Are you planning to start a new company set up in Singapore?
If so, there are a lot of things that you need to be preparing. You need to think about what your business will be about, who your customers are, and what will be your products and services. Most of all you need to prepare for the costs that you need to invest to form your company.
When you start business in Singapore, the requirements are very direct and somewhat easy to obtain. Even if you are a foreigner, you will also have the same benefits as that of a Singaporean business owner. You will also have the same amount of costs to pay. That is why it is important to know how much will be the costs of forming a new company in Singapore. How much budget is needed for you to be able to launch your business? Thus, here are the costs and budget when starting a new company set up.
#1 - Registration costs
The first costs that you will encounter when you start business in Singapore are the registration costs. All businesses in Singapore need to be registered at ACRA’s database. The registration process is done online. The first thing you need to register is the company name. That registration process will cost you a minimum of S$15.
The next one is the company incorporation application. To be incorporated in Singapore, you need to pay S$300 to ACRA. Although you won’t be launching your company yet, you need to prepare the paid-up capital. It only takes 1 Singaporean dollar capital to get approved for registration. However, keep in mind that SG$1 isn’t enough to be able to start a new company set up in Singapore. You can either increase the capital before you apply or afterward.
#2 - Bank setup costs
Although the paid-up capital that you need is only SG$1, you must have a business bank account in Singapore. This is where the money you used for business transactions will be stored. This is also where your customers can deposit their payments when they acquire your products and services. A bank account is also a requirement for third-party payment setups and loans. Thus, it is absolutely necessary when you start business in Singapore.
Banks have different initial deposit requirements and maintenance fees. Usually, a business digital account will require an initial deposit of S$1,000 and a monthly fee of around S$15-S$20. You can expect to spend at least S$1,200 a year to have a bank account for your new company set up in Singapore.
#3 - Office setup costs
The next cost that you need to cover when you start business in Singapore is the office setup costs. Singapore has a very expensive real estate market which is why rental costs for offices are costly. Most businesses will start with a remote office. However, there are times that remote offices can’t be an option.
The next economic option is to co-share an office space. In Singapore, a single work desk in an office space can cost at least S$250 as monthly rent. If you prefer a dedicated workspace in the office for rent, you will need at least S$400. However, the good news is that you won’t have to spend much on the utility bills since it will be shared among the other office space renters. Thus, if you need a cost-effective office for your new company set up in Singapore, try looking for co-working spaces.
#4 - Staff hiring costs
Next company startup costs are not necessarily needed immediately. However, you should definitely prepare for it. That is the cost of hiring staff members when you start business in Singapore. A company needs at least one Singaporean director and a corporate secretary that is also a Singapore citizen.
A director’s salary can cost at least S$120,000 a year. While a company secretary will need S$30,000 a year. Aside from that, you also need other staff members for your new company set up in Singapore. It is good to take note that the minimum wage in Singapore is S$1,300. Thus, plan your salary budget for your Singapore company accordingly.
Incorporate your company through WLP Group
When you start business in Singapore, you will need to prepare the amount you are going to invest in. This article has given you an idea of what costs to expect so you can plan your budget well. Company incorporation is not difficult but it can be a lot of work since you will have to prepare for the launching of your company. The best way to lessen your burden is by hiring a company incorporation service firm. If you are looking for one, inquire at WLP Group by heading to the contact page of their website.