Free trade zones are areas through which companies can import, sell or export goods without customs, excise duties or goods and services tax (GST). Singapore also has free trade zones (FTZs) which enables companies in the trading sector to benefit from transportation facilities. These special areas are regulated by the Free Trade Zones Act enabled in 1966 and last amended in 2014. Singapore’s FTZs allows companies to store their merchandise temporarily until they are loaded to a ship or an aircraft without customs clearance.
Our specialists in company registration in Singapore can provide you with more information about the facilities offered in the city-state’s free trade zones.
The video below offers information on Singapore's free zones:
At the moment, Singapore has nine free trade zones:
Singapore companies operating in one of these FTZs are not required to pay customs duties until their goods exit the free zones. These companies also benefit from streamlined customs procedures when importing goods in the city-state.
In order to operate in one of Singapore’s free zones, local companies must obtain a permit from TradeNet which allows them to import, export and transport their goods overseas. They must also obtain permission from the Customs Authorities in order to keep their goods in the FTZs. Foreign companies operating in Singapore must work with local transporters and traders in order to obtain a license.
Foreign investors seeking to start a company in one of Singapore’s free zones can do so without any restrictions. The minimum share capital for setting up a business in a FTZ depends on whether the company needs warehouse or office spaces and it must be deposited within the first year of the registration. The company must also obtain a permit from the free zone’s authority.
For assistance with the documentation and licensing for starting a company in a free trade zone, do not hesitate to contact our Singapore consultants in company formation.