with the Companies Act.

3.2 Registered Office Address (Mandatory)

Companies must have a registered local address in Singapore (P.O. Boxes are not allowed).
This is where ACRA and IRAS send official notices. Many firms use a service provider’s commercial address if they do not lease an office.

3.3 Nominee Director Services (For Foreign Shareholders)

By law, every company must have at least one director who is ordinarily resident in Singapore (citizen, PR, or EP holder).
If foreign shareholders cannot appoint such a director, they must engage a nominee director service.
Nominee directors are not involved in daily operations but provide statutory compliance.

3.4 Local Resident Director (Alternative to Nominee)

If the foreign founder relocates and secures an Employment Pass (EP), they can act as the local resident director.
This eliminates the need for a nominee director, but comes with work pass application costs and salary requirements.

4. Bank Account & Financial Setup

Once your company is incorporated, the next step is opening a corporate bank account. This is required for receiving payments, paying suppliers, and maintaining proper accounting records. Singapore offers both traditional banks and fintech/EMI (Electronic Money Institution) solutions.

4.1 Corporate Bank Accounts with Local Banks

Major Singapore banks include DBS, OCBC, UOB, Standard Chartered, HSBC, and Citibank.
To open an account, directors and signatories often need to be physically present for KYC verification (though some banks now allow video verification for foreign clients).
Requirements typically include:
- Certificate of Incorporation & Business Profile
- Constitution of the Company
- Passport/ID of directors and shareholders
- Proof of residential address
- Business plan or invoices (for certain industries)
Typical costs:
- Initial deposit: SGD 1,000 – 3,000 depending on the bank.
- Monthly account fees: Some accounts are free; others charge SGD 10 – 30 per mont.

4.2 Fintech & EMI Alternatives

For founders who face challenges opening a traditional bank account, Singapore also supports fintech solutions such as Aspire, Airwallex, Wise Business, or other EMIs.
These accounts are easier to open remotely, integrate with e-commerce platforms, and offer multi-currency wallets.
Typical costs:
- Low or no minimum deposit
- Transaction fees apply for currency conversions and international transfers

4.3 Multi-Currency Accounts

Both banks and EMIs offer USD, EUR, GBP, and other currency accounts, which is especially useful for companies involved in global trade.
This helps reduce foreign exchange costs and makes cross-border transactions faster.

In summary, opening a corporate bank account in Singapore is relatively straightforward but foreign-owned companies may face stricter compliance checks, especially in industries considered high-risk.

5. Tax & Compliance Costs

Once your company is incorporated and operational, you must comply with Singapore’s tax and statutory reporting obligations. These are not one-off expenses — they recur annually and are critical for maintaining your company’s good standing.

5.1 Corporate Income Tax

The headline corporate income tax rate in Singapore is 17%, but startups may enjoy partial tax exemptions or full tax exemption schemes for the first three years, depending on revenue.
Tax is assessed on profits, not revenue. This means proper bookkeeping is crucial to avoid overpayment.

5.2 Goods and Services Tax (GST)

Companies with annual turnover exceeding SGD 1 million must register for GST (Singapore’s value-added tax).
GST is currently 9% (2024 onwards).
Even if your company does not cross the threshold, voluntary registration is possible — sometimes advantageous for B2B companies.

5.3 Accounting & Bookkeeping

All companies are required to maintain accurate financial records.
Many SMEs outsource bookkeeping to accounting firms on a monthly or quarterly basis.
Typical cost: USD $800 – USD $3,000 per year, depending on volume of transactions.

5.4 Annual Tax Filing with IRAS

Companies must file:
- Estimated Chargeable Income (ECI) within 3 months of financial year-end.
- Form C-S or Form C for final tax submission.
Service providers often assist with preparing and submitting these filings.

5.5 Audit Requirements

Small companies are exempt from statutory audit if they meet at least 2 out of 3 criteria:
- Revenue ≤ SGD 10 million
- Total assets ≤ SGD 10 million
- ≤ 50 employees
Companies that don’t qualify for exemption must appoint a licensed auditor.
Audit fees: Typically SGD 4,000 – 10,000 per year, depending on company size.

6. Ongoing Maintenance Costs

Setting up a company in Singapore is only the first step. To stay compliant and avoid penalties, businesses must budget for annual maintenance costs. These cover the renewal of statutory services and mandatory government filings.

6.1 Corporate Secretary Renewal

The company secretary ensures compliance with the Companies Act by maintaining registers, preparing resolutions, and filing annual returns.

6.2 Registered Office Address Renewal

Companies must maintain a valid local address where government correspondence can be delivered.

6.3 Nominee Director Renewal

For foreign-owned businesses, the nominee director arrangement must be renewed each year.

6.4 Annual Return Filing (ACRA)

Companies must file their Annual Return (AR) with the Registry every year, within prescribed deadlines.

6.5 Tax Filing (IRAS)

Beyond ACRA filings, annual tax filing with IRAS is mandatory.
Cost depends on complexity of accounts.

7. Hidden & Optional Costs

While Singapore has a transparent incorporation framework, there are additional costs that may arise depending on your company’s structure, industry, and long-term goals. These are not mandatory for all companies, but they are common enough to factor into your planning.

7.1 Work Pass Applications

If a foreign founder or key staff member wants to relocate to Singapore, they need an appropriate visa such as an Employment Pass (EP) or Entrepreneur Pass (EntrePass).
Application involves government fees, and many service providers charge an additional processing fee.

7.2 Legal Documentation

Although a standard company constitution is provided during incorporation, some companies require customized documents:
- Shareholders’ Agreements
- Non-disclosure Agreements (NDAs)
- Employment Contracts
Drafting these with a law firm incurs additional legal fees.

7.3 Sector-Specific Licenses

Some industries require special permits before operations can begin. Examples include:
- Food & Beverage (NEA License)
- Finance/Fintech (MAS License)
- Employment Agencies (MOM License)
Application and renewal costs vary depending on the license.

7.4 Mail Forwarding & Document Handling

For companies using a service provider’s registered address, additional fees may apply for mail scanning, forwarding, or courier services.

7.5 Compliance Add-Ons

Companies dealing with international clients may need Enhanced KYC (Know-Your-Customer) processes, requiring notarization or apostille of documents.
Costs can include certification fees, courier charges, or government authentication fees.

8. Comparison: Singapore vs Other Jurisdictions

Entrepreneurs often weigh Singapore against other business-friendly jurisdictions. While some offshore destinations may offer lower setup costs, Singapore stands out for its credibility, strong legal framework, and international reputation.

8.1 Singapore vs. Hong Kong

Similarities: Both are global financial hubs with low corporate tax rates and no capital gains tax.
Differences: Singapore offers stronger political stability and better access to ASEAN markets, while Hong Kong appeals more to businesses targeting Mainland China.
Cost Angle: Setup costs are comparable, though Hong Kong banks have become stricter in account openings post-2020.

8.2 Singapore vs. BVI / Cayman (Offshore Jurisdictions)

Offshore Advantage: BVI and Cayman offer faster incorporation and lower setup/maintenance fees. They are popular for holding companies and asset protection.
Singapore Advantage: Unlike offshore jurisdictions, Singapore enjoys high credibility with banks, investors, and international authorities — critical if you plan to operate an active trading or service business.
Cost Angle: Offshore jurisdictions may be cheaper upfront, but Singapore provides long-term benefits in tax treaties, banking access, and business reputation.

8.3 Singapore vs. Mauritius / Nevis

Mauritius and Nevis are often used for tax structuring in Africa or asset holding. They have lower running costs and lighter compliance requirements.
Singapore, however, provides better double-tax treaties, easier investor recognition, and a business-friendly ecosystem.
Cost-wise, Singapore is higher, but compliance standards are stricter — which appeals to serious investors and partners.

9. Cost Breakdown Example (Case Studies)

While the actual cost of incorporating in Singapore varies depending on your company’s structure and needs, here are three common scenarios that illustrate how expenses add up in practice:

Scenario 1: Local Founder, No Nominee Director

Local Singapore resident acts as director.
Requires only corporate secretary and registered office services.
Bank account can be opened more smoothly since the founder is locally based.
Overall profile: Lowest-cost setup and ongoing maintenance.

Scenario 2: Foreign Founder, With Nominee Director

100% foreign ownership, no local director available.
Must engage a nominee director service.
Requires registered office address and corporate secretary.
Opening a bank account may involve stricter compliance checks; sometimes fintech options are chosen instead.
Overall profile: Medium-cost setup, higher recurring fees due to nominee director services.

Scenario 3: Growing SME, Audit Obligations Apply

Company expands quickly and crosses audit exemption thresholds.
Needs annual bookkeeping, tax filings, and audit services.
May also register for GST if revenue exceeds SGD 1 million.
Overall profile: Higher annual compliance costs, but this also signals business maturity and investor credibility.

10. How WorldwideFellow Can Help

Setting up a company in Singapore can feel overwhelming when you factor in regulatory requirements, hidden costs, and ongoing compliance. That’s where WorldwideFellow makes the process seamless.

Transparent, All-Inclusive Fee Packages

Instead of piecing together services from multiple providers, Worldwide Fellow offers clear, upfront packages that cover everything you need — from incorporation and corporate secretary to nominee director, registered address, and compliance filings. No hidden costs, no surprises.

Step-by-Step Incorporation Guidance

Our team guides you through every stage of the incorporation process:

Name Reservation
Document Preparation & Filing
Corporate Secretary Appointment
Nominee Director / Resident Director Options
Bank Account Assistance with local banks and fintechs

Compliance & Annual Maintenance

We don’t just help you incorporate — we ensure your company remains compliant year after year with:

Annual return filings
Tax submissions to IRAS
Renewal of secretarial and nominee services
Reminders for important compliance deadlines

Tailored Solutions for Foreign Entrepreneurs

For overseas founders, we provide reliable nominee director services and banking support so you can operate in Singapore without needing to relocate immediately.

Why Choose WorldwideFellow?

Transparent pricing with no hidden fees
End-to-end support from incorporation to compliance
Expertise across both local and international company structures
Fast turnaround times and responsive support team

Conclusion

Singapore remains one of the most attractive destinations in the world for business incorporation. Its pro-business policies, strong legal framework, competitive tax regime, and reputation as a trusted financial hub make it a natural choice for entrepreneurs, SMEs, and global companies alike.

However, while setting up a company here is straightforward, it’s important to plan for all associated costs — from government filing fees and mandatory professional services to ongoing compliance, banking, and optional extras such as work passes or sector-specific licenses. These expenses add up over time, and overlooking them can cause financial strain or even compliance issues.

By understanding the full picture of setup and maintenance costs, you can make better business decisions, budget accurately, and focus on growing your company rather than being surprised by hidden obligations.

At WorldwideFellow, we specialize in providing transparent, end-to-end incorporation services — ensuring no hidden charges and guiding you every step of the way, from incorporation to annual compliance. Whether you’re a local entrepreneur or an overseas founder, we help you launch and maintain your Singapore company with confidence.

👉 Ready to start your Singapore business journey? Get in touch with Worldwide Fellow today for a tailored incorporation package.

Frequently Asked Questions

Can I register a company in Singapore without a corporate secretary?

No. Under the Companies Act, every company must appoint a qualified corporate secretary within 6 months of incorporation. The secretary ensures compliance with statutory obligations and maintains official records.

What is the minimum paid-up capital required?

The minimum paid-up capital is SGD 1. However, in practice, many businesses choose to start with a higher capital to reflect financial credibility. Certain industries (e.g., finance, recruitment agencies) may require higher capital amounts to qualify for licensing.