How to Open a Land Transportation Company in Singapore
Singapore is located in a very strategic area that makes it a great hub for transportation services, international freight forwarding, and other economic activities. Over the past decades, the government has invested a lot of money on cultivating a world-class logistics industry, building modern roads, bridges, highways, airports, harbours, and other transportation services.
Transportation logistics in Singapore connects the different districts, and offers value-added services in transporting people and goods. Individual solutions cover the planning and routing of transport, and the logistics industry is experiencing an increasing demand for transportation services.
Besides transportation logistics, Singapore is seeing an increase in the demand for warehousing services, freight forwarding services, and logistics management services for deliveries around the country as online shopping, courier and delivery services, and contract logistics are becoming standard norms.
Land transport companies are established in the country to meet the increasing demands in supply chain management. These companies not only make delivering goods more efficient and hassle-free, but also boost the growth of the region. In this guide, we will show you how to start a land logistics company within Singapore
Types of Transportation Logistics Services in Singapore
There are multiple types of transportation services in Singapore. Some logistics companies offer transportation for the everyday commute, serving the public with convenient services to take them from point A to point B. On the other hand, a freight forwarder handles the transportation of goods instead of persons, and may offer warehousing services as well.
- Freight forwarding
- Supply chain management
- Logistics planning
- Courier and delivery services
- Trucking services
- Distribution services
Benefits of setting up a land transport business in Singapore
Singapore is a great country for businesses with a competitive economy, a great pool of talent, and openness to trade. The stability of politics also makes a significant contribution to its growth. The business environment in Singapore encourages companies to grow, and these companies often require transportation services to distribute their goods.
Thus, operating a freight forwarding, courier, or other transportation services in Singapore can be a lucrative venture. If you are planning to set up a land transport company in Singapore, here are a few benefits to know:
- You can see assistance from the government at all times
- It takes around 1 or 2 days to incorporate a successfully
- No capital tax gains or dividends
- 17% flat corporate tax 0 chargeable income
- Starting personal tax at 0%
- An extended and well-connected system of roads, bridges, airports, harbors, highways, and other infrastructure.
Necessary steps to start a land transport company in Singapore
1. Register your company
Just like other industries, company incorporation is a statutory requirement before you can operate a land transport business. The first thing you need to do is to register the company with the Singapore Accounting and Corporate Regulatory Authority. Possible options for business entities include private limited, partnership, or proprietorship.
The most common form is the private limited company because it could protect your business from the many liabilities related to the industry such as personal injuries, accidents, and destruction of property that may happen on the road during freight forwarding.
This process can be straightforward and quick. All you need to do is to register at the official site of the Singapore government. The BizFile+ site contains a full list of documents needed to incorporate your business, as well as the step-by-step incorporation process.
2. Submit documents
Once your business has been incorporated, it’s time to submit the following documents for the authority:
- Name of the business
- A detailed description of all business activities
- List of shareholders and directors of the business
- The planned address of the company
- The Articles of Association and Memorandum of the business
- Planned business structure
After 3 working days, the Singapore Accounting and Corporate Regulatory Authority will issue the Unique Entity Number that identifies your entity. This certificate can also be used to transact with authorities.
3. Set up the premise
The next step is to choose and set up the premise for your business. In general, it should be zoned for commercial purposes by the Singapore Urban Redevelopment Authority before you can use the whole space. You need to make sure the area can meet fire safety codes and building measures.
According to the regulations by the Singapore Urban Redevelopment Authority, at least 60 percent of the total floor area can be spent on warehouse usage. 40 percent of the space could be used for communal facilities, cafeteria, as well as office space.
4. Get necessary licences
Before your business can start operating, it is essential to apply and acquire a few licences with the right authorities. The specific permits or certificates will depend on the exact form of service that you offer.
For bus or taxi services, you might have to get The License of Public Service from the Land Transport Authority. If you plan to provide postal services, the License of Express Letter Services and the License of Postal Services Operator by the Singapore Infocomm Development Authority are compulsory.
If your transport business involves lifting heavy goods, then it is necessary to get the License of Crane Operator from the Ministry of Manpower. When moving dangerous goods such as flammable materials or toxic chemicals, the drivers of your businesses must acquire the Permit of Hazardous Material Transport Driver by the Civil Defense Force.
Most land transport companies often require working with customs. Thus, you should activate the customs account with the assigned Singpass and Unique Entity Number. You may also need to register your warehouse if your company offers warehousing services.
Register with WealthBridge
Opening and managing a freight forwarding company, a courier service, or delivery services can be overwhelming, which is why we at WealthBridge offer business registration services to make the incorporation process convenient for you. Make WealthBridge your trusted partner in all corporate solutions, and make managing your company a breeze.
Contact us at WeathBridge, your leading provider for corporate solutions, to know more!