Launching a company in Singapore looks like a breeze on paper. File with ACRA (Accounting and Corporate Regulatory Authority), appoint a director, and open a bank account. Simple, right?

For foreigners, it’s often anything but. One error during setup can lead to fines, delays, or lost deals, often costing over $10,000. Many only discover their mistakes when compliance issues or rejections start piling up.

Here’s what goes wrong, why, and how to avoid these expensive pitfalls.

ACRA: Regulator, Not Mentor

Many foreigners expect ACRA to guide them through registration. That’s a mistake. ACRA is a regulator, not a consultant. Its role is to enforce rules, not to fix your mistakes.

If you submit forms with errors—like an unqualified director or missing information—ACRA won’t call to correct you. Your application might be rejected, or worse, approved with issues that lead to penalties later. This means delays, fees, and stress.

Secretarial services are essential here. They ensure your filings align with ACRA’s requirements, keeping your company compliant and avoiding costly rejections.

Director Choices That Sting

Singapore requires at least one resident director—a Singapore citizen, permanent resident, or Employment Pass holder with a local address. Foreigners often use nominee directors to comply, but a bad pick can spell trouble.

If a nominee director neglects duties like filing annual returns, the company faces fines. In extreme cases, it could be deregistered. A Brazilian founder once shared how a cheap nominee director missed key filings, leading to $7,200 in penalties and $4,500 in legal costs to reinstate the company.

Trusted secretarial services help by vetting nominees and ensuring they fulfill ACRA’s obligations, preventing costly surprises.

Banking Struggles After Setup

Getting past ACRA is only part of the challenge. Opening a corporate bank account in Singapore can be tough. Banks often reject applications due to unclear ownership structures or incomplete paperwork.

These delays can hurt your business. Without a bank account, you can’t invoice clients or pay vendors, leading to lost revenue. A Polish founder lost a $22,000 deal because his bank account took months to open, delayed by missing compliance documents.

Company secretarial services streamline this by preparing clear, bank-ready documents and explaining ownership details, reducing rejections and delays.

Ongoing Compliance Oversights

ACRA registration isn’t a one-time task. Companies must file annual returns, update shareholder registers, record resolutions, and hold annual general meetings (AGMs). Foreigners often think setup is the finish line, only to miss deadlines and face penalties.

Fines start small—$300 for a late return, $600 for a missed AGM—but they escalate quickly. A year of non-compliance can easily cost $10,000 or more.

Secretarial services manage these tasks, tracking deadlines, maintaining records, and ensuring compliance, so you can focus on your business.

The Risks of Going Solo

Singapore’s online registration system is fast, tempting foreigners to handle setup themselves. But it doesn’t flag structural errors—like incorrect share allocations—that can cause issues later.

A Finnish founder registered his company without help, only to find his share structure blocked a funding deal. Fixing it cost $13,500 in legal fees and delayed his plans by months.

Engaging secretarial services early ensures your company is set up correctly, saving you from costly restructurings.

Common Traps to Watch For

Here are frequent errors foreigners encounter:

  • Using a foreign address. ACRA requires a local Singapore address. Changing it later incurs fees.
  • Not updating share transfers. Unreported changes can lead to penalties or disputes where old registers hold legal weight.
  • Skipping AGMs or resolutions. Even startups must comply, or they risk fines and investor concerns.
  • Confusing ACRA and IRAS. ACRA oversees company rules; IRAS handles taxes. Errors with both can lead to double penalties.

These small errors can balloon into $10,000+ in costs when fines, legal fees, and lost opportunities add up.

How to Get It Right

Working with professionals who know ACRA’s system is key. But choose carefully—some secretarial services only handle incorporation, while others offer ongoing support. Ask:

  • Do they cover compliance beyond setup?
  • Can they explain rules clearly?
  • Will they help with banking and tax filings?
  • How do they handle director or share changes?

Strong answers signal a partner who’ll save you from long-term issues.

Closing Thoughts

ACRA’s system isn’t overly complex, but it’s unforgiving for foreigners who miss the details. Most $10,000+ mistakes come from small oversights: a bad nominee director, a late filing, or a rejected bank application.

With reliable secretarial services, you can avoid these pitfalls and build your business on a solid foundation. Get it right, and you’ll save time and money. Get it wrong, and you’ll be fixing errors instead of growing your company.