One of the most common questions we get from new entrepreneurs is: “Can I really start my company with just $1?”

The short answer is yes. According to ACRA (Accounting and Corporate Regulatory Authority) regulations, the minimum paid-up capital required to register a private limited company in Singapore is indeed S$1.

However, while the capital requirement is low, the actual cost to set up and maintain a compliant business is different. Many first-time business owners are caught off guard by “hidden” administrative fees that are mandatory under Singapore law.

In this guide, we break down the real costs of incorporating in 2025, so you can budget accurately without surprises.

The $1 Paid-Up Capital: Myth vs. Reality

In Singapore, Paid-Up Capital refers to the money shareholders have injected into the company for shares.

You can technically register a company with S$1. This is perfectly legal and very common for startups that want to get their Unique Entity Number (UEN) quickly without locking up cash.

Why you might want more than $1 later

While $1 gets you started, keeping your capital that low indefinitely can cause practical issues:

  • Bank Credibility: Some banks are hesitant to open corporate accounts for companies with only $1 in capital, as it signals low commitment.

  • Vendor Trust: Suppliers checking your business profile (BizFile) may be reluctant to offer credit terms.

  • Employment Passes: If you plan to apply for an Employment Pass (EP) for yourself or foreign staff, a low paid-up capital can negatively affect your assessment under the MOM frameworks.

Expert Tip: You can start with $1 during incorporation and increase it later when you are ready to inject funds. This process requires filing a “Return of Allotment of Shares” with ACRA.

The Real “Hidden” Costs of Incorporation

Even if your capital is $1, you cannot avoid the government and compliance fees. Here is what you actually need to pay to get your company running.

1. Mandatory ACRA Fees

These are non-negotiable fees paid directly to the government:

  • Name Application Fee: S$15

  • Registration Fee: S$300

  • Total Government Fee: S$315

2. Company Secretary (Required by Law)

Under the Singapore Companies Act, every company must appoint a qualified Company Secretary within 6 months of incorporation.

  • The Rule: This person must be a Singapore resident. You (the director) cannot act as the company secretary if you are the sole director.

  • The Cost: Unless you have a partner who is a resident and willing to take on the legal liability, you will need to engage a Corporate Secretarial Service. This typically costs between S$300 to S$800 per year depending on the complexity of your company.

3. Registered Local Address

You cannot use a P.O. Box as your company address. It must be a physical local address where official government mail is delivered.

  • The Problem: Many HDB owners or tenants face restrictions on using their home address for business.

  • The Solution: Most businesses use a professional Registered Office Address service. This protects your privacy (so your home address isn’t on public records) and ensures you never miss important mail from IRAS or ACRA.

Ongoing Maintenance Costs (The “Invisible” Expenses)

Incorporation is just day one. To keep your company “live” and avoid fines, you must budget for annual compliance.

Annual Return (AR) Filing

Every year, you must file an Annual Return with ACRA. This confirms your company details are up to date.

  • Filing Fee: S$60 per year (paid to ACRA).

  • Penalty: Late filing penalties can go up to S$600 per offence.

Tax Filing (ECI and Form C-S)

Even if your company made zero profit, you are legally required to file a tax return with IRAS.

  • ECI (Estimated Chargeable Income): Must be filed within 3 months of your Financial Year End.

  • Form C-S/C: The actual corporate tax return.

  • Many small business owners try to do this themselves but make errors that lead to fines. It is often more cost-effective to outsource this to a professional Accounting and Taxation Service provider.

Special Note for Foreigners: The Nominee Director

If you are a foreigner living overseas (without a Singpass), you cannot self-register a company. You are required by law to have at least one Locally Resident Director (a Singapore Citizen, PR, or EntrePass holder).

If you do not have a local partner, you will need to engage a Nominee Director Service. This is a service where a professional acts as your local director to meet compliance requirements. This is a significant additional cost that foreign entrepreneurs must factor in.

Conclusion: So, How Much Does It Really Cost?

While the S$1 capital headline is true, the real cost to set up a compliant, fully functioning company in Singapore is higher.

For a local entrepreneur, you should budget for the ACRA fees (S$315) plus the cost of a Company Secretary and Registered Address. For foreign entrepreneurs, the costs will include Nominee Director services.

Ready to start your business the right way?

Don’t let the paperwork overwhelm you. At Excellence Singapore, we provide transparent, all-in-one incorporation packages that cover all these “hidden” requirements.

Click here to view our Singapore Company Incorporation Packages or Contact Us for a free consultation.