How much capital do you need for a Healthcare Business in 2025?
By Medinex Team
April 29, 2025
Why should you invest in setting up healthcare services business in Singapore?
While the current global trade wars are rather unsettling, the outlook for Singapore’s healthcare sector continues to be strong over the next few years due to the following factors:
1Singapore’s rapidly aging population will lead to increase in increased demand for services across primary care, specialist services as well as long-term care.
2Singapore’s National Health Expenditure is projected to increase significantly reflecting the government’s commitment to improving healthcare infrastructure and services.
3Initiatives like HealthierSG indicate a strong government focus on preventive care and strengthening primary healthcare and related services.
4Singapore is a well-established medical hub, attracting more than 500,000 medical tourists annually who account for just under 4% of overall tourism spending ($1.3 billion).
What are the key initial set-up
costs you should consider?
1
1. Business Registration Costs
The cost of business registration in Singapore in 2025 is affordable but varies depending on the type of business structure you choose. For your convenience, here’s a breakdown of the standard government fees associated with two of the main business types.
Name Application Fee: S$15
Name Application Fee: S$15
Registration Fee: S$100 for 1 year
Registration Fee: S$300
Renewal Fee: S$30 per year
(if you choose the 1-year registration initially)
Total Initial Government Fees: S$315
Apart from the registration fees charged by the government, there are also other compliance services you need to appoint a professional firm to assist you with.
Name Application Fee: S$15
Registration Fee: S$100 for 1 year
Renewal Fee: S$30 per year
(if you choose the 1-year registration initially)
Name Application Fee: S$15
Registration Fee: S$300
Total Initial Government Fees: S$315
Apart from the registration fees charged by the government, there are also other compliance services you need to appoint a professional firm to assist you with.
2
2. Other Compliance Services
Beyond the registration fees, it is important to select a trustworthy company with good experience, and track records working with clients in the healthcare sectors to help you with the incorporation, accounting and auditing if you intend to outsource these services.
Company Secretary
Typically ranging from S$800 to S$1,200 annually. The appointment of a company secretary is mandatory within 6 months of incorporation.
Nominee Director (if required)
Between S$3,000 to S$5,000 per year if there isn't a resident director.
Incorporation Services
A one-time fee that varies from S$600 for basic registration to S$2,000 for a more comprehensive package. These fees exclude government business registration fees.
Accounting and Tax Services
Costs depend on the company's business size, transaction volume, and accounting complexity, ranging from several thousand dollars annually.
Audit Fees (if applicable)
Starting from around S$4,000 per audit, depending on the complexity of the requirements and scale of business. Small companies meeting certain criteria may be exempt from audit requirements.
Opening a Business Bank Account
Fees vary between banks; consider account maintenance fees and transaction costs.
3
3. Other Potential Incorporation Costs
The Healthcare Services Act (HCSA) was put into effect on 6 January 2020 to regulate healthcare services in Singapore. Under HCSA, healthcare providers need to apply for approval to hold licenses for the Licensable Healthcare Services (LHS) they provide as well as the appropriate Mode of Service Delivery (MOSD) applicable for their LHS.
License fees are:
- Based on a standard 2-year Licence Tenure
- Generally based on a per-service and per-premises/conveyance basis
- Include standard administrative fees
As the license fees vary according to the specific healthcare service and there are various fee bundles available, it is important for you to ascertain the licenses that applicable to your business through this link: https://www.hcsa.gov.sg/about-us/3-overview-of-licensing-fees
Get a good sense of your recurring costs.
In the following section, we will highlight some of the important recurring costs you need to include in your budgeting. If you are keen to explore to our Medical Clinic Set-up Service, do fill up the form below.
1
1. Office/Clinic Set-up and Rental Cost
Whether you are considering renting or leasing a commercial space, it is important for you to consider the security deposits (2 to 3 months’ rent), agent fees, renovation costs, furniture, medical equipment costs, as well as IT equipment, software, Clinic Management System set-up costs, etc.
Beyond the clinic set-up costs, one of the large recurring costs is rental and it varies depending on location, type of space (fully fitted or not), size, amenities and market conditions. Based on Listings on property portals in April 2025:
General medical spaces can range from S$7 psf to S$18 psf per month. E.g. 1500 sq ft space can range from S$10k per month upwards.
Prime Medical Hubs such as Novena Medical Centre and Camden Medical Centre can range around S$16 psf to S$40 psf per month.
2
2. Monthly Operational Costs
Your start-up capital should be able to sustain your healthcare business for at least 3 to 6 months. These operational costs include employee remuneration, utilities and maintenance, sales & marketing costs and more. Since the labour costs make up the largest part of the monthly operating costs, we provided estimates for common job functions to help you get a rough sense of the overall costs. It is imperative that you make an accurate analysis based on the specific positions you need for your business.
Salaries
Do note the following monthly salary estimates do not include CPF contributions, allowances, bonuses, overtime, insurance, employee benefits etc.
- Clinic Receptionist: S$2300 to S$2800
- Entry-level Nurse: S$2600 to S$3300
- Entry-level Pharmacist: S$2900 to S$4800
- Newly Qualified General Practitioner: S$80 to S$130 per hour
3
3. The Importance of Thorough Planning
As you would know by now, the start-up capital estimate is largely dependent on the specific healthcare services and the scale of the business you are exploring. Through this article, we provided insights on the various areas you need to consider to have a good financial analysis of the business cost. If you need further consultation, do not hesitate to speak to us by sending us an email at contact@medinex.com.sg
Tags:
Tag:
Start-up Capital
Healthcare Services Business
Business Set-up Costs
Initial Set-up Costs
Recurring Costs
Healthcare Licensing Costs
Operational Costs
Labour Costs
Rental Costs
Incorporate Services
Secretarial Services
Accounting & Taxation Services
Business Consulting Services
