Singapore, renowned for its robust economy, stable political environment, and favourable tax policies, is a beacon for entrepreneurs and businesses looking to expand their operations.
Singapore gained a global reputation, so starting a Singapore company is a wise move for scaling business not only in the Asia Pacific region but all over the world.
Incorporating a company in this vibrant city-state is an attractive proposition for many; however, understanding the different types of costs involved is paramount for any business's successful establishment and running.
This article dives deep into the financial considerations of company incorporation and recurring costs of running the business in Singapore.
It also explores how SAVVY PLATFORM, a comprehensive service provider, can facilitate a seamless transition for businesses aiming to set up in Singapore.
Preliminary Considerations
Before delving into the specifics, it's crucial to grasp the importance of meticulous financial planning when embarking on the journey of incorporating a company in Singapore.
This involves understanding initial incorporation costs, recurring fees, hidden expenses, and how a partner like SAVVY PLATFORM can help optimise these expenses.
Why Singapore?
Singapore's strategic location, coupled with its pro-business environment, makes it an irresistibly attractive destination for businesses.
The straightforward incorporation process, along with a competitive corporate tax structure, significantly contributes to its allure.
Savvy Platform fees as of April 12, 2024; Incorporation fee is the SavvyStart package fee for foreigners
Initial Costs
The initial costs encompass a range of expenses, from government fees for company registration to professional fees for legal and financial advisory services. Let's break down these costs:
Government Fees
The Accounting and Corporate Regulatory Authority (ACRA) charges a nominal fee of SGD 15 (equivalent to EUR 11 or USD 12) for the private limited company name application.
Stamp duty for the subsequent company registration is SGD 300 (equivalent to EUR 210 or USD 225).
Professional Fees
Engaging professionals for legal, tax, and incorporation advice can safeguard against potential pitfalls.
Costs vary significantly based on the service provider’s reputation and the complexity of your business structure.
Savvy Platform aims to cater to small businesses' needs, offering affordable incorporation packages for local and foreign entrepreneurs.
Our SavvyStart package for foreigners includes:
- Initial consultations;
- Government fees of SGD 315;
- Registered Office for one year;
- Provision of Service of Local Secretary for one year;
- Provision of Service of Local Director for one year.
At the same time, we are glad to offer tailor-made solutions for bigger projects with multiple shareholders and complex structures.
Recurring Costs
The journey doesn't end with the company's incorporation. Sustaining a business in Singapore involves several recurring expenses.
Minimum fixed costs
The beauty of running a business in Singapore is that you can start small and keep your costs at the minimum level.
Bare minimum costs include:
- Registered office fee;
- Local Secretary Fee;
- Local Director Fee.
Savvy Platform keeps these fees affordable for everyone.
Savvy Platform Accounting Price chart
Variable costs
These are accounting/bookkeeping fees that depend on the scope of work.
The main factors that form accounting fees are the number of transactions and business turnover.
Companies must adhere to statutory compliance by filing annual returns with ACRA and tax returns with the Inland Revenue Authority of Singapore (IRAS), which incurs nominal fees alongside any professional service charges for assistance in these matters.
Small Singapore businesses prepare their financial statements annually unless they need to register for reporting and paying their Goods and Services Tax (GST).
GST reports in Singapore are to be filed quarterly.
Savvy Platform provides overall accounting, bookkeeping and reporting services.
Once the business is growing, additional expenses may arise from the growing needs.
Office Space
There are plenty of options for office rent in Singapore – starting from work desks in coworking spaces to generous Grade A offices in the Central Business District (CBD).
Savvy Platform can assist you in making a shortlist of available offices according to your preferences regarding location, space and budget.
While renting office space is a critical expense that can make a significant portion of a company's overhead, we assist you in managing your costs at an acceptable level while saving your time on initial research and property checks.
You get 100% of the result by investing only 20% of the time because we do the rest for you.
Staff Costs and HR Management
Big companies can afford HR departments and allocate enormous budgets for them.
For small teams with occasional hiring, Savvy Platform offers HR Management.
We prepare job announcements, publish them and select only suitable candidates for you.
You get a shortlist of 3 to 5 candidates to choose from.
After hiring the person, we submit monthly reports to the Central Provident Fund (CPF) and ensure all mandatory payments are made on time.
HR management will be easier if you use the service along with accounting and bookkeeping—you get all the things done by one contractor, which is more efficient than controlling the proper interaction between the HR department responsible for hiring and the financial department reporting on CPF contributions and paying them.
Other Expenses
Other expenses include business development, travel, advertising, transportation and others.
There are deductible and non-deductible expenses.
Generally, Singapore allows to deduct expenses that are revenue in nature.
The non-exhaustive list of such expenses is as follows:
- Administrative expenses
- Advertising
- Auditors' remuneration
- Bank charges
- Interest expenses
- Intellectual property (IP) licensing expenditure
- Office upkeep
- Periodicals and newspapers
- Postage
- Printing and stationery
- Secretarial fees
- Staff remunerations (salary, bonus and allowances)
- Tax fees (service fees paid to tax agent)
- Telephone bills
- Transport (public transport and goods/ commercial vehicles)
- Travelling
- Wages
- Water and electricity
The expenses that are capital in nature, e.g. amortisation, bad debts, and prepaid expenses, are non-deductible.
That’s why your accounts must be prepared by professionals – it allows you to exclude the risk of penalties imposed by tax authorities for miscalculation your income tax due to attributing expenses to the wrong categories.
How SAVVY PLATFORM Can Help
Savvy Platform is a comprehensive administrative assistant.
We support our customers with all matters – incorporation, provision of Local Director and Secretary, provision of Singapore registered address, accounting and bookkeeping, HR Management, applying for a license, intellectual property registration and so on.
Incorporating a company in Singapore, while attractive, is accompanied by numerous considerations that can be daunting for businesses.
This is where SAVVY PLATFORM steps in to streamline the process.
With our comprehensive suite of services, we assist businesses in navigating these waters.
About Savvy Platform
SAVVY PLATFORM serves to elevate Singapore's profile as a leading destination for entrepreneurial endeavours, catering to a wide range of businesses.
By leveraging its team of experts based in Singapore, SAVVY PLATFORM offers a synergistic approach to company incorporation and management, ensuring businesses can focus on their core objectives.
Services Offered
SavvyStart (Incorporation of Singapore Company)
From handling the administrative paperwork to ensuring statutory compliance, this service simplifies the incorporation process, allowing businesses to hit the ground running.
SavvyStart is a budget- and time-saving solution for starting and running your Singapore company.
Savvy Smart
This section covers tailor-made solutions.
The customer may choose options for the registered address, Local Director and Local Secretary.
Similar to Lego (C) bricks for setting up a business in Singapore.
Savvy Secretary
This section of our website is for additional services - Apostille, Long-term visas, licenses etc.
That's why SAVVY PLATFORM is a comprehensive administrative portal that provides services to ensure that businesses stay compliant with Singapore's regulatory requirements effortlessly.
Cost-Effective Solutions
With SAVVY PLATFORM, the cost of accessing a team of seasoned professionals is equivalent to hiring a novice staff member. This cost-effective solution ensures businesses can allocate their resources more efficiently, focusing on their strategic growth.
Conclusion
Incorporating a company in Singapore is an enticing prospect for businesses worldwide, thanks to the city-state's favourable environment and infrastructure.
However, the associated costs - from one-time incorporation fees to recurring operational expenses and hidden costs - need careful consideration.
SAVVY PLATFORM emerges as a strategic partner, providing a spectrum of services designed to navigate the complexities of setting up and running a business in Singapore efficiently.
Our expertise not only streamlines the incorporation process but also optimizes overall expenses, embodying their commitment to elevate Singapore as a prime destination for entrepreneurs globally.
For businesses seeking to embark on this journey, reaching out to SAVVY PLATFORM can be the first step towards a successful venture in Singapore. Contact their expert team today:
Contact Us:
E-Mail us: iamsavvy@iamsavvy.com.sg
Call us: +65 9711 8886 (Singapore)
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Navigating the financial landscape of incorporating and operating a company in Singapore can be a complex process, but with the proper support and resources, it can also be a highly rewarding one.
