Company registration is the procedure of forming a new company legally following the laws of the country of registration. Along with the other legal procedures involved in registering a company, registration and compliance fees are also part of the process.
If you are thinking of starting a new business or have already planned a start-up and want to register your company, then this guide is the right one for you. In this guide, we have covered the necessary details on the registration and compliance fees that Singapore companies need to pay.
The process of setting up a company in Singapore is an inexpensive one, but even though it mainly involves a set procedure, a certain amount of financial planning is definitely also required.
Before you begin your new venture, it pays to take a closer look at the actual costs of starting a business in Singapore:
How Much Does It Cost To Register A Company?
The Accounting and Corporate Regulatory Authority (ACRA) serves as the registrar of companies in Singapore and does not review applications for free. This means ACRA will charge a fee from all types of businesses for the incorporation process.
What you can expect to be paying for:
Company Registration Fees
The initial step towards becoming an established and functioning business in Singapore is to get your company registered with ACRA.
Business Name Approval:
For the business name registration, ACRA will charge you around S$15. This amount will have to be paid through the BizFile+ portal at the same time when the application is submitted. ACRA will then reserve the business name for around 60 days before giving it final approval for registration.
But before you file for business name registration, do check if the name you have chosen is available and meets the criteria set for the company name. Read our article on Pointers to Pick a Company Name in Singapore to choose a name that not only resonates with your brand but is also more likely to get approved by ACRA within no time.
You can begin to apply for company incorporation once your business name is approved. The standard registration fee is S$300 for a new company. But you would need to pay an additional fee if you are converting your company type or registering for an for amalgamation of companies.
So, the company registration cost in Singapore is at least $315, but this covers only the application process. There are other requirements you need to meet for your submission to succeed.
After the registration, you would look into the corporate compliance fees. Even after all these, there will be indirect costs that will add to your overall company expenses.
Mentioned below in this guide are a few of the most important factors to consider when it comes to the costs of registering a company in Singapore.
Factors To Consider When Registering A Company
ACRA requires a registered address from where your business will be operating, and this is to be submitted along with all the other registration details. So, before you apply for incorporation, you will need to first get a valid office.
One way this can be done is to rent a commercial property. It will cost you between S$2,000 and S$3,000 per month for a basic office for 2-3 workers in the Central Business District in Singapore. But if you are not too keen on spending so much on getting an office space, you can consider getting a virtual office address through a corporate service provider. It would just cost you a fraction of the price of renting an office.
You will need a company stamp, which will come in handy when handling official documents such as compliance reports and statements. The cost of the company stamp will vary according to what you choose to get. It will largely depend on how much time and effort is put in by the stamp makers for the particular design you choose for your company stamp.
To make a standard company stamp, it will usually take about 1-3 days in Singapore, with charges ranging between S$19 and S$40. Self-inking stamps generally cost more than rubber stamps.
Tax reporting is one of the essential compliance obligations that comes instantly after the company incorporation stage. Every company that is incorporated in Singapore is supposed to file its corporate taxes by the 30th of November (hard copies) and by the 15th of December (e-filing).
In Singapore, companies are taxed at a flat rate of 17% of their chargeable income for a financial year. The chargeable income refers to the company’s total income after reducing all the tax-allowable expenses. The amount can be further reduced by capitalising on tax incentives and exemptions.
Singapore is considered one of the leading business hubs in the world. This city, for more than a decade now, has provided support by creating business opportunities for both local and international companies.
Undoubtedly, it is quite exciting to start a company in Singapore for both small and large scale companies as it offers the most favourable environment for businesses, but incorporating one comes along with certain costs.
In this guide, we have covered what you need to expect regarding the registration and compliance fees that Singapore companies need to pay. Business owners need to be aware of these fees and do some financial planning to avoid the consequences that come with failure to comply with the necessary legal requirements. If you want to ensure you stay compliant while registering your company as well as after that, engage a reliable corporate service provider. They would make sure you pay only the fees that are required and not waste your hard money in paying penalties.