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
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 business 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.
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.
Opening the Singapore courier company
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
No matter the type of license, a Singapore courier 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 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.