The Complete Guide to Registering a Company in Singapore in 2025: Process and Costs Explained

The Complete Guide to Registering a Company in Singapore in 2025: Process and Costs Explained

Starting a new company in Singapore, particularly when it comes to company registration, involves a straightforward process with clear steps and certain costs. This guide outlines the entire procedure from start to finish, including various business entity types, legal requirements, and fees you need to understand. Whether you are a local or international entrepreneur, this article will help you navigate the company registration process in Singapore in 2025.

Key Takeaways

• The company registration process in Singapore involves several key steps, such as checking name availability, submitting a business registration application, and meeting requirements like appointing a nominee director and a corporate secretary.
• There are different types of business entities in Singapore, such as Private Limited Companies and Sole Proprietorships, each offering distinct benefits and drawbacks related to liability, tax obligations, and business structure.
• Knowing the costs associated with company registration, including government fees and service provider charges, is essential for effective budget management and minimizing expenses.

Steps to Register a Company in Singapore

Starting a company in Singapore has become quite efficient, thanks to a well-organized system. The first step is to ensure the availability of your desired company name, followed by the business registration process.

Key requirements include appointing a nominee director, securing a corporate secretary, and having a local office address. Once these prerequisites are met, the registration process can usually be completed within about three days.

Name Application Process

To begin forming a company in Singapore, you must first get approval for your company name through Bizfile+, the online filing system of ACRA (Accounting and Corporate Regulatory Authority). This process costs a modest S$15. After approval, you have 120 days to register your business under the reserved name, or it will be released to others.

Choosing a unique and meaningful name is crucial as it reflects your business’s identity and brand. Your name must not violate any existing trademarks, and Bizfile+ makes it easy to apply for name approval.

Business Registration Process

After your company name is approved, the next step is registering your business. This can be done quickly, usually within an hour, through Bizfile+. Foreign individuals without Singpass access must appoint a registered filing agent to assist with the process. The registration fee is S$315, and you’ll need various documents, including the Company Constitution.

Once your company is incorporated, you will receive a Unique Entity Number (UEN), which is your business’s identifier. A free Business Profile will also be provided, which is important for opening bank accounts and completing other official tasks.

Types of Business Entities in Singapore

Singapore offers a variety of business entity types to suit different needs. It’s important to understand the characteristics and requirements of each type to choose the one that best fits your business goals.

Private Limited Company

The Private Limited Company is one of the most popular structures in Singapore due to its benefits. It offers the company an independent legal status, protecting the owners’ personal assets from business debts. This structure also allows for easier capital raising, as it can issue shares. It requires at least one shareholder but no more than 50. Unlike public companies, shares are not traded on stock exchanges, providing greater control over ownership. This structure is ideal for businesses aiming for growth and seeking investors.

Sole Proprietorship

A Sole Proprietorship is the simplest form of business, with a single individual owning and running the company. There is no legal distinction between the business and the owner, meaning that personal assets are at risk for any business liabilities. While the owner enjoys full control over profits and faces fewer regulatory requirements, they are subject to personal income tax rates rather than corporate taxes. This structure is best for small-scale operations or individual entrepreneurs who are comfortable with the risks involved.

Branch Office

A Branch Office is an extension of a foreign company and operates under the same legal identity. It does not form a separate legal entity. The foreign parent company must submit relevant documents to ACRA, including a resolution and business profile. Branch offices in Singapore are subject to the corporate tax rate, and they may qualify for certain tax benefits. This structure allows international companies to establish a presence in Singapore without full incorporation.

Costs of Company Registration

Understanding the costs involved in company registration is essential for effective budgeting. Costs are split into government fees and service provider charges, each serving different purposes.

Government Fees

The government fees for company registration are straightforward. Reserving a company name costs S$15, while the company registration fee is S$300.

Service Provider Fees

Corporate service provider fees vary based on the services included, such as document preparation, company secretary provision, nominee directorship, and a registered address. For local residents, the basic incorporation fee is S$315. However, foreign directors or owners need to use a registered agent, which incurs additional costs. Service providers may also charge extra for opening a business bank account or for providing official seals or certificates.

Compliance Requirements

To remain compliant with Singapore’s regulatory framework, businesses must adhere to various obligations set out by the Singapore Companies Act. These include submitting annual filings, appointing a company secretary, and maintaining a registered address.

Annual Filings

All companies must submit their annual returns within a specified period to ACRA. For private companies, this must be done within seven months of the end of the financial year, and for public companies, within five months. Failure to file on time can lead to penalties and reputational damage.

Company Secretary

A company secretary must be appointed and be a Singapore resident. This role is mandatory and must be filled at all times. The company secretary ensures compliance with legal requirements and submits annual filings to ACRA.

Registered Address

All businesses must have a registered address in Singapore that is open to the public during business hours. P.O. boxes are not allowed. If a company doesn’t have its own premises, it can engage a service provider to provide a registered address.

Opening a Corporate Bank Account

Opening a corporate bank account is necessary to separate personal and business finances. Popular banks include DBS, OCBC, and UOB. The process requires various documents, such as bank forms, resolutions, and certified copies of incorporation certificates. Some banks, like Airwallex and Aspire, allow remote account opening, though approval is not guaranteed.

Tax Benefits of Incorporating in Singapore

Singapore offers attractive tax incentives for newly incorporated Private Limited Companies. In the first three years, companies can receive a full exemption on the first SGD 100,000 of taxable income. The corporate tax rate is set at 17%, and there is no tax on capital gains. Additionally, Singapore’s single-tier tax system means that profits are taxed only once, with no further tax on distributions.

There are also tax treaties in place to prevent double taxation for businesses earning foreign income. Smaller companies with annual revenue below SGD 10 million may qualify for audit exemptions.

Using a Registered Filing Agent

For foreign entrepreneurs without Singpass, using a registered filing agent can simplify the company registration process. These agents help with filings, compliance, and paperwork, enabling business owners to focus on growing their businesses. They must complete a training program on Anti-Money Laundering (AML) and compliance.

Verifying Company Registration

To ensure the legitimacy of a business, you can use ACRA’s Bizfile+ platform to search for company details, including its operational status, registration number, and activities. A business profile from ACRA provides comprehensive information about a company, confirming whether it is active.

Common Challenges and Solutions

Entrepreneurs may face challenges in the registration process, such as meeting regulatory deadlines or overcoming market entry barriers. Using a registered filing agent can help manage compliance, while time management is crucial for balancing business and personal life. International businesses may also encounter challenges with supply chains or licensing requirements.

Tips for Minimizing Registration Costs

To reduce costs, consider appointing existing staff as directors rather than hiring a local nominee director. This can lower initial and ongoing expenses. Additionally, conducting a market comparison of service provider rates can help you find cost-effective options.

Conclusion

Successfully registering a company in Singapore requires a clear understanding of the steps involved, including name reservation, business registration, and compliance with legal obligations. The efficient business environment in Singapore makes the process straightforward. By carefully planning and using professional services, entrepreneurs can avoid delays and manage costs effectively, laying a strong foundation for their new business. Contact us today to register a company in Singapore.