Introduction
Singapore has become one of the most attractive business hubs in Asia, known for its strong economy, pro-business regulations, and strategic location. However, setting up a physical office in the city-state can be expensive, especially for startups, freelancers, and foreign entrepreneurs. This is where virtual offices come in as a cost-effective alternative.
A virtual office allows businesses to maintain a professional presence in Singapore without renting a physical workspace. But how much does it actually cost to set up a virtual office in Singapore? This article explores the different pricing tiers, factors affecting costs, and additional expenses you should consider.
What Is a Virtual Office?
A virtual office provides businesses with essential services such as a registered business address, mail handling, and sometimes call answering or meeting room access—without requiring a physical office lease.
These services are particularly useful for:
Startups and small businesses
Freelancers and remote workers
Foreign companies entering the Singapore market
With a virtual office, businesses can register with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) and maintain a credible corporate image.
Average Cost of a Virtual Office in Singapore
The cost of a virtual office in Singapore varies widely depending on the services included and the provider. On average, businesses can expect to pay:
Basic packages: SGD $40–$80 per month
Standard packages: SGD $100–$200 per month
Premium packages: SGD $250–$500 per month
More broadly, many providers offer virtual office services ranging from SGD $50 to $150 per month, depending on location and features.
These price ranges make virtual offices significantly more affordable than renting physical office space in Singapore’s central business district (CBD).
Breakdown of Virtual Office Pricing Tiers
1. Basic Virtual Office Packages
Basic plans are the most affordable option and typically include:
A registered business address
Mail notifications or self-collection
Some providers offer extremely low-cost plans starting from just a few dollars per month or under SGD $100 annually.
Typical price range:
SGD $5 to $50 per month
These plans are ideal for entrepreneurs who only need a legal business address and minimal services.
2. Standard Virtual Office Packages
Standard packages offer more comprehensive features, such as:
Mail forwarding services
Mail scanning and email notifications
Shared fax or phone number
Typical price range:
SGD $50 to $200 per month
These packages are suitable for small businesses that need more active communication support and convenience.
3. Premium Virtual Office Packages
Premium plans provide advanced services and greater flexibility, including:
Dedicated phone lines and receptionist services
Access to meeting rooms or coworking spaces
Call handling and forwarding
Administrative support
Typical price range:
SGD $200 to $500+ per month
High-end providers may charge over SGD $200 per month for a full-service virtual office with premium locations and amenities.
These packages are best for businesses that frequently interact with clients and require professional support services.
Key Factors That Affect Costs
1. Location of the Business Address
A prestigious CBD address (e.g., Marina Bay or Raffles Place) typically costs more than addresses in suburban areas. Premium locations enhance brand image but come at a higher price.
For example:
Non-CBD addresses: SGD $6–$15/month
CBD addresses: SGD $10–$50/month
2. Range of Services Included
The more services included, the higher the cost. Key services that influence pricing include:
Mail forwarding and scanning
Call answering and forwarding
Meeting room access
Administrative support
Basic plans are cheap because they offer minimal services, while premium plans bundle multiple features.
3. Frequency of Usage
Some providers include limited free access to meeting rooms or coworking spaces. Additional usage often incurs hourly or daily fees.
Businesses that frequently host clients may need to budget extra for these services.
4. Provider Reputation and Brand
Established providers with premium locations and strong reputations often charge higher fees. These providers may offer better service quality, reliability, and brand prestige.
Additional Costs to Consider
While virtual offices are generally affordable, there are additional costs that businesses should be aware of:
1. Mail Handling Fees
Even if mail forwarding is included, there may be extra charges such as:
Per-mail forwarding fees
Postage costs
Mail scanning fees
For example, some providers charge a small fee per forwarded mail plus postage.
2. Setup Fees and Deposits
Although many providers advertise “no setup fees,” some may require:
Security deposits
Prepaid credits for mail forwarding
3. Meeting Room Usage
Premium packages may include limited free hours, but additional usage is typically charged separately.
4. Call Handling Charges
If your plan includes a business phone number, you may incur:
Per-minute call charges
Fees for call forwarding
Cost Comparison: Virtual Office vs Physical Office
One of the biggest advantages of a virtual office is cost savings. Renting a physical office in Singapore can cost thousands of dollars per month, especially in prime locations.
In contrast:
Virtual office: SGD $5–$500/month
Physical office: SGD $2,000+/month (typical estimate)
This makes virtual offices an attractive option for businesses looking to minimize overhead costs while maintaining a professional image.
Is a Virtual Office Worth the Cost?
For many businesses, the answer is yes. A virtual office offers several advantages:
Lower operational costs
Professional business presence
Flexibility and scalability
Compliance with local regulations
However, it may not be suitable for businesses that require:
Daily physical workspace
On-site staff or equipment
Frequent in-person collaboration
Conclusion
The cost of setting up a virtual office in Singapore can range from as little as a few dollars per month to several hundred dollars, depending on the services and provider. Basic packages are ideal for startups on a tight budget, while premium plans cater to businesses needing full-service support.
Ultimately, the right virtual office depends on your business needs, budget, and growth plans. By carefully evaluating the available options and understanding the associated costs, businesses can take full advantage of Singapore’s dynamic business environment without the high cost of a physical office.