How much does it cost to start a business in Singapore?

Singapore Company Registration Cost- Types of Costs

First, it is crucial to understand the associated cost of setting up a company in Singapore. When you have an idea of this, you can go ahead with setting up your business easily. You would have a clear picture in mind of setting up a business in Singapore.

We all know that costs are mandatory for a business. In fact, a business would not succeed or run without any costs. When you go for registering your company in Singapore, there is a cost of registration or when you have to reserve the name of the company, there is a cost for reserving the name also. The salaries that you pay an employee would be the monthly cost with respect to running your business.

The following are the Singapore company registration cost which has to be kept in mind after starting a business:

• Fixed Cost- This cost is a part of the fixed proportion for the business. This can be measured on a monthly basis, quarterly basis, or annual basis. Fixed costs for a company are also known as overhead costs. This would include the cost such as payment of rent, lease premises costs, electricity and manager wages. However, there is no hard and fast run that these costs are fixed. They can also vary.

• Variable Cost- This cost varies depending on the company, service area, and department. Depending on the functioning of a business this cost can vary.
  
  
• Indirect Cost- This form of cost is similar to fixed costs, as it does not vary. This can be the maintenance provided or the electricity or the wages of the employees.

• Output Cost- This form of cost can be measured as per the requirement of the business. The financial department of a company or your business would derive a budgetary plan for running the business. If you consider production to be more, then output cost must be increased. 

• Controllable Costs- These costs are usually identified with a proper system of carrying out budgets.  Through the budget, a financial manager’s responsibility is to allocate the required funds for carrying out the functions of the company.

Cost of setting up a company in Singapore

Now that you know the types of costs, let us go into understanding the cost of setting up a company in Singapore. There are different authorities which you have to consider under Singapore company registration cost. 

1. Registration Fee or Costs

Whether you are a domestic entity in Singapore, or a foreign company that wants to register its business in Singapore you have to deal with the company registration authorities. The Accounting and Corporate Regulatory Authority of Singapore (ACRA) deals with company registration and other related procedures.

The registration cost for your business would be the following:

• Registration fee with the ACRA which is a one-time expense of SG$ 300. This registration cost can be paid online through the BizFile+ Portal when you register your business in Singapore.
• Along with this, you have to carry out a name search for your company. When calculating the cost of setting up a company in Singapore, another cost incurred in registering your company is reserving the name of your business. You would not want to choose a name that is violating any rules related to intellectual property rights in Singapore. Nor would you want to choose a name which is already taken by another company. The cost associated with reserving a name is SG$ 15 which is again a one-time expense that can be paid online. All the above registration costs is one-time expense.
• Total Expenses Incurred in Registration- SG$ 300 + SG$ 15= SG$ 315.
• If you are a foreign company that wants to incorporate your business in Singapore, you would have to use the services of a registered filing agent in Singapore. Depending on the services which you need for your business, you can use the assistance of a registered filing agent. 

Ocumen’s business registration packages start from SG$ 1299. With This promotional package, you get company secretary services, incorporation services, and registered office address free for the first year. Our Nominee Director package starts from SG$ 999 which includes Business Visa Assistance and opening a bank account which is free. All these will be considered under the cost of setting up a company in Singapore.

2. Banking Fee

Once you receive a certificate of registration from the ACRA, you have to open a bank account in Singapore. There are different types of international banks in Singapore offering banks accounts. Setting up a business bank account would be a related cost of setting up a company in Singapore. There are different forms of bank accounts in Singapore. These include retail bank accounts and business bank accounts.

Opening a business bank account in Singapore would be part of Singapore Company Registration Cost. There are several banks in Singapore that cater to the needs of domestic and international business. You can choose the following banks to open your business bank account with:

• DBS Bank
• OCBC Bank
• Standard Chartered
• Citibank

All banks have different terms and conditions when it comes to setting up a business bank account. It would be advisable for you to go through the terms and conditions and finalize which bank is suitable for your business. For example, to maintain a foreign currency account with DBS and OCBC, the initial deposit is around USD 1000. If you go ahead with international banks, then their initial deposit amount may be more.

For the purposes of this article, we will consider DBS for local banking services. If you have a Business Digital Account with the bank, then you have a pay a monthly banking fee of SG$ 18. When you open a bank account, an initial deposit of SG$ 1000 must be made.

DBS also has accounts that operate in different currencies. This account is known as the Multicurrency Account. An initial deposit of SG$ 10,000 must be made for opening this form of account. 

Total Expenses Incurred in opening a Corporate Bank Account in Singapore would be between SG$ 1,050 to SG$ 11,000 annually. Hence when you think about the cost of setting up a company in Singapore, keep in mind the banking costs.

3. Administration and Setup Costs

Using an office would be added to the cost of setting up a company in Singapore. If you are in a Singapore business district then you would be spending around SG$ 30,000 on your office premises. This may be even more in business hot spots.

Instead, if you are a start-up company in Singapore, why not consider using the premises of a co-working space. You would not have expenses such as utility costs and operating expenses for your business. For this, you would have to pay between SG$ 200 to SG$ 800.

Total Expenses incurred in the administration and set up costs would be SG$ 1000 to SG$ 30,000 annually.

4. Development Costs

These costs would include marketing and developing the website for your business. The cost of setting up a company in Singapore would also include post-registration costs such as marketing and development. 

To market your products in Singapore, you would definitely require a website. You need the services of a web developer which would cost you around SG$ 2,500 to SG$ 4,000. Along with this there are associated maintenance costs.

Conclusion

The cost of setting up a company in Singapore is an important consideration that you have to keep in mind. There are different forms of associated costs for your business. At Ocumen, we understand the costs incurred with incorporating your company.

If you are interested in obtaining more information on the cost of setting up a company in Singapore, then you can contact us for a free consultation.