Cost of Setting Up a Business in Singapore for Foreigners (2025 Breakdown)

Singapore remains one of the most attractive destinations for foreign entrepreneurs, thanks to its pro-business policies, 100% foreign ownership allowances, and streamlined registration processes. However, understanding the total cost of setting up a business in Singapore is critical for budgeting and compliance. In this guide, we break down the fees, hidden costs, and money-saving tips for foreigners launching a company in 2025.

Introduction: Why Singapore?

Singapore’s reputation as a global business hub is backed by:

• No currency controls for easy capital movement.
• Top-ranked ease of doing business (World Bank).
• Strong intellectual property protections.
• Tax exemptions for startups and access to ASEAN markets.

For foreigners, costs vary depending on business structure, industry, and compliance needs. Let’s dive into the details.

Section 1: Initial Setup Costs

1.1 Government Fees

• Company Name Approval: S$15 (non-refundable).
• Company Registration with ACRA: S$300 for incorporation.
• Business Licenses: From S$100 (e.g., home-based F&B) to S$2,000+ (financial services).

Total: ~S$315–S$2,500+.

1.2 Corporate Service Provider Fees

Most foreigners use agents to navigate local requirements:

• Nominee Director Services: S$1,500–S$4,000/year (mandatory for non-residents without a local director).
• Company Secretary: S$500–S$1,500/year.
• Registered Office Address: S$300–S$1,000/year.

Total: ~S$2,300–S$6,500 initially.

1.3 Paid-Up Capital

• Minimum requirement: S$1 (can be increased later).
• Most startups begin with S$1,000–S$50,000 for credibility.

Section 2: Ongoing Compliance Costs

2.1 Annual Returns and Filings

• ACRA Annual Return: S$60/year.
• Financial Statements: S$1,000–S$5,000/year (auditing required for larger companies).

2.2 Corporate Tax

• Flat Rate: 17% on chargeable income.
• Start-Up Tax Exemption (SUTE): 75% off the first S$100,000 for the first 3 years.

2.3 GST Registration

• Mandatory if annual revenue exceeds S$1 million.
• Registration fee: Free, but compliance costs (e.g., accounting) average S$1,200/year.

Total Annual Compliance: ~S$3,000–S$10,000.

2.4 Employment and Office Costs

• Employment Pass (EP) Fees: SGD 105 (application) + SGD 225 (issuance).
• Foreign Worker Levy: Up to SGD 1,500/month per non-Singaporean employee.
• Office Rent: SGD 50–SGD 500/month for virtual offices (recommended for startups).

Total Annual Operation Costs: SGD 3,000–SGD 15,000+.

Section 3: Hidden Costs for Foreigners

3.1 Employment Pass (EP) Fees

• Application Fee: S$105.
• Issuance Fee: S$225–S$425 (depending on pass duration).
• Foreign Worker Levy: Up to S$1,500/month for non-Singaporean employees.

3.2 Banking Challenges

• Remote Account Opening: Some banks require in-person visits (budget S$500–S$1,000 for travel).
• Minimum Balance: S$3,000–S$50,000 (varies by bank).

3.3 Nominee Director Risks

• Reputable providers charge S$5,000+/year. Avoid cheap services to prevent fraud.

Section 4: Cost-Saving Tips for Foreign Entrepreneurs

1. Use Virtual Offices: Save S$10,000+/year on rent with addresses from S$50/month.
2. Leverage Tax Schemes: Claim the SUTE or Partial Tax Exemption after the startup phase.
3. DIY Registration: Use ACRA’s BizFile+ portal to avoid agent fees (if familiar with local laws).
4. Compare Service Providers: Corporate firms like Vero offer bundled packages at competitive rates.

Conclusion: Is Singapore Worth the Cost?

While setting up a business in Singapore costs S$3,000–S$5,000 initially and S$3,000–S$10,000 annually, the ROI is unmatched. From tax savings to global market access, Singapore provides a launchpad for scalable, future-proof growth.

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