Why 2026 Is a Cost-Effective Year to Incorporate in Singapore

For a singapore small business owner deciding when to incorporate, having clear and reliable cost information is essential. Beyond choosing a legal structure, founders need to understand government fees, tax obligations, and compliance costs. This is where good accounting services in Singapore help businesses plan accurately from the start.

In 2026, incorporating in Singapore remains especially cost-effective due to unchanged statutory registration fees and tax relief measures announced under Budget 2026. Below is a breakdown of the confirmed costs and incentives that new companies should be aware of.

Why Incorporation Costs Are Clear and Manageable in 2026

Confirmed Government Fees for Incorporation

As of 2026, ACRA’s statutory fees for company incorporation remain unchanged. These are fixed government charges payable through the official filing system.

The mandatory fees are:

  • Company name application: SGD 15 (one-time)

  • Company registration fee: SGD 300 (one-time)

  • Total government incorporation cost: SGD 315

  • Typical processing time via BizFile+: 1–2 working days

  • Annual return filing fee after incorporation: SGD 60 per year

These fees apply uniformly to private limited companies and provide cost certainty at the point of incorporation.

✅ Our expert team streamlines your business journey, from company incorporation to tax filing. We offer transparent pricing, dedicated support, and industry expertise for your peace of mind. Discover our all-inclusive incorporation packages here.

Budget 2026 Tax Measures for New Companies

In addition to incorporation costs, Budget 2026 introduced tax relief measures that reduce corporate income tax payable for qualifying businesses.

For Year of Assessment 2026, eligible SMEs may qualify for:

  • A corporate income tax rebate of 40%

  • A rebate cap of SGD 30,000 per company

  • A minimum rebate payout of SGD 1,500 for companies with local employees

Separately, newly incorporated companies continue to qualify for the Start-Up Tax Exemption (SUTE) scheme for their first three years of assessment, subject to meeting the conditions set by IRAS:

  • 75% exemption on the first SGD 100,000 of chargeable income

  • 50% exemption on the next SGD 100,000 of chargeable income

Singapore’s headline corporate income tax rate remains at 17%. In addition, Singapore does not levy capital gains tax or dividend tax under current tax rules.

Timing Considerations That Affect Real Costs

The year of incorporation determines whether a company can benefit from available tax measures.

Incorporating in 2026 allows businesses to:

  • Be eligible for tax relief measures applicable to YA2026, subject to conditions

  • Access the Start-Up Tax Exemption during the first three years of assessment

  • Plan incorporation before any future policy adjustments

  • Budget operating costs during a period of relatively stable wage growth

For businesses that require a nominee director, market rates in Singapore typically range between SGD 2,000 and SGD 7,000 per year, depending on service scope and risk profile. Incorporating during a stable cost environment helps founders plan these recurring expenses more accurately.

Summary of Confirmed Costs and Incentives (2026)

  • Government incorporation cost (ACRA): SGD 315 (one-time)

  • Annual return filing fee: SGD 60 per year

  • Corporate income tax rate: 17%

  • Corporate income tax rebate for YA2026: up to SGD 30,000 (subject to eligibility)

  • Start-Up Tax Exemption: applicable for first three years (subject to conditions)

  • Capital gains tax: not applicable

  • Dividend tax: not applicable

Summary

In 2026, incorporating a company in Singapore remains cost-effective due to fixed government registration fees and clearly defined tax relief measures. With an upfront incorporation cost of SGD 315, continued access to start-up tax exemptions, and corporate income tax rebates announced under Budget 2026, new businesses can manage early-stage costs more predictably. For singapore small business owners who prioritise financial clarity and compliance, incorporating in 2026 offers a stable and well-defined starting point.

Your trusted partner for company incorporation and compliance in Singapore

At Counto, we empower entrepreneurs with seamless business registration and expert company secretary services. Our all-in-one platform ensures your business stays ahead of Singapore’s regulations. Let’s simplify your business journey. Speak to us directly on our chatbot, email [email protected] or use our  contact form to get started.

 

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