When researching company registration in Singapore, most entrepreneurs and startup founders are drawn to the attractive, low filing fee—SGD 300. It's often highlighted as a sign of Singapore’s pro-business environment, which it certainly is. However, the truth is that this fee is just the tip of the iceberg. The real costs of Singapore company incorporation go far beyond the official filing amount.
If you're planning your Singapore company setup, understanding the full financial picture is essential. Failing to account for hidden costs can derail your cash flow, delay operations, or even result in regulatory non-compliance.
In this article, we’ll break down the most common hidden and ongoing costs that new businesses often overlook when incorporating in Singapore.
The SGD 300 Filing Fee: What It Really Covers
The SGD 300 fee charged by the Accounting and Corporate Regulatory Authority (ACRA) covers the basic registration of your company in Singapore. It includes:
- Reserving your company name
- Filing your company incorporation documents
- Registering your business in ACRA’s system
That’s it.
There are many other steps involved in setting up a company that are not included in this fee, most of which carry additional costs.
1. Registered Office Address
Every company in Singapore must have a registered local address. This must be a physical location (not a P.O. Box), and it must be accessible during normal business hours.
Estimated Cost: SGD 180 to SGD 500 per year (depending on provider and location)
If you don’t have a local office yet, many service providers offer virtual office or mail forwarding solutions that fulfill ACRA requirements.
2. Corporate Secretary
It’s mandatory to appoint a corporate secretary within six months of incorporation. This person or service is responsible for maintaining statutory records, filing annual returns, and ensuring compliance with Singapore's Companies Act.
Estimated Cost: SGD 300 to SGD 800 per year for basic services
Hiring a qualified company secretary is not just a formality—it’s a legal requirement. Many startups outsource this role to corporate service providers to reduce risk and simplify compliance.
3. Nominee Director (If Applicable)
If you’re a foreigner incorporating a company in Singapore but don’t have a resident director in Singapore, you’ll need to appoint a nominee director to meet legal requirements.
Estimated Cost: SGD 1,200 to SGD 5,000 per year
This is one of the more expensive hidden costs and often requires a security deposit. The nominee director does not participate in the business but must still meet legal and regulatory obligations.
4. Bank Account Setup
While there's no fee to open a bank account directly, many entrepreneurs overlook the cost of time and sometimes bank introduction services, especially if you're a foreigner. Some corporate service providers charge a fee to assist with account opening.
Estimated Cost: SGD 0 to SGD 1,000 depending on the service and bank
Also, some banks may require a minimum initial deposit, usually ranging from SGD 1,000 to SGD 10,000, depending on the account type.
5. Business Licenses and Permits
Depending on your industry, you may need additional licenses or permits before starting operations. These are not part of the ACRA incorporation fee and vary widely.
Examples:
- Food & Beverage License
- Import/Export License
- Employment Agency License
Estimated Cost: SGD 100 to SGD 2,000+ depending on industry
Skipping this step can lead to penalties or forced closure.
Also Read: Understanding Different Types of Strategic Alliances in Singapore
6. Accounting and Bookkeeping
Every company in Singapore is required to maintain proper accounting records, even if it’s a dormant company. You’ll also need to prepare financial statements annually.
Estimated Cost: SGD 600 to SGD 2,500 per year for small companies
Some founders try to handle this themselves at first, but it's usually more efficient and accurate to outsource accounting to professionals.
7. Tax Filing and Annual Returns
Even if your company makes no revenue, you still have obligations to file:
- Estimated Chargeable Income (ECI)
- Annual tax return (Form C or Form C-S)
- Annual Return with ACRA
- Estimated Cost: SGD 400 to SGD 1,200 per year (if outsourced)
Non-compliance can result in fines or blacklisting.
8. Audit Requirements
Private companies that meet at least two of the following criteria must have their accounts audited:
- Annual revenue > SGD 10 million
- Total assets > SGD 10 million
- More than 50 employees
- Estimated Cost: SGD 3,000 to SGD 10,000+ per year
Even though small startups may be exempt, it's important to plan for this as your company grows.
Also Read: Eligibility Criterion for Obtaining Money Changer License in Singapore
9. Insurance and Compliance Costs
To protect your business and meet regulatory expectations, you may need various forms of insurance:
- Public liability insurance
- Work injury compensation insurance (mandatory for employees)
- Professional indemnity insurance
- Estimated Cost: SGD 500 to SGD 2,000+ per year
The exact cost depends on your industry and company size.
10. Staff and Payroll Management
Once you hire employees, you'll face additional expenses beyond just salaries. These include:
- Central Provident Fund (CPF) contributions for Singaporean employees
- Payroll software or services
- Employment contracts and HR compliance
- Estimated Cost: Varies significantly, but payroll services can cost SGD 20 to SGD 100 per employee per month
11. Branding, Website, and Tech Setup
Incorporation is just the first step. You’ll also need to invest in:
- Website developmentDomain and email hosting
- IT infrastructure
- Branding and marketing
- Estimated Cost: SGD 1,000 to SGD 10,000, depending on needs
These aren't legal requirements, but they’re essential for running a competitive business.
Budget Planning Tips for Entrepreneurs
Plan for at least SGD 2,000–5,000 in the first year, even if you’re bootstrapping. If you’re engaging a nominee director or tax services, budget closer to SGD 7,000–10,000.
- Bundle services: Many incorporation providers offer packages that include corporate secretary, registered address, and filing services.
- Understand your industry-specific obligations: Not all businesses have the same licensing, insurance, or tax requirements.
- Don’t ignore compliance: Non-compliance penalties can exceed what you’d pay to do things right in the first place.
FAQs
1. Is SGD 300 the total cost to incorporate a company in Singapore?
No. SGD 300 is the official filing fee with ACRA, but it doesn't include mandatory services like corporate secretary, registered office, or accounting. Most startups should budget at least SGD 2,000 to SGD 5,000 for the first year of setup and compliance.
2. Do I need a nominee director for Singapore company incorporation?
If you are a foreigner and do not have a resident director, then yes, you’ll need to appoint a nominee director. This typically comes at an annual cost and may also require a security deposit.
3. Can I set up a Singapore company myself without service providers?
Technically, yes, if you're a resident and understand all legal requirements. However, most entrepreneurs—especially foreigners—use professional service providers to ensure compliance and avoid costly mistakes.
Conclusion
Singapore is one of the most attractive places in the world to start a business. Its transparent legal system, strategic location, and robust economy make it an excellent choice for startups and international businesses alike.
However, the SGD 300 filing fee only scratches the surface. To avoid surprises, entrepreneurs need to understand and plan for the full cost of incorporation and annual compliance. Whether it's hiring a corporate secretary, managing tax filings, or meeting legal obligations, proper budgeting is key to a successful Singapore company setup.