How to Set up an Import and Export Company in Singapore?

Are you interested in expanding your trading business? or

Do you want to successfully set up an import and export company in developed country?

We, Grandrapid, can help you to setup an import and export company in Singapore.

Singapore is a good country to start a business because of its low level of corruption, good geographical location, secure infrastructure and good tax laws for the economy.

After reading the following information, we hope you will understand the requirements for setting up an import and export company.

(1) Company’s Registration

If you want to learn the full requirements to register a company in Singapore

Please click https://www.stratecx.com/post/how-to-set-up-local-company-in-singapore

(2) Singapore Custom Activation

Both import and export companies in and out of Singapore are required to have a Singapore Custom Account to obtain a permit.

(3) Apply for inter-Bank GIRO Account

You also need to register an Inter-Bank GIRO (IBG) account to pay your taxes, fees and other charges. Through this account, you can make payment directly to the Singapore Custom Department with your bank account.

(4) Financial Security

After receiving the IBG, the importer or declaring agent may arrange financial security for certain matters. The agent must apply on behalf of the importer in applying for a license, certificate, and permit. A banker’s Guarantee, Finance Company Guarantee, or an Insurance Bond may be used for this purpose. The security required to apply for a permit may vary depending on type of goods and trade route.

(5) Applying for permits and licenses

IN permits are required for goods imported to Singapore and OUT permits are required for goods exported from Singapore. Permit can be obtained online via TradeNet.

• Import/Export of Controlled goods

Goods under the control of controlling agencies are called controlled goods. For example; tobacco products; medicines; petrochemicals, animals and food products. In addition to the usual IN and OUT Permits, controlled goods require additional permits from the appropriate controlling agencies. Such permit needed to be applied online via TradeNet. If you are using a freight forwarder or cargo agent, they may assist with the application of this additional permit too.

•Import of High Technology Goods

Some countries impose stricter control of export of high-technology goods.

For some products, the Singapore importer needs to request an Import Certificate and Delivery Verification (ICDV) from the exporter. These ICDV applications can be obtained from Singapore Custom. If these items are imported directly to Singapore, and then these items should not be diverted to other countries.

•Export of Local Goods

Importers are required to obtain a Certificate of Origin (CO) from Singapore Exporters. This certificate is proof that the goods are exported from Singapore. The certificate is also available through TradeNet. There are two types of Certificate of Origin

(i) Ordinary Certificate of Origin

(ii) Preferential Certificate of Origin

•Transit in Singapore

If your company has goods transiting through Singapore, the company must be registered as transshipment agent with Singapore Custom. To note: the business activity that you registered originally in ACRA should also be shipping agent, air cargo agent or freight forwarder. If your application is approved, you will proceed with a transshipment permit. As per normal procedure of importing or exporting goods, you will need to check if your goods are controlled and furnish financial security. You may proceed application for Customs Transshipment Permit and prepare documents for cargo clearance.

If your company does not have goods transiting through Singapore, only the import, export or transit procedures fall under the jurisdiction of Singapore’s trade and relevant customs legislation, in cases where goods are taken into, out, or via Singapore’s territory. However, when a Singapore registration company engages overseas trade or transit goods through another state’s territory, these will be regulated by the respective country’s legislation. If your business is to buy and sell goods overseas regularly, you need to check the respective country’s laws. According to the oversea activities, your

company may need to do legal formation incorporating a subsidiary company, through a representative office or other legal forms. Before that check all required country’s tax, corporate legislation and national customs.

(6) Customs and Excise Duty

Some goods are subject to customs duty. For example: the import duty must be paid on imports of specific types of goods such as liquors, tobacco products, motor vehicles and petroleum products, the rate being different for each type.

(7) Goods and Services Tax (GST)

Neither GST nor duty is levied when exporting from or transiting goods through Singapore. GST is applied to all goods imported for local consumption. Currently, it is 7% of the value. According to the Inland Revenue Authority of Singapore (IRAS) regulations, the GST is collected by the Singapore Customs Department. GST will be refunded for goods which are not for local consumption.

(8) Singapore Custom Fees

According to the rules and regulations, taxes are levied on Singapore Customs. All these payments can be easily and quickly linked to your bank account through GIRO.

(9) Storage Charges

When it comes to storing goods, you can choose to keep them at Licensed Warehouses, Zero-GST Warehouses or Free Trade Zone Warehouses.

(10) Financial Consideration

Financial consideration is one of the factors you have to think about setting up import and export company in Singapore. Opening the corporate bank account in Singapore, seeking business loan offered by most Singapore banks. Letter of Credit is the common practice in Trading industry to obtain bank grantee for making payment.

There is global trade programme which reduces corporate tax rate 5% to 10% on qualifying trading income for three or five years and trade credit insurance scheme to protect itself against non-payment by buyers, enabling the company to acquire new customers with greater confidence and reduced default risk.

If you want to know more details, feel free to contact us and discuss.

Try your first step with Stratecx.

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