Important Things to do Before Starting a Trading Company in Singapore

Starting a trading company in Singapore offers lucrative opportunities due to its robust economy and strategic location. This comprehensive guide will walk you through the essential steps to set up your trading business in Singapore, including crucial details on company registration, customs requirements, licences, and permits.

How to Start a Trading Business in Singapore?

Step 1: Register Your Trading Entity

To begin your journey into the trading world, you must first register your business entity in Singapore. While there are various business structures available, setting up a private limited company is the most common choice.

This process involves registering with the Accounting and Corporate Regulatory Authority (ACRA) through the BizFile+ platform. Upon successful registration, your company will be assigned a Unique Entity Number (UEN).

Step 2: Activate Your Entity’s Customs Account

Before engaging in any import or export activities, it is imperative to activate your entity’s Customs Account with the Singapore Customs. The activation of this account is essential for processing import and export permits efficiently. The process is free and can be initiated once you have successfully registered your entity.

You will need your UEN and must provide details of a primary and secondary contact person who will receive official correspondence from the Singapore Customs. Documentation such as copies of the applicant’s NRIC and the company’s certificate of incorporation may be required. Typically, you will receive notification of the application outcome within 4 working hours.

Step 3: Check for Controlled Goods

Certain goods, such as food products and medicines, are categorised as “controlled” goods, subject to additional regulations by relevant agencies in Singapore. For instance, importers and exporters of food products must adhere to regulations established by the Singapore Food Agency.

You can determine if your goods fall into this category by accessing the classification information of your products through the Singapore Customs HS/CA portal. This portal also provides information on the relevant agency overseeing controlled goods, allowing you to inquire further about specific requirements. Refer to the Singapore Customs’ website for comprehensive guidance on using this portal effectively.

Step 4: Apply for Customs Permits

For all goods, whether controlled or not, importers and exporters must obtain Customs Import and Export Permits through Singapore Customs. These permits are essential for facilitating the smooth flow of goods in and out of Singapore. To apply for these permits:

a. Hire a Declaring Agent: Permit applications can only be submitted by Declaring Agents. A Declaring Agent is an entity authorized to apply for permits on behalf of a trading company. You may choose to appoint a Declaring Agent for a service fee.

b. Register as a Declaring Agent: Alternatively, you can register yourself as a Declaring Agent. Keep in mind that this option entails rigorous criteria set by the Declaring Agent Governance Framework (DAGF).

c. Access the TradeNet System: Permit applications are processed through the Singapore Customs’ TradeNet system. You can access this system through approved software vendors or the government’s front-end application.

Once your permit application is approved by Singapore Customs, you can initiate your import and export activities. Ensure that you monitor the validity period of your permits, which depends on factors like the nature of goods and the place of release and receipt.

Applying for Inter-Bank GIRO (IBG)

To fulfil your obligation of remitting payments for duties, taxes, fees, penalties, and other charges related to services provided by Singapore directly from your bank account to Singapore Customs, you must establish an Inter-Bank GIRO (IBG) arrangement.