Open Company Singapore
- a22162
- Feb 8
- 8 min read
Updated: Sep 14
Opening a Company in Singapore
The process of opening a company in Singapore is known for its efficiency and ease. It's a popular choice for entrepreneurs due to the nation's business-friendly environment, low corporate tax rates, and stable economy.
Why Choose Singapore? 🇸🇬
Singapore consistently ranks as one of the best places in the world to do business. Its government provides a supportive ecosystem for startups and established companies alike. Here are some key benefits:
Tax Advantages: Singapore has a one-tier corporate tax system, and its corporate tax rate is a flat 17%. Furthermore, new companies can enjoy significant tax exemptions for their first three years, with a 75% exemption on the first SGD 100,000 of chargeable income and a further 50% exemption on the next SGD 100,000.
100% Foreign Ownership: Foreigners can own 100% of a company in Singapore without needing a local partner, offering full control over their business.
Global Connectivity: Strategically located, Singapore is a major global hub for trade and logistics with robust air and sea links. It has also signed double taxation avoidance agreements (DTAs) with over 80 countries, which prevents a company's income from being taxed in both Singapore and its home country.
Strong Legal Framework: The country boasts a stable political climate and a strong legal system that protects intellectual property and provides a secure environment for business operations.
Essential Requirements for Company Incorporation
Before you start, you'll need to satisfy some key requirements set by the Accounting and Corporate Regulatory Authority (ACRA), the national regulator of business entities.
1. Company Name
Your proposed company name must be unique and approved by ACRA. You can check for name availability and reserve it on the BizFile+ portal. The name should not be identical to an existing company, infringe on trademarks, or contain vulgar or obscene words.
2. Directors
A Singapore company must have at least one resident director. This can be a Singapore citizen, a permanent resident (PR), or a person with an eligible work pass (like an Employment Pass or EntrePass). You can also appoint additional local or foreign directors. All directors must be at least 18 years old.
3. Shareholders
A private limited company in Singapore must have at least one and a maximum of 50 shareholders. Shareholders can be individuals or corporate entities, and they can be local or foreign.
4. Company Secretary
You must appoint a qualified company secretary who is a natural person and a resident of Singapore within six months of incorporation. A sole director cannot also act as the company secretary.
5. Registered Address
Every company must have a physical registered office address in Singapore. A P.O. box is not permitted. The address must be accessible to the public during business hours.
6. Paid-Up Capital
The minimum paid-up capital required is just S$1. This can be in any major currency. You can increase the share capital at any time after incorporation.
Step-by-Step Guide to Registering a Company
The company registration process is fast and can be done entirely online. It usually takes 1-3 business days.
Step 1: Prepare Your Documents and Information
Gather all necessary documents, including the identification details (NRIC/Passport) and residential addresses of all directors and shareholders. If you're a foreigner, you will need to engage a registered filing agent to submit the application on your behalf.
Step 2: Choose and Reserve Your Company Name
Use the ACRA BizFile+ portal to check the availability of your desired company name. Once approved, you can reserve it for a period of time.
Step 3: File the Incorporation Application
Your filing agent will submit the incorporation documents to ACRA. This includes the company's constitution, details of directors and shareholders, and the company's registered address.
Step 4: Receive Your Business Profile and UEN
Once the application is approved, ACRA will issue a Unique Entity Number (UEN) and a Business Profile via email. The UEN is the company's official identification number, crucial for all future transactions and registrations.
Post-Incorporation Steps
After successful registration, there are a few more steps to ensure your company is ready for business.
Open a Corporate Bank Account: With your UEN and Business Profile, you can open a corporate bank account with any major bank in Singapore.
Apply for Licenses and Permits: Depending on your business activities, you may need specific licenses or permits from various government agencies before you can legally operate.
Register for GST (if applicable): If your annual taxable revenue is expected to exceed S$1 million, you must register for Goods and Services Tax (GST).
Appoint a Company Secretary: As a reminder, you must appoint a qualified company secretary within six months of incorporation.
Fees
Starting a company in Singapore involves several fees, which can be categorized into government fees and professional service fees. The total cost will vary depending on whether you are a local or foreign entrepreneur and the services you need.
Government Fees (ACRA)
These are the fixed fees charged by the Accounting and Corporate Regulatory Authority (ACRA).
Company Name Application: S$15
Company Registration: S$300
Total ACRA Fee: S$315
You can also opt for a Special Unique Entity Number (UEN) for a higher fee, ranging from S$1,000 to S$3,000, but this is optional.
Professional Service Fees
As a foreigner, you are legally required to use a registered filing agent to incorporate a company. Even for locals, engaging a professional service provider is highly recommended to ensure compliance and a smooth process. These costs are the most variable and can be a significant portion of your total initial expenditure.
Company Incorporation Service: Many corporate secretarial firms offer a package that includes the ACRA fees, a company secretary for the first year, and a registered address. These packages can range from S$500 to S$1,500, with some starting as low as S$388.
Company Secretary: By law, you must appoint a company secretary within six months of incorporation. The annual retainer fee for a company secretary typically ranges from S$300 to S$1,500, depending on the scope of services included.
Registered Office Address: A physical address is mandatory. If you don't have a local office, you will need to subscribe to a registered address service. This service usually costs between S100toS500 per year, with variations based on additional services like mail forwarding.
Nominee Director: If you are a foreigner and do not have a Singapore-resident director, you must engage a nominee director service. This is one of the most significant costs for foreign entrepreneurs, with annual fees typically ranging from S1,500toS5,000, often with a refundable security deposit.
Bookkeeping and Accounting: These are ongoing costs for business operations.
Bookkeeping: Fees for professional bookkeeping services can range from S$100 to S$300 per month for low-volume transactions and can go up to S$1,200 per month for yearly services.
Financial Statements Compilation: Preparation of financial statements for a small company can cost from S$400 to S$800.
Annual Return Filing: The ACRA fee for filing an Annual Return is S$60. This is typically included in the annual company secretary retainer fee.
Tax Filing:
Corporate Tax Computation and Filing: Fees for this service can range from S$400 to S$800 for companies with simple operations.
GST Registration: If applicable, registering for Goods and Services Tax can cost S$350 or more.
Audit Fees: Auditing is required unless your company is a "small company" and exempt from an audit. Statutory audit fees for a small company can range from S$1,000 to S$4,000. For larger or more complex companies, the fees will be higher.
Estimated First-Year Costs
To give you a clearer picture, here is an estimated breakdown of the first-year costs:
For a Local Founder:
ACRA Fees: S$315
Registered Address Service: S$100 − S$500
Company Secretary: S$300 − S$1,500
Total Estimated Cost: S$715 − S$2,315
For a Foreign Founder:
ACRA Fees: S$315
Registered Address Service: S$100 − S$500
Company Secretary: S$300 − S$1,500
Nominee Director: S$1,500 − S$5,000
Total Estimated Cost: S$2,215 − S$7,315
How Bestar Singapore Empowers Your Business: A Guide to Company Incorporation & Corporate Services
Navigating the complexities of company incorporation and business compliance in a new market can be daunting. Singapore, with its reputation as a global business hub, offers a streamlined process, but having a trusted local partner is a game-changer. Bestar Singapore stands out as a leading corporate services provider, offering a comprehensive suite of solutions to help entrepreneurs, both local and foreign, launch and grow their businesses with confidence.
Seamless Company Incorporation with Bestar
Bestar specializes in making the company registration process in Singapore as seamless as possible. They act as your licensed filing agent, a mandatory requirement for foreign individuals and companies looking to set up a business in the country.
End-to-End Registration: Bestar handles every step of the process, from checking and reserving your preferred company name with the Accounting and Corporate Regulatory Authority (ACRA) to the final submission of all legal documents.
Tailored Packages for Every Need: Whether you are a local resident, a foreign entrepreneur seeking an Employment Pass, or a multinational corporation establishing a subsidiary, Bestar offers customized incorporation packages to fit your specific needs. This includes essential services like providing a nominee director and a registered office address.
Efficiency and Speed: With their deep understanding of local regulations, Bestar’s team ensures a quick and efficient registration process, often completing it within just a few business days, so you can start your operations without delay.
Beyond Incorporation: Bestar’s Full-Spectrum Corporate Services
Setting up a company is just the beginning. Bestar’s true value lies in its role as a long-term partner, providing essential services to ensure your business remains compliant and healthy.
1. Corporate Secretarial Services
This is a legal requirement for every private limited company in Singapore. Bestar's corporate secretarial team acts as your compliance officer, handling all administrative and statutory obligations.
Statutory Compliance: They ensure your company adheres to the Singapore Companies Act, maintaining corporate registers, preparing and filing annual returns, and handling all communication with ACRA.
Administrative Relief: By outsourcing this function, you free up valuable time and resources, allowing you to focus on core business activities while Bestar manages the legal paperwork.
2. Accounting and Tax Advisory
Bestar’s team of professional accountants provides comprehensive financial management services, helping you maintain accurate records and optimize your tax position.
Bookkeeping and Financial Reporting: They offer expert bookkeeping, ensuring your financial records are accurate and up-to-date. This includes preparing financial statements in compliance with local standards.
Strategic Tax Services: Bestar’s tax professionals help with corporate tax planning, computation, and timely filing with the Inland Revenue Authority of Singapore (IRAS), ensuring you meet all your tax obligations and take advantage of available incentives.
3. Nominee Director and Registered Address
These services are particularly crucial for foreign entrepreneurs.
Nominee Director: Singapore law requires at least one director to be an ordinary resident. Bestar provides a professional nominee director to fulfill this legal requirement, ensuring your company is compliant without compromising your ownership or control.
Registered Address: Every company must have a physical registered office address in Singapore. Bestar offers this service, providing you with a credible business address and managing all official mail.
Why Bestar is the Smart Choice for Your Business
Choosing Bestar means choosing a partner with a commitment to excellence and a deep understanding of the Singapore business environment.
One-Stop Solution: Bestar offers a holistic suite of services, from company formation and corporate secretarial to accounting, tax, and even HR support. This integrated approach ensures seamless service delivery and consistency across all your corporate functions.
Expertise and Professionalism: Their team of experts is well-versed in the latest regulations and best practices, providing you with peace of mind that your business is in capable hands.
24/7 Support: Bestar's commitment to client success means they are always available to answer your questions and provide support, no matter the time zone.
By entrusting your corporate needs to Bestar, you can accelerate your business launch and focus on what truly matters: growing your company and achieving your entrepreneurial vision.
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