Introduction
Since its establishment, Singapore has been a central point of trade and commerce in Asia, especially for Indians. The main thing is its business-friendly environment, which is what makes Singapore a great place to work. If you want to open a company in Singapore, then it is very important to know about the complete process. In this article, we will give you detailed information about the company registration cost in Singapore and other costs.
Types of companies in Singapore:
There are five types of companies that you can own in Singapore, such as:
- Sole Proprietorship: This is usually a small business owned by one person, who is primarily responsible and liable for the profits and debts of the business. It is open to Singapore citizens, permanent residents, Entrepass holders, or foreign nationals with a local resident authorized representative. An owner who is non-resident but a Singapore citizen is required to have an authorized representative in Singapore.
- Partnership: Partnership is a business which is basically owned by two or more people, and the liability of the partners is unlimited. An owner who is a Singapore citizen but not a resident must have an authorized representative in Singapore.
- Limited Partnership: A business that is fundamentally owned by two or more partners – at least one general partner and one limited partner, is known as a limited partnership. Responsibility basically depends on the status of the partnership. If the partner resides overseas, the partner must appoint a local manager who must be a resident of Singapore.
- Limited Liability Partnership: This is a business where there are at least two partners, and there is no limit on the number of partners. Registration must be completed by two partners, and a local manager is required to be appointed if the partners reside overseas.
- Company: A company can be either private or public, which primarily limits how many people can own it. The company exists as a separate legal entity separate from the personal assets of the partners and owners. At least one director must be a resident of Singapore, and if a non-Singapore citizen wishes to become a local director, they can apply for Entrepass through the Ministry of Manpower
Specific Costs for Different Business Structures
Here are the specific costs for different business structures in Singapore, which include the company registration fee Singapore:
| Types Of Business | Name application fee | Registration fee | Total |
|---|---|---|---|
| Partnership | 15 SGD | 100 SGD | 115 SGD |
| Limited Liability Partnership | 15 SGD | 100 SGD | 115 SGD |
| Company | 15 SGD | 300 SGD | 315 SGD |
| Sole Proprietorship | 15 SGD | 100 SGD | 115 SGD |
Fee for Annual Filing
Understanding the annual filing fees is crucial when considering the Singapore business setup cost:
| Types of Business | Type of Fee | Amount in SGD |
|---|---|---|
| Sole-Proprietorship | Annual renewal fee | $30 |
| Partnership | Annual renewal fee | $30 |
| Limited Liability Partnership | Annual renewal fee | $30 |
| Company | Annual filing | $60 |
| Foreign companies | Annual filing | $200 |
Professional Services and Their Costs
- Accounting Services: Accounting services basically mean the production of at least quarterly management accounts, including profit and loss, overhead analysis, balance sheets and schedule drawings, comments on performance, as well as highlighting cost savings and profit opportunities.
- Corporate Secretarial Services: A corporate secretary is responsible for ensuring that the business is in full compliance with legal requirements and that company records are accurate.
- Business Advisory Services: The main objective of this service is to provide assistance to top management in any organization in setting their strategic direction and aligning their vision with that of the organization.
| Types of Services | Fees |
|---|---|
| Accounting Services | Estimated Fees From SG$ 600 / Year |
| Corporate Secretarial Services | Estimated Fees From SG$ 350 / Year |
| Business Advisory Services | SG$ 128 to SG$ 2,032 / day |
Costs Associated with Office Space
Here is a breakdown of office space costs, an important aspect of Singapore company incorporation cost:
- Co-working Spaces: Co-working is a new, creative, and innovative workspace model that seamlessly offers flexi, fixed desks, and private office suites as per your needs. This archetype is widely popular, with coworking spaces in Singapore highly preferred by freelancers, startups, SMEs, and MNCs to work flawlessly.
- Virtual office: A virtual office is a company that basically operates as a single entity and has a physical mailing address but is not present in a specific location.
| Office Type | Cost Range |
|---|---|
| Co-working Spaces | SG$ 474 / month to SG$ 4,743 / month |
| Virtual Office Services | SG$ 88 per month to SG$ 199 per month |
| Physical Office’s Rent | SG$ 9 per sq ft to SG$ 18 per sq ft |
Licensing and Permit Fees
Licensing and permit fees are part of the company registration cost in Singapore:
- Industry-Specific Licenses: The cost of licenses in Singapore varies fundamentally depending on the nature of your business and the relevant agencies you need to apply for.
| Types of Industries | Cost of License |
|---|---|
| Food and Beverage | SG$ 195 to SG$ 2,400 per year |
| Retail | SG$ 250 to SG$ 500 per year |
| Construction | SG$ 500 to SG$ 10,000 |
Additional Costs for Foreign Entrepreneurs
Foreign entrepreneurs should consider the following costs, which contribute to the company formation in Singapore cost:
- Entrepreneur Pass: The function of this Pass is basically to provide permission to foreign entrepreneurs to start and operate a business in Singapore which is venture-backed or has innovative technologies.
- Dependant’s Pass: The Dependant Pass basically allows the spouses and children of Employment Pass holders to join them in Singapore.
- Employment Pass: The employment pass basically grants permission to foreign professionals, managers, and executives to work in Singapore.
| Types Of Pass | Costs |
|---|---|
| Entrepreneur Pass (EntrePass) |
|
| Dependant Pass | S$105 per application |
| Employment Pass | S$225 for each pass |
Bank Account Setup Costs
Setting up a bank account is part of the Singapore company incorporation fees:
Initial Deposit Requirements: If you want to open a bank account in Singapore, Singapore banks require you to deposit an initial amount of SG$1,000 - SG$3,000 to open the account. However, most banks also have a minimum in-credit balance requirement, and you will be charged a fee if your balance falls below this for any reason.
Ongoing Operational Costs
Managing operational costs is key to understanding the company registration cost in Singapore:
Payroll Fees:
| Service Description | Fee | Type |
|---|---|---|
| Monthly payroll retainer – Minimum 10 Employees | S$400* | Monthly |
| Monthly payroll retainer - from 11th employee onwards | S$20* per person | Monthly |
| IR21 (Manual and e-submission) | S$250* per person | One-time |
| IR8A pre-sealed envelope | S$3* per IR8A envelope | Per item |
| IR8S and CPF capping | S$3* per person | Per item |
| Appendix 8A (Housing benefits) | min. S$200* per person | Per item |
- Marketing and Advertising Costs: Any business can invest between SG$ 5,000 and SG$ 25,000 per month for basic to intermediate digital marketing services.
Cost-Saving Strategies
Following are some ways for companies to reduce their costs, which can impact the register company in Singapore cost:
- Choose an affordable location for your office : If virtual offices don't apply to your industry, your best option to save money is to rent an office somewhere where the rent isn't too high. Rent is usually very expensive in prime locations for offices, such as urban areas and central business districts.
- Opt for virtual offices: Nowadays, the popularity of hybrid and remote working models is generally increasing among small and large businesses. As such, virtual offices in Singapore have seen a massive rise, as they typically serve to provide cost-efficient solutions while tapping into on-demand services like meeting rooms, copy services, and more.
- Rent your equipment: When you start your company, the first thing you should consider renting is all the equipment you need to operate your business. This will basically help you reduce expenses, and you can also pay it through installments, thereby basically saving cash for other operational purposes.
Conclusion:
You can easily register any company in Singapore if you follow the necessary steps and requirements. Singapore offers many benefits to all businesses that want to reach a global level, such as strategic location, a business-friendly environment, etc. For a small business in Singapore, reducing operating costs is of utmost importance for long-term financial stability. In this article, we have told you how you can effectively manage your expenses and increase profitability, including understanding the company registration cost in Singapore
Also read:
How to Register a Company in Singapore: A Complete Guide
