By Vlad Cuc, specialist in company formation matters
In an era where digital technology is employed in most of the industries, there are also sectors which still need using conventional methods. One of these industries is the postal services sector in which individuals and cars are used to deliver various packages and the usual mail. Even if more and more enterprisers coming to Singapore are choosing to invest in economic sector which uses technology, it is recommended to pay attention to the postal segment which is suitable for small entrepreneurs who can set up courier businesses quite easy.
The opening of a courier company in Singapore is based on the Postal Services Act which was enabled in 1999. The law was last amended in 2012 when the postal services licenses for setting up such business were renamed. Our Singapore company formation specialists can offer more information on the legislation related to starting a courier business.
Types of courier businesses in Singapore
With all the new technology in place, there are many ways under which a courier company can operate in Singapore. Moreover, with more and more e-commerce companies delivering their products directly to clients, such companies are quite in demand.
There are several types of courier companies that can be set up in Singapore, among which:
bicycle and motorcycle courier businesses which can operate in the restaurant sector;
van courier companies that can be set up as medium-sized enterprises;
same-day courier companies which are in high demand at the moment;
drone delivery service companies that use the newest technology on the market;
international courier businesses that operate as large-sized enterprises.
Thanks to developed trading sector, Singapore is one of the most important electronics producers in Southeast Asia and many goods are shipped from here all over the world which why it is possible for international courier companies to operate here through branches.
Courier businesses are one of the most prolific types of activities that can be completed in Singapore, and if you want to create such a company, our local specialists are at your service for guidance in setting one up.
Choosing a legal form for a delivery service business in Singapore
The creation of a courier business in Singapore implies the same steps as for any other company and one of the most important is related to choosing a suitable legal entity. The choice should usually be made in accordance with the size of the company.
Since courier companies can service a neighborhood or the entire city-state, or can operate even outside the borders of Singapore, it is very important to set up an appropriate type of structure which helps an entrepreneur honor all clients.
The most suitable business form for such an enterprise is the private limited liability company that will shield the shareholder or shareholders from liabilities incurred by the business.
For those seeking to start small delivery services businesses in Singapore, the sole trader and the partnership can be good options if they first want to test the market. The business structure can be altered ulteriorly.
Once the company is incorporated, it should be noted that it will need a corporate bank account through which all financial operations will be completed. Also, it is very useful to have a website where all parcels can be traced by clients.
Setting up a courier business might seem more complicated than it really is, which is why you can rely on our agents in Singapore for guidance in starting this type of company.
What to consider when opening a Singapore courier business
The establishment of a courier company in Singapore implies a lot of organization. For this purpose, a solid business plan where important aspects like transport fleet and storage facilities are handled with priority are a must.
The equipment and other materials for running such a business are also important in order to ensure smooth operations at all ends of the delivery services. Also, having sufficient employees is quite important when offering delivery services.
Another aspect to consider when setting up a courier company in Singapore is purchasing an insurance for the goods that are stored and delivered. Compared to other types of activities, this one requires additional care, which is why an insurance is a mandatory step after the company was registered.
Opening a courier business can be easy as long as all important matters are handled with attention and our Singapore company formation specialists can offer information on all aspects that need to be addressed.
Drafting a business plan
Just like any other company, a courier agency needs a reliable business plan under which it can develop. This is useful to foreign investors who have not faced the Singapore market and who must prepare to meet all the obstacles related to doing business in a foreign country.
The business plan should contain the following:
- a market analysis in order to know the competition;
- a description of the company;
- the organization and management of the business;
- the services it will offer;
- the financial projections for the first year.
Young entrepreneurs can also launch such a business as a startup in Singapore and gather funds on crowdfunding platforms.
Analyzing the market in order to know where the courier company will fit in is vey important when creating such a company considering the competition it will face.
The Singapore company must also have a clear picture of the services it will offer and a good organization. Also, making realistic financial projections for the first year of activity should be in the attention of the entrepreneur creating it.
Then, the business owner must consider the marketing strategy for the business in order to attract clients. For this, one can use the services of a dedicated agency or can even create its own website and application.
If you need more information on how to create a courier business, our Singapore company formation advisors can take you through the steps you need to complete.
How to open a Singapore company in the postal services sector
The first and most important step to create a courier business in Singapore is to register a company with ACRA. For those interested in setting up a small business, the sole proprietorship is recommended, as for those thinking about a larger one the limited liability company is more appropriate.
Once the Singapore company formation process is completed, the business owner can purchase the car or any other vehicle which will be used for the courier company or even create a car fleet which must be registered with the Land Transport Authority. Also, the operator must have an insurance contract with a financial company for the purpose of protecting the goods or mail processed.
Types of licenses for setting up a courier business in Singapore
Once the steps above have been completed, a courier business must undergo the authorization process with the Infocomm Media Development Authority in Singapore (IMDA). Courier companies may apply for one of the two postal services licenses available:
- the postal service operator license;
- the express letter services license.
No matter the type of license, a Singaporecourier company will apply for a solid 3-year business plan must be filed with the IMDA. The plan must be supported by documents about the company, such as the certificate of incorporation and information about the shareholders of the company.
The delivery fleet of a courier business in Singapore
To be able to provide its services, one of the most important parts of starting the operations is securing the delivery fleet. Business owners have multiple choices when it comes to this aspect. From bicycles to cars and even trucks, a Singapore courier company can use various types of vehicles depending on the type of delivery it plans on making.
Also, one must make sure these are reliable and comply with all transportation requirements imposed in the city-state.
Then, the materials which ensures the couriers can work efficiently are also of key importance. From office supplies to cases and boxes, GPS units and radios everything must be in place at the time the company is launched. Hiring proficient staff will also play an important role in the management of the operations.
Starting a courier business in Singapore is not complicated as long as a good business plan that is followed is in place. Also, the promotion of the company in a way in which it inspires confidence and reliability will also attract clients.
How to promote a Singapore courier company
Making a company visible on a bustling market like Singapore can be a challenge. In order to succeed, an appropriate name and logo can be good ideas that appeal to the public. Then, having a well-organized websitethat integrates various services, such as the possibility of tracking the course of a parcel, impeccable customer support and a clear communication style can represent ways through which such a business can promote itself.
Alongside these, mobile applications and other modern features can be integrated in the services provided by such a company and Singapore is one of the best places in the world to do that, as it is very advanced from a technological point of view.
Starting a courier business in Singapore can be challenging, however, it can also be a good opportunity for those interested in accessing a market that is continuously changing and developing and if you need help in choosing a legal and registering it as soon as possible, do not hesitate to ask for the support of our local agents.
Business insurance for a Singapore courier company
Most companies in Singapore have insurances for the activities they undertake, however, in the case of courier businesses it even more important to have such policies especially when it comes to handling other people’s products.
There are specific types of insurances created for this type of services specifically which will also help the company to obtain the confidence of its clients, especially when sending good abroad.
Starting a courier business in Singapore can be an easy task with the right organization, as the government supports new ventures with many incentives. When considering opening such a company, you can also rely on our company registration officers who can explain the entire procedure before the incorporation. We will also help you choose the suitable legal entity in accordance with the size of the business. It is worth noting that if you decide for small-scale operations you will be able to change the business structure later. We also invite you to watch our video below:
The transport and logistics sector in Singapore
Courier companies are part of a large supply chain that includes transport and logistics, and that in the past few years has been representative for the Singapore economy.
- there was a total of 12,856 companies operating in the transport and logistics industry;
- out of these, courier business represented 4.5% totaling 576 businesses;
- transport companies accounted for 20.7% or 2,657 businesses in this sector;
- the highest revenue was generated by water transportation companies with a total of 108,559 million SGD;
- it was followed by air transportation services which accounted for 21,855 million SGD.
Setting up a courier company in Singapore can be completed with the help of our local advisors who can guide you through all the procedures related to selecting an appropriate business form and respecting all the formalities associated with running such an enterprise.