Are you wondering how much it costs for Setting Up Company in Singapore? This is a common question being asked by those who want to start their own business but don’t know how. Since they have limited expertise, they just want to avail the services of an agency that can help them.
Setting Up Company in Singapore usually costs between 300 to 1000 SGD. This includes all the paperworks to establish your business. However, there are still some fees to pay like different licenses in order for your company to operate.
Let’s discuss the different stages of business development, from registering until it gets fully operational.
Stages of Business Development and its Estimated Cost
- Stage 1 – Business Registration. The Government Agency in Singapore supervising the business registration is the Accounting and Corporate Regulatory Authority (ACRA). This is where you’re going to submit all the necessary papers to register your business.
The first step in registration is by writing down 3 possible names for your company. It should describe the nature of your business as much as possible. When you submit this to ACRA, they will check if it’s available and notify you once it’s done. If your proposed name isn’t available, they’ll be asking whether you want to use your 2nd or 3rd choice. Aside from the business name, ACRA will ask you to provide them the following:
- The address of your business
- The address of the business owner
- The type of business you’re registering
The breakdown of payment you’re going to have are the following:
- For Self-Registration, you need to pay 115 SGD. It’s the payment for the Name Reservation and the Business Entity Registration. The former costs 15 SGD while the latter costs 100 SGD.
- For Setting Up Company in Singapore, you need to pay from 300 to 1000 SGD.
- Licenses. This one varies depending on the nature of your business
- Stage 2 – Financing your Business. The next thing you have to do after the registration is fund your business. There are 3 primary options for this. These are the following:
- Bootstrapping. This method of financing involves starting your business from scratch and using whatever personal money you have. Since you’re the only one spending for your business, all the income is yours.
Bootstrapping literally costs nothing but for your benefit, you must at least have reasonable money in the bank.
- Finding some investors. This method of financing involves looking for people to join your business. They will fund your company provided they’re going to get something in return. This could be shares, dividends, debt with interest, etc. It depends on your written agreement.
This particular method of financing is favorable for big companies like real estate, shipping, and airline companies where a great amount of money is needed.
- Availability of some business loan. There are many financial companies now that offer loans to startups. This is a great way to fund your business if you don’t want to work with an investor or anybody in particular. The challenge with this method, however, is the amount of interest that you need to pay eventually and your schedule of payments. Otherwise, a penalty will be imposed on you.
- Step 3 – Setting up your business. After the business registration, this particular step is really the one expensive among others. It involves the following aspects:
- Business set up. The cost of this one depends on the nature of the business and whether you just want a service provider to do it for you.
- Rental Deposit. The usual practice is to make a 1 month deposit and 1 month advance payment if you want to reserve the place you intend to install your business.
- Renovation. You can’t expect your intended location to be occupancy ready right away. You need to acquire and arrange furniture, repaint, install electrical wirings, etc. before you can move into your new office. The cost would be around 10,000 to 100,000 SGD, depending on the nature of the renovation.
- Insurance. For peace of mind and security, it’s better to ensure your building and the payroll of the employees. Should anything bad happen, you’re prepared.
- Recruitment. A company can’t operate without employees or it will be hard for the manager at least. Hiring employees before the start of your business is essential.
- Stage 4 – Operating your business. Operating your business will cost you as well as you have to spend on the different aspects of the business. The following are the expected expenses for this one:
- Business operations and utilities. The company needs to buy some supplies for its operation and pay for the basic utilities such as water, electricity, phone, and the internet.
- Overheads. This includes rent, payroll, etc. Its cost ranges from 10,000 to 100,000 SGD.
- Raw Materials. The cost of this one depends on the nature of the business
- Marketing and Accounting. The cost of these ones also depends on the nature of the business.
To sum it up, a setting up company in Singapore charges 300 to 1,000 SGD but it’s only for the business registration. The majority of the expenses are in the setting up stage and in the proper operation of your business.
Do You Need Help for Company Registration?
If you need further advice about the Setting Up Company in Singapore, We at 3E Accounting would like to help. We’re among those known Setting Up Company Singapore that provides quality incorporation for your company.
We can’t wait to serve you. You can use the Contact Us of this page to reach us.