Opening a Company in Singapore

Roger Pay
Aug 19
6 min read

Opening a Company in Singapore

How to Open a Company in Singapore

The process of opening a company in Singapore is known for being efficient and straightforward, especially if you engage a professional corporate services provider. The main regulatory body is the Accounting and Corporate Regulatory Authority (ACRA).

Here are the key steps and requirements:

1. Choose a Business Structure The most common structure is a Private Limited Company (Pte. Ltd.), which provides limited liability to its shareholders. Other options include Sole Proprietorship, Partnership, and Limited Liability Partnership (LLP).

2. Meet the Basic Requirements To register a Private Limited Company, you must have:

A minimum of one shareholder (can be an individual or another company).
A minimum of one resident director (a Singapore Citizen, Permanent Resident, or a foreigner with a valid Employment Pass or EntrePass).
A qualified company secretary (must be a resident of Singapore).
A local registered office address (P.O. boxes are not allowed).
A minimum paid-up capital of S$1.

3. Reserve a Company Name Before you can register the company, you need to apply to ACRA to reserve your proposed company name. The name must be unique, not obscene, and not infringe on any trademarks. The name reservation fee is S$15, and if approved, the name is reserved for 60 days.

4. Prepare the Necessary Documents You will need to prepare and submit:

The approved company name.
The company's constitution (articles of association).
Details of the company's directors, shareholders, and company secretary.
A description of the business activities.
The registered office address.
For foreign individuals, identification and address details are required.

5. Register the Company The company registration is done online via the ACRA BizFile+ portal. If you are a foreigner, you are required by law to engage a registered filing agent (such as an accounting firm or corporate services provider) to submit the application on your behalf.

6. Open a Corporate Bank Account Once the company is incorporated, you will need to open a corporate bank account.

How Much Does it Cost?

The cost of opening a company in Singapore varies, depending on the services you need. The government fees are:

Company Name Application Fee: S$15
Company Registration (Incorporation) Fee: S$300
Total Government Fees: S$315

If you are a foreigner, the total cost will be higher as you are required to use a professional service provider. Most corporate service providers offer packages that include:

Company incorporation.
Provision of a company secretary.
Provision of a local nominee director (if you do not have a resident director).
Provision of a registered office address.
Assistance with opening a bank account.

The cost for these packages can range from a few hundred to several thousand Singapore dollars, depending on the scope of services and the provider you choose. For example, a basic package for a foreigner requiring a nominee director and company secretary can cost anywhere from S$1,000 to S$4,000 or more for the first year.

The company, Bestar Singapore, is a professional corporate services provider that offers a range of services for company incorporation, including assistance for foreign individuals and companies. They can help you with all the required steps, including corporate secretarial and nominee director services.

For specific pricing and a customized quote, it is best to contact them directly using the provided contact information.

Professional Fees

In Singapore, professional fees for company incorporation can vary greatly, with a typical cost ranging from S$1,000 to S$4,000 or more for the first year. This is in addition to the mandatory government fees, which total S$315 for name reservation and registration with the Accounting and Corporate Regulatory Authority (ACRA).

Breakdown of Professional Fees

Professional fees are charged by corporate service providers and are often bundled into packages. The cost is heavily influenced by the services included, especially for foreign entrepreneurs who are required by law to engage a professional agent.

Company Incorporation Services: This is the core service that includes preparing and filing all the necessary documents with ACRA. Prices for this can start from a few hundred dollars and go up depending on the complexity.
Company Secretary: By law, all Singapore companies must appoint a resident company secretary within six months of incorporation. Professional firms charge an annual fee for this service, ranging from S$280 to S$900.
Nominee Director: If a company does not have a local resident director (e.g., a foreign-owned company), it must appoint a nominee director. This is one of the most significant costs for foreign entrepreneurs, with annual fees ranging from S$1,800 to S$2,000 or more, plus a refundable security deposit.
Registered Office Address: A registered office address in Singapore is required for all companies. This service is often provided as part of a package and costs anywhere from S$110 to S$420 per year.
Bank Account Opening Assistance: Many service providers assist with the process of opening a corporate bank account, a crucial step after incorporation. This can be a one-time fee, ranging from S$100 to S$500.

Ongoing Professional Fees

Beyond the initial incorporation, companies incur recurring professional fees for compliance and administrative services. These costs range from S$3,000 to S$5,000 annually and include:

Annual Filing: Companies must file annual returns with ACRA and tax returns with the Inland Revenue Authority of Singapore (IRAS). A professional service can handle these filings, often for a fee that is included in the company secretary's retainer.
Bookkeeping and Accounting: Companies must maintain proper financial records. The cost for these services varies widely based on transaction volume and complexity.
Audit Fees: Unless a company is exempt as a "small company," it must appoint an auditor and have its financial statements audited. This is a significant annual cost, with fees starting from S$3,000 per audit.

How Bestar can Help

Hiring a professional corporate services provider in Singapore is highly recommended, especially for foreign entrepreneurs. These professionals, such as Bestar, offer comprehensive assistance that goes far beyond just submitting paperwork.

Here is how Bestar can help:

1. Expert Guidance and Advisory

Bestar offers strategic advice tailored to your specific business needs. We can help you:

Choose the Right Business Structure: We will guide you on the most suitable business entity (e.g., Private Limited Company, Sole Proprietorship, LLP) based on your business goals, liability concerns, and tax considerations.
Ensure Regulatory Compliance: Singapore has strict and evolving regulations from bodies like the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS). Bestar stays updated on these rules, ensuring your company remains compliant from day one. This helps you avoid costly fines and legal issues.
Maximize Tax Benefits: We can advise you on various tax incentives and schemes available to new companies in Singapore, such as the startup tax exemption, helping you optimize your tax liabilities.

2. Time and Cost Efficiency

Outsourcing administrative tasks to Bestar frees up your valuable time and resources, allowing you to focus on your core business activities, such as product development, marketing, and sales.

Streamlined Process: Bestar knows the ins and outs of the incorporation process, ensuring a fast and smooth registration. We handle all the paperwork, including drafting the company constitution and preparing the necessary forms for ACRA.
Cost Savings: While there are professional fees, hiring Bestar can be more cost-effective in the long run. It eliminates the need to hire full-time in-house staff for administrative, secretarial, and accounting functions, reducing overhead costs. It also minimizes the risk of expensive mistakes or non-compliance penalties.

3. Fulfilling Statutory Requirements

Singapore law mandates certain requirements that Bestar can help you fulfill seamlessly.

Nominee Director: For foreign individuals, Bestar can provide a local resident nominee director, which is a legal requirement if you don't have a resident director. We will handle all the responsibilities of this role.
Company Secretary: All companies in Singapore must appoint a company secretary. Bestar can act as your company secretary, ensuring all statutory records are maintained and that filings with ACRA are done on time.
Registered Office Address: We can provide a compliant local registered office address, as using a P.O. box is not allowed.

4. Comprehensive Post-Incorporation Support

The support doesn't end after your company is incorporated. Bestar offers a range of ongoing services to ensure the smooth operation of your business.

Accounting and Bookkeeping: We can manage your financial records, prepare financial statements, and handle your bookkeeping needs, which is crucial for compliance.
Tax Filing: Bestar can assist with corporate tax computation, filing, and Goods and Services Tax (GST) registration and reporting.
Bank Account Opening: We can help you navigate the process of opening a corporate bank account, which can be particularly challenging for foreign directors.
Additional Services: Bestar offers a full suite of services, including payroll management, business licensing, and even assistance with visa and work pass applications for foreign employees.