Starting a business in Singapore seems like a simple checklist. Register with ACRA (Accounting and Corporate Regulatory Authority), appoint a director, and open a bank account. Done, right?

For foreigners, it’s rarely that straightforward. A single mistake during setup can lead to fines, delays, or lost opportunities, often costing over $10,000. Many only discover their errors when compliance notices arrive or deals fall apart.

Here’s what typically goes wrong, why it happens, and how to avoid these costly pitfalls.

ACRA: Rules, Not Hand-Holding

Many foreigners assume ACRA will guide them through registration. That’s a misconception. ACRA is a regulator, not a consultant. Its job is to enforce compliance, not to fix your mistakes.

If you submit forms with errors—like an ineligible director or missing details—ACRA won’t call to help. Your application might be rejected, or worse, approved with issues that trigger penalties later. This leads to delays, extra fees, and stress.

Secretarial services are vital here. They ensure your filings meet ACRA’s strict standards, keeping your company compliant and saving you from costly rejections.

Director Decisions That Backfire

Singapore law 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 meet this rule, but a bad choice can lead to trouble.

If a nominee director fails to handle filings, like annual returns, the company faces fines. In severe cases, it could be struck off the register. An Italian entrepreneur once shared how a low-cost nominee director missed critical filings, resulting in $7,500 in penalties and $4,300 in legal costs to reinstate the company.

Trusted secretarial services help by selecting reliable nominees and ensuring they fulfill ACRA’s obligations, preventing expensive oversights.

Banking Hurdles After Registration

Clearing ACRA’s requirements is only half the battle. Opening a corporate bank account in Singapore can be challenging. Banks often reject applications due to unclear shareholder structures or incomplete paperwork.

These delays can cripple your business. Without a bank account, you can’t invoice clients or pay suppliers, leading to lost revenue. A Malaysian founder lost a $20,000 contract because his bank account took weeks to open, delayed by missing compliance documents.

Secretarial services streamline this process by preparing clear, bank-ready documents and clarifying ownership details, reducing rejections and speeding up the process.

Ongoing Compliance Challenges

ACRA registration is just the start. Companies must file annual returns, maintain shareholder registers, document resolutions, and hold annual general meetings (AGMs). Foreigners often think setup is the finish line, only to miss deadlines and incur penalties.

Fines for late filings start small—$300 for a missed return, $600 for a skipped AGM—but they add up quickly. A year of non-compliance can easily cost $10,000 or more in penalties and fees.

Secretarial services are designed to manage these tasks. They track deadlines, keep records updated, and ensure compliance, letting you focus on growing your business.

The Risks of DIY Setup

Singapore’s online registration system is quick and accessible, tempting foreigners to handle setup themselves. But it doesn’t warn you about structural errors—like incorrect share issuances—that can cause problems later.

A Spanish founder registered his company without help, only to find his share structure scared off investors. Fixing it cost $13,000 in legal fees and delayed his funding round by months.

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

Common Mistakes That Add Up

Here are some frequent errors foreigners make:

• Using a non-local address. ACRA requires a Singapore registered address. Changing it later means extra filings and costs.
• Failing to update share transfers. Unreported changes can lead to fines or disputes where outdated registers take precedence.
• Skipping AGMs or resolutions. Even small companies must comply, or they risk penalties and investor scrutiny.
• Confusing ACRA and IRAS. ACRA handles company compliance; IRAS oversees taxes. Errors with both can lead to double penalties.

These small mistakes can escalate into $10,000+ in costs when fines, legal fees, and lost opportunities pile up.

How to Stay on Track

Partnering with professionals who understand ACRA’s system is the best way to avoid errors. But not all secretarial services are equal. Some focus only on incorporation, while others provide ongoing support. Before choosing, ask:

• Do they handle compliance beyond setup?
• Can they explain rules in clear terms?
• Will they assist with banking and tax filings?
• How do they manage director or share changes?

The right answers indicate a partner who’ll help you avoid long-term headaches.

Final Thoughts

Navigating ACRA’s rules isn’t impossible, but it’s unforgiving for foreigners unfamiliar with the system. Most $10,000+ mistakes stem from small oversights: a bad nominee director, a late filing, or a rejected bank application.

With reliable secretarial services, you can sidestep these traps 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.