Singapore is one of the most prolific trading hubs in Southeast Asia having tight economic relations with one of the largest commodities markets in the world, China. In order to enhance this partnership, a few years ago, Singapore signed a Mutual Recognition Arrangement with Hong Kong through which the customs authorities in the two republics ease the clearance of goods imported and exported by free zone companies in the two states. Opening a free zone company in Singapore implies going through the same company registration process as for any other type of business form. Foreign investors have the possibility of establishing a free zone company in any of Singapore’s free trade zones.
If you are interested in opening a free zone company in the city-state, our Singapore company formation experts can assist you.
The video below is also a brief guide on the company registration procedure of a free zone company in Singapore:
Singapore has nine free zones, Jurong Port, Airport Logistics Park, Changi Airport Terminal Complex and Keppel Distripark being just a few of the most prolific ones. Opening a Singapore company in a free zone implies the registration procedure to be completed with the Accounting and Corporate Regulatory Authority and then obtaining the necessary permits with the authority of the free zone where the company will operate.
In order to register a company in a Singapore free zone, an investor must prepare the statutory documents and together with their personal details submit them with the Trade Register. Foreign enterprisers must appoint Singapore company formation agents to carry out the company registration process. The only special requirement for a free zone company is to have a minimum share capital of 100,000 SGD if it will have a warehouse in the respective free zone, and 50,000 SGD if it will only have an office. The capital must be deposited within the first year of activity.
The main advantage of free zones companies in Singapore is that they do not pay any customs duties or GST when importing goods into the free zone. However, all trading companies must obtain a Unique Entity Number (UEN) with the Customs Authority, open an inter-bank GIRO account and obtain the IN and OUT permits, which allows them to import, respectively export goods. Also, special licenses are required for the import of high-tech and controlled products.
For full information on how to open a company in a free zone in this city-state, do not hesitate to contact our company registration agents in Singapore.