Starting a Trading Business in Singapore

Starting a Trading Business in Singapore

Singapore has the advantage of having a strategic location to on its side. Having this advantage has definitely cemented Singapore’s reputation as the ideal trading business hub between the east and the west. Singapore is a dominating force in the import and export trade market with the help of its well-defined procedures in place.

There are approximately 3,000 local and international logistics and supply chain management companies that are operating in Singapore. Shippers doing business in Singapore have the option of choosing from over 200 shipping lines with connections to 600 parts in over 120 different countries around the world.

 

Starting a Trading Business in Singapore

To begin a trading business in Singapore, the business must first be incorporated. All businesses are required to be legally incorporated before official commencement of the business takes place.

Businesses must then be registered with the Singapore Customs department. Business owners and investors would need an active account before they are allowed to import and export goods in and out of Singapore.

The next step to starting a trading business in Singapore requires business owners and investors to apply for the necessary licenses and permits to run its operations. Business would need to obtain the IN Permit through TradeNet before goods can be imported into Singapore.  The import and export of some goods are subjected t the control of the Controlling Agencies, and these items are known as controlled goods.

For high-tech items, which are subjected to export control, the Import Certificate and Delivery Verification, also known as the ICDV, may need to be provided.

READ ALSO:  Starting a Retail and Merchandising Business in Singapore

Business owners looking to start a trading business in Singapore would also need to apply for the Strategic Goods Control TradeNet permit which will allow them to export, tranship or bring in transit any strategic goods.

 

The Types of Taxes Imposed on Trading Businesses in Singapore

There are three main types of taxes and fees imposed on trading businesses in Singapore. They include:

  1. The Customs and Excise Duty Tax. Goods which are subjected to this tax are known as dutiable goods. These include, for example, alcohol, tobacco, motor vehicles and petroleum products.
  2. The Goods and Services Tax. Goods imported into Singapore are subjected to this tax if the goods are meant for local consumption. The tax is administered by the Inland Revenue Authority of Singapore and collected by the Singapore Customs.
  3. The Singapore Customs Fees. These are the procedural and administrative fees charged by the Singapore Customs department.

Beginning a trading business in Singapore is a process that involves several steps and paperwork that needs to be sorted through. Because of the different types of licenses involved, you would need to enlist the services of professional advisors to ensure the processes goes quickly and smoothly.

Read more about Guide for Commodity Trading Business in Singapore from 3E Accounting Pte Ltd, Singapore.

Professional advisors like 3E Accounting Pte Ltd, Singapore – Corporate Service Provider are on hand to assist business owners and investors looking to start a trading business in Singapore with all the professional advice needed. For more information on how we can assist your business venture, visit our website or contact us today.