Singapore Company Incorporation Fees: What You Can Expect and How to Reduce Your Costs

Incorporating a company in Singapore can be a complex and daunting task, especially when it comes to understanding the fees involved. Singapore is one of the world’s most attractive and business-friendly locations, and setting up a company here can bring numerous benefits and opportunities. However, without a clear understanding of the incorporation fees, businesses can quickly add up and deplete their funds.

The Main Fees for Company Incorporation in Singapore

The total incorporation fee in Singapore consists of three main components:

1. The Filing Fees:

• RS Form (Standardised Form of Statement of Allocation and Distribution): S$20 (approximately $15 USD)
• N/A Form (Form of Statement of Nominee Company): S$20 (approximately $15 USD)
• Form (Form of Certificate of Identity of Directors, Shareholders, and Secretary): S$100 (approximately $75 USD)
• Certificate of Filing: S$100 (approximately $75 USD)

2. The Incorporation Agency Fees:

• Average Incorporation Agency fees can range from S$400 to S$2,000 (approximately $300 to $1,500 USD), depending on the service provider and package.

3. The Paid-Up Capital Fee:

• This fee varies depending on the amount of paid-up capital (minimum required S$1)

Taxes and Fees for Newly Incorporated Companies in Singapore

As a newly incorporated company in Singapore, there are certain taxes and fees you will need to pay, including:

1. Accounting and Reporting Fees:

• The Auditor’s fees (average 1-3% of revenue) for an Annual General Meeting and Financial Report filing.

2. BAS (Business Activities Statement): S$25 to S$125 (approximately $20 to $100 USD) per filing (depending on the number of business activities declared).
3. Tax Compliant Fees: This fee will vary depending on the complexity of your tax requirements, but averages around S$100 to S$500 (approximately $75 to $400 USD) annually.
4. Filing and Payment of CPF Contributions: Employers are required to contribute up to 15% of each employee’s wage to the Central Provident Fund (CPF); S$600 (approximately $450 USD) is the annual fee for employing an employee who earns up to S$8,000 per annum.

Tips for Reducing Company Incorporation Costs in Singapore

If you’re considering incorporating a company in Singapore, there are ways to reduce the costs involved. Here are some tips:

1. File documents electronically to reduce paper handling fees.
2. Submit annual returns (Business Activities Statements and Annual Report) on time to avoid fines.
3. Choose the correct business entity: Sole Trader or Partnership instead of a company to reduce administration fees.
4. Consider consolidating your tax return with the Income Tax authority, IRAS (Inland Revenue Authority of Singapore), for an additional 0.25% of assessed income.
5. Work with a company formation agent: These agents may charge lower agency fees compared to doing it yourself or working with multiple service providers.

Conclusion

Company incorporation fees in Singapore can be daunting, but by understanding the fees and tips, businesses can avoid costly mistakes. Incorporating a company in Singapore offers numerous benefits, including business-friendly regulations and low taxes, but it is crucial to weigh these benefits against the costs. With careful planning and consideration of these fees, your business can thrive in one of the most competitive and desirable locations in the world.

Frequently Asked Questions

Q: What are the minimum fees required for incorporating a company in Singapore?

A: The minimum fees required for incorporating a company in Singapore start at S$140 (approximately $100 USD) for filing the RS and N/A Forms.

Q: Are there any tax benefits for new companies in Singapore?

A: Yes, newly incorporated companies in Singapore may be eligible for a tax exemption of up to S$10,000 in the first 5 years for profit tax. Additionally, small companies with turnover up to S$1 million per annum can apply for tax rates of up to 6%.

Q: What is the best way to handle company documentation in Singapore?

A: Consider filing documents electronically through the Companies House website (Acra) or work with a company formation agent who will handle the necessary documents and submission process.