Costs of Company Incorporation in Singapore
Singapore is a country brimming with opportunities when it comes to the overall development of an entrepreneur or his or her business. There are various beneficial policies that work in favor of a company in Singapore. Hence, several business professionals migrate to Singapore to start off their business venture, whether it is establishing a parent company or setting up a subsidiary. When it comes to incorporating a company in Singapore, there are certain costs of company incorporation in Singapore that have to be taken into consideration to ensure that you do not go out of budget. Singapore has flexible policies when it comes to levying annual taxes, but the initial stage of setting up a company comes with a price on different levels. This article will guide you through the factors and costs for company incorporation in Singapore for efficient business operation.
What Are the Costs of Company Incorporation in Singapore?
What Are the General Factors to Consider While Paying for Company Incorporation?
Incorporating your new company in Singapore is an easy task. It involves a few costs that need to be considered at every step. The below-mentioned factors need to be weighed against one another to help you form a budget and invest in your business accordingly:
- Appointment of Directors: In order to incorporate your company in Singapore, you need to appoint at least one director who is a resident of Singapore or a permanent citizen. If you are a non-Singaporean resident willing to expand in the country, a nominee could be engaged on your behalf who is an employment pass holder, or you could also hire some staff in Singapore according to your needs. This calls for some investment on your side, per staff you hire.
- Company Secretary: You are required to appoint a company secretary within a span of six months since your company’s incorporation in Singapore, as specified under Section 171 of the Singapore Companies Act. The secretary has to be a resident of the country or a permanent citizen. If you or your partner is a resident of Singapore, there would be no costs for hiring. If you are a foreign national, the cost would depend upon the requirement of your company and subsequently the industry.
- Registered Address: A local Singapore address is needed as the company’s registered address. If you are a foreign national, a local Singaporean address will be required to establish a company in Singapore which can be fulfilled by utilizing the local address of the company director or secretary, on behalf of the parent company or the location of the foreign company’s subsidiary that exists in Singapore. A nominal amount may or may not be charged.
- Paid-Up Capital: You need to indulge in a minimum investment to establish your company in Singapore. It can be a paid-up capital or a shared one, with a fee as low as S$1. It can be increased with ease in the future.
What Are the Upfront Costs to Be Considered While Incorporating Your Company in Singapore?
The costs for incorporating include two basic criteria:
- Name Approval Fee: You need to decide a desirable name for your company to incorporate it in Singapore. The minimum fee for the same is S$15.
- Registration Fee: In order to register your company in Singapore, you need to pay S$300 to ACRA.
A total of S$315 has to be paid initially to ACRA while incorporating your company in Singapore. Further, the following factors have to be considered which drive the costs for a smooth flow of business in the country:
- Compliance Costs: A screening of the board of directors and shareholders is a mandatory step which needs to be taken according to the Companies Act in Singapore, before the business is set up. This task can be undertaken by your company’s secretary and covers the company’s key personnel and combat risks.
- Administrative Costs: These cost between S$100-S$250 and include the cost of filing returns, any change of directors or shareholders, and EGM.
You also need to pay for professional services or financial consulting to set up your firm in Singapore.
Water and Shark can help you with the same by creating a decent package and guiding you through the process of incorporating in Singapore without any hassles.
September 27, 2019
