Cost of Incorporating a Company: A Detailed Guide

Incorporating a company is a significant step towards establishing a legal entity for your business. The cost associated with this process can vary based on factors such as the jurisdiction, type of company, and additional services required. Let’s delve into the details, and advantages, and answer frequently asked questions about the cost of incorporating a company.

Cost Breakdown

a. ACRA Business Registration Fee

The ACRA (Accounting and Corporate Regulatory Authority) business registration fee is the primary cost of incorporating a company in Singapore. The fee varies based on the type of business entity you choose. For instance:

Private Limited Company: As of the last update in September 2021, the registration fee for a private limited company is approximately SGD 300.

b. Company Name Reservation Fee

Before incorporating, you might want to reserve a company name. This incurs a separate fee, usually around SGD 15.

c. Professional Service Fees

Many entrepreneurs choose to engage professional firms that specialize in company registration. These firms offer various packages, including preparing documents, providing a registered address, and assisting with the application process. The cost of these services can range from a few hundred to several thousand dollars, depending on the level of assistance required. Our clients often express their satisfaction with these services, as they find it relieves them of numerous hassles. This allows them to dedicate their time to working on their businesses, confident that professional companies offer excellent end-to-end service.

d. Additional Services and Capital Requirements

Depending on your business’s nature, you might require additional services such as obtaining licenses or permits. These can incur extra costs. Additionally, consider having sufficient capital to fund your business operations after incorporation.

Advantages of Professional Service Engagement 

• Expertise: Professional firms possess in-depth knowledge of the incorporation process, reducing the chances of errors and delays.
• Time Savings: Engaging experts allows you to focus on other aspects of your business while they handle the administrative tasks.
• Compliance: Professionals ensure that your company adheres to all legal requirements, reducing the risk of non-compliance.
• Efficiency: The experience of professional firms often streamlines the incorporation process, saving valuable time and effort.
• Limited Liability: One of the primary advantages is that the owners or shareholders of the company have limited liability. This means their personal assets are generally protected from business debts and legal actions against the company.
• Separate Legal Entity: A company is considered a separate legal entity from its owners. This separation provides clarity in ownership, management, and accountability.
• Access to Capital: Incorporating can make it easier to raise capital by selling shares or attracting investors. It can also improve the company’s ability to secure loans or credit.
• Perpetual Existence: A company can have a perpetual existence, meaning it can continue to operate even if shareholders change or pass away. This stability can be advantageous for long-term business planning.
• Tax Benefits: Depending on the jurisdiction and type of company, there may be tax advantages, such as lower corporate tax rates or deductions for business expenses.
• Enhanced Credibility: Being a registered company can enhance the credibility of your business in the eyes of customers, suppliers, and potential partners.
• Transfer of Ownership: Shares in a company can be easily transferred, allowing for the sale or transfer of ownership without disrupting business operations.
• Employee Benefits: Companies can offer employee benefits such as retirement plans, stock options, and health insurance, which can help attract and retain talent.
• Brand Protection: Registering your company name and brand can protect your intellectual property and prevent others from using it.
• Global Expansion: If you plan to expand your business internationally, having a registered company can make it easier to establish a presence in other countries.