Singapore has emerged as an economic powerhouse over the last few decades. The rise to become one of the most powerful economies in Asia has been fuelled by solid economic policies, political stability, leveraging new technology, favorable tax regime, and support for local and foreign investment. Today, the country ranks top in the World Bank’s Doing Business Index.
Registering a business in the country is a straightforward process, but the first thing that comes to mind is always the cost. The Accounting and Corporate Regulatory Authority (ACCRA) governs the company incorporation in Singapore as per the Companies Act, Chapter 50.
In this post, learn more about the company incorporation process and the fees required.
Overview of Company Incorporation in Singapore:
Company incorporation is an online process in Singapore for both local and foreign entrepreneurs. The first step is to choose the type of business structure you want. The Private Limited Company (Pte Ltd) business entity has more benefits over Sole Proprietorship.
With a private limited company, you’re not liable for company debts, and your company has better access to credit facilities from local and international financial institutions. Profits are taxed at corporate tax rates and you also enjoy tax incentives and exemptions. The Company is also perpetual and ownership is transferable among shareholders.
Some requirements to incorporate your company include:
- A minimum of 1 and a maximum of 50 shareholders (individuals or corporate entities
- Minimum paid-up capital of S$1
- At least one Singapore-resident director (a Singapore citizen, a Singapore permanent resident, or an Employment Pass holder)
- A qualified company secretary within 6 months of incorporation
- A local registered address in Singapore (The address cannot be a PO box)
- An approved company name
The first step is to get the company name approved through the ACRA and this is a simple procedure if you pick a unique business name. However, if some company names require further review and approvals by respective government authorities if they include words such as law, finance, media, and bank.
You can reserve the name for up to 120 days but if you don’t incorporate the company, another person can use the same name.
The documents required include a company constitution, signed consent for each director, signed consent by the company secretary, brief description of your company activities, and identification and residential address details of directors and shareholders. For individual shareholders, also provide Passport Copy or NRIC.
Fees in Singapore Company Incorporation:
The company registration process is fully online through the BizFile+ portal owned by ACRA. The online process lowers the fees for business owners.
The ACRA’s Singapore company incorporation fees are:
- Name application-s$15 fee
- Registration fees$300
Total administrative fees of S$315.
Other ACRA fees that might apply include:
- Annual filing-$60
- Conversion within Company types-$40
- Lodgment of Notice of Error (NOE)-$60
- Registration of particulars relating to charges-$60
- Registration for amalgamation-$400
While the registration process in the country is well-detailed, you’ll need professional assistance to get it right. Under Singapore law, the self-registration of Singapore companies by foreign individuals or entities is not allowed.
For a smooth business registration process, consider a reliable company incorporation service in the country. The most established services have the expertise on incorporation laws and the registration process.
The cost of using the registration companies varies depending on the services you want. The firms in Singapore provide incorporation packages ranging between S$500 and S$1,500.
Here are some of company incorporation fees in Singapore you expect when working with the service providers:
- Provision of Registered Office Address-S$110 to S$420 for 1 year
- Nominee Directorship services-S$1,800 to S$2,000 for 1 year
- Company Secretary services-S$280 to S$900 for 1 year
- Application for Employment Pass (EP)-S$800
- Striking-off company – from S$600
You might also need accounting services from a professional accountant in the country. Here’s an estimate of the charges:
- Accounting system setup-Starting from S$350 to S$400 (one-time fee
- Book-keeping- Starting from S$250 to S$2,500 per month
- Compilation of financial statements- Starting from S$400 onwards
- Corporate tax filing (FORM C) – From S$350
- GST Application – From S$300
Your business might not need all these services and you can get a tailored incorporation package for the process. Always consult widely before you identify the best company to partner with. Read reviews and testimonials and confirm all the charges before you sign any agreement.
Whether you’re a local or foreign investor, it’s advisable to work with a professional company incorporation service to expedite the process. You get a dedicated professional to handle your business registration process.
The experts understand all the regulations, documents, and other requirements you need to complete the process. If you need extra services, the best company incorporation company will have them in-house. You can request for a nominee director, registered office, company secretary, book-keeping, or any other business solutions.
Using an incorporation company helps avoid legal disputes that are common with new foreign companies in the country. Services such as nominee directorship are well defined in the agreement and there’s a reduced risk of legal issues.
Singapore is one of the most popular investment destinations in the world today. The favorable business environment can help your new business to thrive. With these tips on the company registration process and fees, you’re ready to start the process.