If you are wondering how much money is required when setting up a business in Singapore, you don’t have much to worry about. That is because it is relatively affordable in comparison to other global business centres, like Dubai or Hong Kong. However, the costs might vary based on factors like business structure, industry, and operational needs.
Financial Considerations When Setting Up a Business
- Business Registration Costs
The total basic registration cost is SGD 315, which includes company name reservation and company incorporation fee. The registration period will take around 1-2 days through the Accounting and Corporate Regulatory Authority (ACRA).
- Hiring a Company Secretary
Every company in Singapore must appoint a company secretary within 6 months of incorporation. This should cost you from 300 to 600 per year for corporate secretary services.
- Registered Office Address
It is also required for you to have a physical business address in Singapore. So, there are no P.O. boxes to be considered. The cost will range from SGD 10 to 50 per month for a business address service or virtual office.
- Nominee Director
A nominee director will be appointed if foreigners don’t have a local Singaporean or permanent resident director. This will cost you around SGD 1,500 to 3,000 per year.
- Opening a Corporate Bank Account
Most banks will require you to spend a minimum deposit of SGD 1,000 to 5,000. However, bank fees will vary, which provides lower rates for startups.
So, basically, a simple private limited company without extra licenses will cost around SGD 1,500 to 2,500 for the low-end. But for the high-end setup, including nominee director, office space, and additional services, you will need to spend around SGD 3,000 to 5,000.
Where to Begin Setting Up a Business in Singapore
The business-friendly environment of Singapore makes starting a business straightforward.
- Choose Your Business Structure
The private limited company is the most common and recommended structure for entrepreneurs. This offers limited liability protection, tax benefits and incentives, and credibility with clients and investors.
- Register Your Company Name
You need to ensure that the name is unique and will follow the naming guidelines of the ACRA. You can use the BizFile+ portal through this agency. This will cost around SGD 15 for the name reservation, which is valid for 120 days.
- Appoint Key Personnel
At least one director should be a Singaporean citizen, permanent resident, or an employment pass holder. A company secretary must also be appointed within 6 months of incorporation.
- Open a Bank Account
You also have to prepare documents like your certificate of incorporation and business profile. Note that some banks will offer free account setup for startups.
- Register for Taxes
The corporate tax in Singapore is 17%, but small businesses can enjoy various exemptions. However, you have to register for Goods and Services Tax if your revenue exceeds SGD 1 million. You can hire a tax advisor for guidance on claiming exemptions.
If you want to learn more about starting and managing your company in Singapore, feel free to give us a call. Our company formation agents in Singapore have already set up hundreds of foreign entrepreneurs and businesses. Allow us to discuss the basics of starting and operating your company in the country through a free 30-minute discovery call.
