If you’re planning to do business in Singapore, it’s likely that you have come upon various details on how to set up a company in Singapore. Yet, it’s equally important that you know the cost associated with laying your plans.
Towards that end, below are some guides of the costs in setting up a business in Singapore.
Requirements In Setting Up A Company In Singapore
Before diving deeper into the costs, you should first be familiar with the requirements to register and incorporating Singapore company.
To incorporate a private limited company in Singapore, what you need are the following;
- one director
- one shareholder
- one secretary
- one registered business address
- and a paid-up capital of at least $1
Now that you know the requirements take note of the following costs associated with setting up your business in Singapore.
Detailed Breakdown Of Costs In Setting Up A Business In Singapore
Registration Fees
The first cost to consider in setting up company in Singapore are the fees to pay for registration, as posted on ACRA’s (Accounting And Corporate Regulatory Authority) website. The following are the standard fees:
- Business Name Approval Fee: $SGD 15
- Fee for registration: $300 SGD
That would be a total of $315 SGD to get your company incorporated with ACRA. But the list doesn’t end there. There are other operational costs involved in setting up a business in Singapore.
Compliance Costs
Another fee to be addressed is the compliance cost. The Companies Act mandates that corporate secretaries should conduct pre-screening for shareholders and directors before incorporating a business. Based on the company’s level of risk, the secretary is accountable for continuous monitoring of the company’s principal units. This is to avert financial fraud and combat money laundering.
For the usual small-sized business, you could fairly evaluate the cost of compliance to be around $200 annually. This is per business, including license fees and professional examinations.
Cost Of Professional Knowledge Or Servicing
It’s also good for business owners to note about professional fees. Like other professions, such as physicians, attorneys, or dentists, corporate secretarial charges can differ based on the provider’s conditions and qualifications.
After completing the needed extensive experience and passing professional exams in Singapore, secretaries can be affiliated with the SAICSA (Singapore Association of the Institute of Chartered Secretaries and Administrators). That means a mid-level corporate secretary with adequate experience to handle annual enforcement has an average salary of about $3,500 per month.
Chartered secretary wages will reach $5,000 – $7,000 a month for senior levels, based on the organization’s scale. Thus, assuming that each secretary will accommodate 100 clients a year, it would be fair to conclude that the expense of technical expertise amounts to approximately $500 a year.
Administrative Costs
Finally, business people should also take into account administrative costs. These are usually disbursement charges and can cost anywhere from $50 to $200. Expenses include filing annual reports, special resolutions, changing of shareholders or directors, etc. For most cases, these costs also include the typical services performed by company secretaries like providing the business’ chop and seal, which usually is between $100 and $200.
Do-It-Yourself Or Engage A Company Incorporation Service Provider?
To sum it all up, with all the costs mentioned above associated with setting up your business in Singapore, is it worth engaging the assistance of company incorporation service providers? If you’re a neophyte dipping your feet into the corporate world, play more carefully. Do not attempt to do-it-yourself on anything.
It will cost you $800-$1,000 annually to employ a professional. For that amount, you’re best off saving time and gaining peace of mind. You’ll also be prompt to follow regulatory timelines. A late filing of annual returns in Singapore will cost you penalties anywhere between $200-$500 based on how long you’re overdue. These are on top of having competent assistance in writing corporate resolutions. All these advantages greatly outweigh the cost.
Contact us at 3E Accounting Singapore to enjoy all these benefits and, more importantly, save you money.
