How to Open a Land Transport Company
Singapore is located in a very strategic area that makes it a great hub for transportation and economic activities. Over the past decades, the government has invested a lot of money on building world-class and modern roads, bridges, highways, airports, harbours, and other infrastructure for transportation services.
With extended systems, every part of the country is perfectly connected with each other and other parts of the world. Thus, it is no surprise that more and more land transport companies are established in the country to meet the increasing demands. This will 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 transport business in Singapore.
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. Also, the stability of politics makes a significant contribution to its growth. 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 o 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 industry, 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.
This process can be straightforward and quick. All you need to do is to register at the official site of the Singapore government.
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.
Also. 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 licenses
Before your business can start operating, it is essential to apply and acquire a few licenses 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 products 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.