There are around 300 global trading companies activating in Singapore under the International Enterprise Global Traders Program. The program also includes some of the largest commodity groups in the world. Due to its geographical position and connectivity to about 600 ports in 120 countries, Singapore is the ideal location for commodity trading companies. The commodity trading sector has also evolved a lot during the last years transforming Singapore into one of the largest producer and consumer of commodities in the world.
The commodities trading sector falls under the very strict regulations the Singapore Commodity Trading Act (CTA) enabled in 1992. Singapore companies or residents involved in commodity trading activities are subject to the legislation related to commodity derivatives and clearing facilities for commodity derivatives as described by the CTA. The Commodity Trading Act in Singapore covers all commodities with the exception of commodities regulated by the Securities and Futures Act (SFA). The term “commodity” refers to goods subject of:
For complete details about the recent changes brought to the Commodity Trading Act please contact our specialists in company incorporation in Singapore.
The Commodity Trading Act stipulates the conditions under which a Singapore company or individual must apply for a commodity trading license. Section 14A in the Commodities Act also stipulates the exempt categories of Singapore residents and companies providing broking or advisory services. There are several types of commodity trading licenses in Singapore:
Licensed banks and approved merchant banks in Singapore fall under Section 14A in the CTA and do not require commodity trading licenses.
In order to obtain a Singapore commodity trading license one must submit the following documents:
The commodity trading license in issued by International Enterprise in Singapore and has one-year validity.
For detailed information about the licensing of commodity trading companies you can rely on our company registration firm in Singapore.