Setting Up a Company in Singapore
- Roger Pay
- Aug 17
- 10 min read
Setting Up a Company in Singapore
Setting up a company in Singapore is a streamlined process, often taking only a few days if all requirements are met. The key steps and requirements are regulated by the Accounting and Corporate Regulatory Authority (ACRA).
Here is a general guide to setting up a company in Singapore:
1. Choose Your Business Structure
The most common type of business entity in Singapore is the Private Limited Company (Pte. Ltd.). This structure is favored by entrepreneurs because it is a separate legal entity from its owners, offers limited liability for shareholders, and provides tax benefits and a credible image.
Other common business structures include:
Sole Proprietorship: Owned and operated by a single individual with unlimited personal liability.
Partnership: A business owned by 2-20 partners with unlimited personal liability.
Limited Liability Partnership (LLP): A separate legal entity where partners have limited liability and are not responsible for the actions of their co-partners.
2. Meet the Incorporation Requirements
To register a Private Limited Company in Singapore, you need to meet the following criteria:
Company Name: The name must be approved by ACRA. It should be unique and not identical to an existing business, or contain vulgar or offensive words.
Shareholder(s): A minimum of one shareholder is required (can be an individual or a company). There can be a maximum of 50 shareholders.
Resident Director: At least one director must be a local resident of Singapore (a Singapore citizen, permanent resident, or a holder of an EntrePass or Employment Pass).
Company Secretary: You must appoint a qualified company secretary within six months of incorporation. This person must be a Singapore resident.
Registered Address: The company must have a physical, local address in Singapore. P.O. boxes are not allowed.
Paid-up Capital: A minimum of S$1 in paid-up capital is required.
Filing Agent (for foreigners): If you are a foreigner without Singpass, you are required to hire a registered filing agent (e.g., a law firm, accounting firm, or corporate service provider) to submit the application on your behalf.
3. Key Steps to Register Your Company
Reserve a Company Name: Apply to reserve your desired company name through ACRA's online portal, Bizfile+. There is a fee of S$15 for this application. Once approved, the name is reserved for 120 days.
Prepare Documents: Gather all necessary documents and information, including particulars of directors and shareholders, the company's constitution (previously known as the Memorandum and Articles of Association), and a description of your business activities.
Submit the Application: File your company incorporation application through the Bizfile+ portal. The registration fee is S$300.
Receive Your Documents: Once your application is approved, ACRA will issue a Certificate of Incorporation and a Business Profile (Bizfile), which contains your company's unique entity number (UEN).
Complete Post-Incorporation Tasks: After registration, you'll need to:
Open a corporate bank account.
Obtain any necessary business licenses or permits from the relevant authorities.
Appoint a company secretary within six months.
Familiarize yourself with ongoing compliance requirements, such as annual return filings.
Professional fees
Professional fees for setting up a company in Singapore can be categorized into two main types: mandatory government fees and fees for professional services.
1. Mandatory Government Fees
These fees are paid directly to the Accounting and Corporate Regulatory Authority (ACRA) and are required for every company incorporation.
Company Name Application: A one-time fee of S$15 to reserve your chosen company name.
Company Registration: A one-time fee of S$300 for the incorporation process itself.
2. Bestar Professional Services Fees
Since foreigners without a Singpass ID cannot incorporate a company themselves, they must hire a professional firm. Bestar provides a range of services that are crucial for compliance and a smooth setup process. Our fees for these services vary depending on the package we offer.
Professional fees include:
Incorporation Services: This is the core service for setting up the company, which includes preparing and filing all necessary documents with ACRA. Our fees can range from S$500 to S$1,500 or more, often bundled with other services.
Registered Office Address: A company must have a local, physical address. If you don't have one, Bestar can provide a virtual office address for an annual fee, from S$110 to S$420.
Company Secretary: By law, a company must appoint a qualified, Singapore resident company secretary within six months of incorporation. The annual fee for this service is between S$280 and S$900.
Nominee Director: If all your directors are non-residents of Singapore, you must appoint a local resident director to fulfill the legal requirement. This is a crucial service for foreign entrepreneurs, with annual fees ranging from S$1,800 to S$2,000.
Bookkeeping and Tax Services: Bestar offers additional services for accounting, bookkeeping, and annual tax filing, which are necessary for ongoing compliance. Fees for these services vary widely based on the volume of transactions and the complexity of your business. Professional fees for bookkeeping, accounting, and annual tax filing for a company in Singapore vary widely based on several key factors, primarily the volume and complexity of your business transactions. 💰
These services are typically offered in packages or on an à la carte basis by Bestar.
📊 Fee Structures and Costs
Fees are calculated based on a per-transaction or annual retainer model. Here is a breakdown of costs:
Bookkeeping Services: The primary cost driver here is the number of transactions your company processes.
Low Volume: For a business with very few monthly transactions (e.g., under 100), fees can range from S$75 to S$400 per month.
Medium to High Volume: As transaction volume increases, so does the cost. For companies with hundreds of transactions per month, fees can go from S$400 up to S$1,500 or more monthly.
Annual Bookkeeping: Bestar offers a yearly service, which may be a more cost-effective option for businesses with low activity, with prices starting from S$350 per year.
📈 Annual Tax Filing and Financial Statement Fees
Corporate Tax Filing (Form C/C-S): All companies in Singapore must file an annual tax return with the Inland Revenue Authority of Singapore (IRAS). The fee for this service depends on the complexity of your company's finances.
Simple Filings: For companies with straightforward finances and low transactions, the fee for filing Form C-S (a simplified version) can range from S$300 to S$600.
Complex Filings: For companies with more complex financial structures, the fee for filing Form C can be higher, ranging from S$800 to S$1,500 or more.
Preparation of Unaudited Financial Statements: Companies are required to prepare financial statements annually. This service involves compiling a director's report and a complete set of financial statements. Our fee ranges from S$250 to S$600 per year, depending on the complexity of the financials.
💼 What's Included and Other Factors
Bestar offers bundled packages that combine these services for a more competitive price. A package might include bookkeeping, annual financial statements, and corporate tax filing. Other factors that influence the total cost include:
GST Filing: If your company is GST-registered, quarterly or bi-annual GST filing services will be an additional cost, ranging from S$150 to S$500 per quarter.
XBRL Conversion: For certain companies, financial statements must be filed in the XBRL format. This is an additional service with fees ranging from S$200 to S$700.
Ad-Hoc Services: Charges for services like payroll management (often billed on a per-employee basis) or assistance with tax queries from IRAS will be separate.
Bank Account Opening Assistance: Bestar assists with opening a corporate bank account, a process that can be challenging for foreign companies. We charge an additional fee for this service. Navigating the process of opening a corporate bank account in Singapore, especially for a foreign-owned company, can be complex. Bestar offers "Bank Account Opening Assistance" as a separate service to guide you through this process.
Why is this service needed?
Compliance: Singapore banks have strict "Know Your Customer" (KYC) and Anti-Money Laundering (AML) regulations. They require a significant number of documents and often want to meet with the directors and account signatories in person.
Streamlining: Bestar can ensure all your documents are prepared correctly and in the format required by the bank, which can prevent delays and application rejections.
Negotiation & Expertise: Bestar has established relationships with specific banks. They can use this relationship to facilitate a smoother process and provide advice on which bank is best suited for your business needs (e.g., local versus international transfers, multi-currency accounts).
Remote Opening: While many banks require a physical presence,Bestar can help facilitate remote bank account opening for non-residents, though this is becoming less common due to stricter regulations.
Fees for Bank Account Opening Assistance
The fee for this service can vary significantly depending on the the complexity of your company's structure, and the bank you choose. Here are some price ranges:
Basic Assistance: For a straightforward company with a simple structure, a basic service might include preparing the necessary documents and scheduling the bank appointment. Fees for this service can range from S$200 to S$500.
Comprehensive Assistance: A more comprehensive service may include:
Document preparation and certification.
Arranging the bank appointment.
Serving as an intermediary between the bank and the client to address queries.
Assistance with filling out the bank's application forms.
Facilitating the process if the account signatory is not in Singapore (if the bank allows it).
Fees for this type of service range from S$500 to S$1,000 or more.
Bundled Packages: Bestar includes bank account opening assistance as part of our larger incorporation or all-in-one business setup packages. The cost is therefore often not an additional fee but rather a component of the overall package price.
Employment Pass Applications: For foreigners who plan to work in their new company in Singapore, applying for an Employment Pass is a key step. Professional firms offer assistance with this process for an additional fee. Securing an Employment Pass (EP) in Singapore is a critical step for foreign professionals, managers, and executives who wish to work in the country. Given the complexity of the application process and the strict criteria set by the Ministry of Manpower (MOM), many individuals and companies choose to hire Bestar to assist them.
Bestar can significantly improve the chances of a successful application by ensuring all requirements are met and all documents are in order.
Breakdown of Fees for Employment Pass Application Assistance
The fees for professional assistance are separate from the mandatory government fees. They can be broken down into two main categories: the service fee and the government fees.
1. Professional Service Fees
This is the fee charged by Bestar for our expertise and services. It covers:
Initial assessment: Evaluating your eligibility and the likelihood of a successful application based on your qualifications, salary, and the company's profile.
Document preparation: Guiding you on the necessary documents and ensuring they are correctly compiled. This includes personal documents (CV, educational certificates) and company documents (ACRA BizFile, financial statements).
Application submission: Submitting the EP application on your behalf via the MOM's online portal (EP Online).
Liaison with MOM: Handling all communications and queries from MOM during the processing period.
Follow-up and tracking: Monitoring the application status and keeping you informed.
Appeal services: Bestar offers assistance with a single appeal if the initial application is rejected, as an additional charge.
Service Fees: For a new Employment Pass application, Bestar's service fee ranges from S$1,000 to S$2,000.
2. Government Fees (Paid to MOM)
These are non-refundable fees that are paid directly to the Ministry of Manpower. Bestar will handle the payment on your behalf and include it in our final invoice.
Application Fee: A fee of S$105 is paid to MOM when the application is submitted.
Issuance Fee: If the application is approved, a fee of S$225 is paid to MOM for the issuance of the pass.
Multiple Journey Visa: If a Multiple Journey Visa is required, there may be an additional fee of S$30.
Other Potential Costs
Dependant's Pass: If the EP holder wishes to bring family members (spouse and/or unmarried children under 21), a separate Dependant's Pass (DP) application is required. Our professional service fee for a DP application is lower, ranging from S$500 to S$700 per person, plus the MOM government fees (S$105 for application and S$225 for issuance).
Translation/Notary Fees: If any of your documents are not in English, you will need to pay for certified translations. This is a separate cost.
How Bestar can Help
Engaging Bestar is a highly recommended, and often mandatory, step for company incorporation in Singapore, especially for foreign individuals and entities. Bestar offers a wide array of services that go beyond simple registration, helping to ensure compliance and set your business up for long-term success.
Here's a breakdown of how Bestar can help:
1. Mandatory Services for Foreigners
Registered Filing Agent: By law, foreigners without a Singpass account cannot register a company themselves. You must engage a registered filing agent (which is what a professional firm is) to submit the application to the Accounting and Corporate Regulatory Authority (ACRA) on your behalf.
Nominee Director: If all the company's directors are non-residents of Singapore, the company is legally required to appoint a resident director. Bestar provides this service, allowing foreign entrepreneurs to meet this legal requirement without needing to relocate.
Company Secretary: Every company in Singapore must have a qualified, Singapore-resident company secretary within six months of its incorporation. Bestar provides this service, ensuring you meet this crucial statutory requirement.
2. Streamlining the Incorporation Process
Expertise and Compliance: Bestar has in-depth knowledge of Singapore's business laws and regulations. We ensure all documents are prepared accurately and that the entire process is compliant with ACRA and IRAS (Inland Revenue Authority of Singapore) guidelines, minimizing the risk of errors and costly fines.
Time and Efficiency: We handle all the paperwork, filings, and administrative tasks, significantly speeding up the incorporation process. This allows you to focus on your core business activities, such as strategic planning, marketing, and securing clients.
Document Preparation: Bestar will prepare all the necessary legal documents, including the company's constitution, board resolutions, and consent forms for directors and shareholders.
Registered Address: Bestar offers a registered office address service, providing a physical, local address for your company to receive official correspondence, a legal necessity for all Singaporean businesses.
3. Post-Incorporation Support and Ongoing Compliance
Corporate Bank Account Opening: Bestar assists with the often-complex process of opening a corporate bank account. We can guide you through the documentation required and even arrange meetings with banks.
Accounting and Tax Filing: Bestar provides a full suite of financial services, including bookkeeping, preparation of financial statements, and corporate income tax filing. This ensures your company remains compliant with all accounting and tax regulations.
Payroll Services: We can manage your company's payroll, handling salary disbursements, CPF (Central Provident Fund) contributions, and annual tax submissions for employees.
Business Advisory: Beyond administrative tasks, Bestar offers strategic business advice on corporate structuring, tax planning, and managing risk. We can act as a long-term partner, helping your business grow and adapt to the local market.
Work Pass Applications: For foreign entrepreneurs who wish to work in their Singapore company, Bestar assists with the application for an Employment Pass (EP) or EntrePass, helping to navigate the process with the Ministry of Manpower (MOM).
By engaging a professional service provider, you not only ensure legal compliance but also gain a strategic partner who can help you navigate the complexities of running a business in Singapore, freeing you to concentrate on your company's success.
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