Singapore Freight Forwarding Licensing

Singapore Freight Forwarding Licensing | Bestar

Singapore Freight Forwarding Licensing

Freight forwarding in Singapore requires businesses to navigate a structured licensing and registration process to operate legally. Here's a breakdown of the key aspects:   

Licensing Authority

The primary authority for licensing freight forwarders in Singapore is the Maritime and Port Authority of Singapore (MPA). Additionally, Singapore Customs plays a crucial role in regulating import, export, and transshipment activities, requiring businesses to activate a Customs Account.   

Types of Licenses and Registrations

While there isn't one single "freight forwarding license," several licenses and registrations may be necessary depending on the specific services offered:

• Business Registration with ACRA (Accounting and Corporate Regulatory Authority): This is the first step for any business operating in Singapore. Upon successful registration, the company receives a Unique Entity Number (UEN), which is essential for other license applications.   

  
  

• Customs Account Activation: Any business involved in importing, exporting, or transshipping goods needs to activate a Customs Account with Singapore Customs using their UEN. This allows them to apply for necessary permits through the TradeNet system.   

  
  

• Freight Forwarding and Logistics Service Provider License: The primary licensing body for freight forwarding activities remains the MPA. It's crucial to verify the latest requirements directly with the MPA.

  
  

• Specific Licenses for Sea Freight: If your freight forwarding business involves sea freight, you may need licenses such as:

  
  

  • Harbour Craft License: To operate vessels within Singapore's port.   

  • Port Clearance Certificate: For vessels operating beyond Singapore's port limits.   

  • Port Limit Manning License: For crew members working on your vessels.   

  • Launch a New Vessel Permit: For launching new vessels over 15 meters in length within the port.   

  • Ship Station License: To operate radio communication equipment on registered ships.   

  • Ship Sanitation Control Certificate: To certify the sanitary condition of a vessel for cargo transportation.   

  • Permit to discharge/load/transit dangerous goods and dock vessels carrying such goods.   

    
    

• Container Freight Warehouse License: If your business involves operating a container freight warehouse, you'll need a specific license from Singapore Customs. This license has specific requirements related to GST registration, having a valid Customs Account, good compliance records, and security measures for the premises.   

  
  

• Declaring Agent Registration: If your company intends to apply for customs permits directly through TradeNet, you need to register as a Declaring Agent with Singapore Customs and obtain a TradeNet user ID. Alternatively, you can appoint a registered Declaring Agent to handle customs permits on your behalf.   

Application Process

The general steps to obtain the necessary licenses and registrations include:

1. Company Incorporation: Register your company with ACRA to obtain a UEN through the BizFile+ portal. This involves name approval, filing the incorporation application with necessary documents (company constitution, director/shareholder IDs, local address proof).   

   
   

2.  Activate Customs Account: Once you have a UEN, activate your Customs Account via the TradeNet portal.   

   
   

3. Apply for Freight Forwarding License(s) from MPA: Contact the MPA for the specific application forms and requirements for a freight forwarding license. This will likely involve providing details about your business operations, services offered, and potentially financial statements.

   
   

4. Comply with Trade Regulations: Register with Singapore Customs for import, export, or transshipment activities.

   
   

5. Obtain Other Specific Licenses: Depending on your services (e.g., sea freight, warehousing), apply for the relevant licenses from the MPA or Singapore Customs.   

   
   

6. TradeNet Registration (if applicable): If you plan to handle customs declarations yourself, register as a Declaring Agent and obtain a TradeNet user ID.

It's advisable to consult directly with the Maritime and Port Authority of Singapore and Singapore Customs for the most up-to-date and specific licensing requirements based on your business model and the services you intend to provide.

How Bestar can Help

Bestar can significantly assist freight forwarding businesses in Singapore by offering a range of services that streamline operations, ensure compliance, and save time and resources. Here's how we can help:

Company Incorporation and Registration

• Business Structure Advice: Bestar can advise on the most suitable legal structure for your freight forwarding business (e.g., sole proprietorship, private limited company) based on your needs and future plans.

• Company Registration with ACRA: We handle the entire process of registering your company with the Accounting and Corporate Regulatory Authority (ACRA), ensuring all documentation is correctly prepared and submitted. This includes name application, preparation of the company's constitution, and filing the necessary forms.

• Obtaining UEN: We ensure you receive your Unique Entity Number (UEN) upon successful registration, which is crucial for all subsequent licensing and registration processes.

Licensing and Permits Assistance

• Identifying Necessary Licenses: Bestar can help you identify the specific licenses and permits required for your freight forwarding activities in Singapore, such as those from the Maritime and Port Authority of Singapore (MPA) and Singapore Customs.

• Application Support: We can guide you through the application process for these licenses, helping you prepare the necessary documentation and liaising with the relevant authorities. This can include the Freight Forwarding and Logistics Service Provider License (if applicable), Customs Account activation, Container Freight Warehouse License (if needed), and various sea freight-related licenses.

• Declaring Agent Registration: If you plan to handle customs permits directly, Bestar can assist with your registration as a Declaring Agent with Singapore Customs and the application for a TradeNet user ID.

Regulatory Compliance

• Keeping Up with Regulations: Singapore's business laws and trade regulations can be complex and subject to change. Bestar stays updated on these changes and ensure your business remains compliant.

• Customs Compliance: We can help you understand and navigate customs requirements, including documentation for import, export, and transshipment, as well as compliance with tariffs, duties, and taxes.

• Ongoing Compliance: Bestar provides ongoing corporate secretarial services to ensure continuous compliance with ACRA and other regulatory bodies, such as filing annual returns and maintaining statutory records.

Administrative and Business Support

• Corporate Secretary Services: We can act as your company secretary, a mandatory requirement in Singapore, ensuring compliance with the Companies Act.

• Registered Office Address: Bestar can provide a registered office address for your company, which is a legal requirement.

• Accounting and Tax Services: Bestar offers accounting, bookkeeping, and tax filing services, ensuring your financial records are accurate and you meet your tax obligations.

• Payroll Management: We can handle payroll processing, ensuring timely and accurate salary disbursements and compliance with CPF and tax regulations.

• Business Advisory: Bestar offers business advisory services, providing guidance on corporate structuring, tax planning, and overall business strategy.

Time and Cost Efficiency

• Saving Time: By outsourcing these administrative and compliance tasks to Bestar, you can free up valuable time and resources to focus on your core freight forwarding operations and business development.

• Cost-Effective: Engaging Bestar can be more cost-effective than hiring a full in-house team to handle these functions. We have the expertise and systems in place to handle these tasks efficiently.

In summary, Bestar acts as a valuable partner, helping freight forwarding businesses in Singapore navigate the complexities of company setup, licensing, regulatory compliance, and essential administrative functions, allowing them to operate smoothly and focus on growth.