Foreign investors can relocate to Singapore to run their company. To gain eligibility, they need to possess a work visa. The Entrepreneur pass is unlike any other. It is designed based on the feasibility and growth estimates of the businessman’s business. It does not take into account the educational qualification of the foreign applicant. Rather, it probes into the impressive entrepreneurial skills of the businessman based on his experience.

“Foreign investors who seek to become a resident director in a private limited company or a subsidiary company may apply for an Entrepreneur pass,” says Asiabiz, “Unlike the other work visas, the Entrepreneur pass is first sought before a company is registered.”

Asiabiz specializes in incorporation and immigration, among others. The work visas in Singapore are only applied by the registered companies that offer employment to foreign nationals, except the Entrepreneur pass, which is exclusive for businessmen.

“The requirements of an Entrepreneur pass are 10 pages of business plan, investment capital starting at S$50,000, and the Total Business Spending category,” cites Asiabiz.

The business plan should be feasible and entrepreneurial in nature. It should highlight the business goals, specify the product or service, and identify the marketing strategies. Meanwhile, the Total Business Spending is a requirement on the first year of doing business. It pertains to the capacity of the businessman to employ local residents for one whole calendar year. It is also the basis of ascertaining the type of Entrepreneur pass issued.

“The Q1 type of Entrepreneur pass requires a TBS of S$100,00 or 2 local residents as employees, and P2 type needs a TBS worth S$150,000 or 4 local employees, and P1 is for a TBS starting at S$300,000 or 8 local employees,” Asiabiz elucidates.

Once it is issued, the holder can enjoy its validity of up to 2 years and renewable as long as the business is earning & yields economic spin-offs. The immediate family such as the legal spouse and unmarried children below age 21 can apply for a Dependant pass.

Asiabiz assists entrepreneurs in drafting the business proposal. It has a team of experts who are educated from prestigious universities in Asia Pacific.

Ministry of Manpower may also base its decision on the reputation of the applicant’s company, his job responsibility, his age, and current citizenship

To encourage foreign entrepreneurs and professionals to setup a Singapore company and work in the country, the government provides a work permit called Employment Pass for those who will meet with these following qualifications:

1. A Diploma/degree from a reputable university
2. Related work experience
3. At least a minimum S$2,500 monthly salary
4. Professional qualifications and skills

These four factors play an important role for the approval of the Singapore Employment Pass.  However, the Ministry of Manpower may also base its decision on the reputation of the applicant’s company, his job responsibility, his age, and current citizenship.

Meanwhile, it is important to note that having a degree does not automatically mean that a person is qualified for an Employment Pass. He also needs to meet the criteria in terms of work experience and professional skills.  In fact, some foreigners may qualify for this work permit purely based on their highly impressive professional skills despite not meeting the educational criteria.

The validity of Employment Pass usually lasts a year or two.  During this period, individuals who have this work visa  can easily travel in and out of the country without any hassle.

Also, Employment Pass holders can apply for a permanent residence status just after six months of staying in Singapore, yhowever it is highly recommended that you apply after some years in Singapore.

Meanwhile, the Ministry of manpower will send a mail to the employers of the Employment Pass holders two months before the expiry date of the work permit.  After this, the holders should be able to submit their renewal application to the department four weeks before their permit expires.

One of the advantages enjoyed by the Employment Pass holder is that their family members can apply for the Dependent Pass and Long-term Visit Pass that will allow them to visit and stay in Singapore for a longer period.

Family members who are qualified for Dependent Pass:

* Spouse
* Unmarried children, including those who are legally adopted, aged under 21 years old

Family members who are qualified for Long-term Visit Pass:

* Spouse
* Parents
* Parents-in-law
* Handicapped children regardless of their age
* Unmarried children, including those who are legally adopted, aged under 21 years old

Dependent Pass and Long-term Visa Pass holders can enter and leave Singapore without having to apply for a visa as long as their relatives still continue their employment or business in the country.

The Maritime and Port Authority of Singapore (MPA) is entrusted with the mission to developSingaporeas a premier global hub port and international maritime centre (IMC), and to advance and safeguardSingapore’s strategic maritime interests. MPA takes on the roles of Port Authority, Port Regulator, Port Planner, IMC Champion, and National Maritime Representative.

The following is a guide to the licensing & permit procedures for setting-up a shipping establishment in Singapore. This is not a comprehensive guide and readers are advised to refer to the MPA’s site at www.mpa.gov.sg for latest updates.

Registering the company

Registering the company with Accounting and Corporate Regulatory Authority of Singapore is the foremost requirement. This is a statutory prerequisite to conduct any form of business activities inSingapore. Incorporating aSingaporecompany is a simple process and can be done within the same working day if all papers are in order.

Licensing of Crafts

Licenses are needed for plying vessels or craft in theSingaporeport waters, including permission for activities associated with such vessels.

Harbor Craft License

The Maritime and Port Authority (Harbour Craft) Regulations states that no vessel shall be used as a harbour craft within theport ofSingapore without a harbour craft license. Harbour Crafts ply only within the Port Limits of Singapore or places within the port limit as stipulated in the craft license certificate. Every harbour craft proceeding outside Port Limits must possess a valid port clearance certificate.

Harbour craft licenses are issued by the Maritime and Port Authority ofSingapore(MPA) to vessels used for commercial purposes within the port. There are six categories of licenses issued depending on the purpose and type of craft, such as bum boat, passenger boat tug boat etc.

How to Apply for License

1. Submit Application & Supporting documents

   An applicant is required to submit the duly completed Application Form for a Harbour/Pleasure Craft Licence (PM74), along with the originals and copies of the following supporting documents at the MPA’S One-Stop Document Centre (OSDC)

   • NRIC(s) for licensing in the name of one or more individuals
   • Instant Information Printout from the Accounting and Corporate Regulatory Authority (ACRA) for licensing in the name of a corporate body.
   • Proof of ownership – Bill of Sale, Charter Agreement, Builder’s Certificate, Hull Receipt or Invoice, etc
   • Proof of origin of vessel – Launching Permit, Import Permit, General Arrival Declaration, whichever is applicable;
   • Insurance Policy – A marine policy covering third party liabilities including wreck removal and personal/passenger injuries
   • Craft’s manning – MPA Manning license
   • Letter of approval for use of pier/landing places where applicable issued by the owner/manager of the facilities;
   • Any other documents or requirements as required by the Port Master.
2. Inspection of the craft
   Every vessel should pass a compulsory inspection of her hull, equipment and appliances for the licensing as a harbour craft. Arrange with the One-Stop Document Centre (OSDC) for the place, date and time of the inspection in person at least one week in advance. It should be noted that such inspection is to be carried out every 12 months before its license is renewed.
3. Obtaining License
   The applicant will be issued a Craft Inspection Report once the craft passes the inspection. Payment must be made towards the dues and fees, within seven days from the date of inspection. The craft license must be displayed in a conspicuous place on board at all times. The license number must be Carved-on or cut-in into the main beam of the vessel and must be legible and visible on the vessel and its portable lifesaving and firefighting appliances at all times.

Port Limit Manning License

All crew working on board a harbour craft are required to possess a valid Port Limit Manning License. There are different types of Manning Licenses.

Application for Port Limit Manning License must be made within 6 months of the passing date of examination/ COC or expiry of the manning licenses. Duly completed Port Limit Manning License application form must be submitted along with the following documents to the MPA’s One Stop Document Centre

• Certificate of Competency or Result slip from MPA’s Maritime and Port Training Section
• Identity Card/NRIC (for locals) and Passport (for foreigners)
• Certificates of relevant additional courses attended
• Work Permit /EmploymentPass(for foreigners only)
• 1 recent passport-sized photograph
• Existing license (for Renewals only) – To be surrendered to MPA. A police report is to be made and submitted if this is lost

Upon payment of fees the MPA will review the form and documents submitted and will issue the Port Limit Manning License.

Permit to Launch a New Vessel in the Port

Regulation 52 of the Maritime and Port Authority of Singapore (Port) Regulations states that Vessels more than 15 meters long require written permission from the Port Master before they can be launched in port.

A “Permit to Launch a New Vessel” must be obtained from the Port Master before the vessel can be launched, by submitting two copies of the completed, signed and stamped Permission to Launch a Newly Constructed Vessel into the Waters of the Port Form to MPA’s One-Stop Document Centre (OSDC). The submission must be madewithin 3 working days prior to the launching of vessel.

Permit to Lay-Up a Vessel in Port

A vessel, which is not under repair or not actively employed, to be laid-up in the port requires a prior written permission of the Port Master and subject to such conditions as he may impose.

The owner / agent must submit the following to MPA’s One-Stop Document Centre (OSDC):

1. 2 copies of duly completed Permission to Lay up a Vessel in the Port form
2. Original of valid Ship’s Registry, Safety Construction, Safety Equipment, Loadline and International Oil Pollution Prevention Certificates, or Certificate of Fitness (fit to be lay-up) issued by the recognized Classification Society, ISM Code (DOC & SMC) and ISPS Code (ISSC).
3. Letter from local P & I Club Representative confirming that the vessel is entered with the Club and insured for Port Risks (i.e. Oil Pollution, Wreck Removal Salvage Costs);

In the absence of P & I Club coverage, the vessel must be insured for similar risks by an Insurance Company having a representative office inSingapore. A copy of the Cover Note issued by that office is to be submitted. The insured value for oil pollution risk – $450/-per GT, Wreck removal, salvage and salvage cost – $250 /- per GT of Hull value whichever is greater.

1. 1 copy of the Crew List according to minimum manning requirement. Qualification of Officers & Crew should be as those acceptable to MPA Shipping Division orPortofRegistry.
2. In the case of Tankers, Chemical / Bulk Carriers and Oil Barges, Original of recent “Certificate of Freedom from Flammable Goods”
3. Original of Fire-fighting Certificates (issued by the competent Fire Authorities) held by the Officers & Crew

The “Temporary Permit to Lay-Up a Vessel in Port” is granted based on the expiry dates of the certificates submitted along with the form. An extension of the Permit must be obtained if the vessel is still inactive at the end of the expiry date. The extension is subject to renewal of the expired certificates.

Ship Registration Certificate

Registration is open to all types of ships except fishing vessels, hydrofoils and wooden vessels. Vessels can be registered under foreign flag or Singapore flag. Some inherent benefits of registering ships under Singapore flag are discussed later in this article. The process of registering a ship with Singapore Registry of Ships (SRS) is straightforward and easy, but before registering, a vessel must satisfy the following prerequisites:

• Generally, ships less than 17 years will be considered for registration
• OnlySingaporecitizens, permanent residents orSingaporeincorporated companies (foreign owned or locally owned) can be registered as owners ofSingaporevessels.
• In case of a foreign-owned company – a company incorporated inSingaporeand has more than 50% of its equity owned by foreigners- the vessel may be registered inSingaporeunder the following conditions
• The company must have a minimum paid-up capital of S$50,000.
• The vessel must be at least 1,600 GT and be self-propelled.
• The Registrar may in his discretion, waive the minimum paid-up capital and gross tonnage conditions on a case-by- case basis depending on certain conditions. Owners must apply to the Registrar for such waivers.
• In case of a locally owned company – a company incorporated in Singapore and has more than 50% of its equity owned by Singapore citizens or another locally owned company – the vessel may be registered in Singapore if the company satisfies the minimum paid-up capital requirement.
• For tug- and barge-owning local companies and their holding companies, the paid-up capital will be pegged to 10% of the value of the first tug or barge registered or S$50,000, whichever is the lesser, subject to a minimum of S$10,000.
• Write in to Registrar of Ships
  If the above prerequisites are met, then write in to the registrar seeking approval of vessel name and apply for an official number for the vessel and Call Sign Number/Signal Letter.
• Submit Application form and Supporting Documents
  A Vessel maybe registered provisionally or permanently. Provisional registration is valid for a maximum period of one year with no possibility of any extension. The vessel must be transferred to the permanent register before the end of this period. The transfer will be effected when all the outstanding documents for permanent registration are submitted and there is no fee for this transfer.
• In order to register the following must be submitted:
  • Duly completed Registration Application Form
  • Appointment of Agent Form – an agent may be appointed to sign the declaration in the registration application in lieu of the individual owner or Director/Secretary the company. This form is applicable in such cases only.
  • Appointment of Manager Form – The vessel manager is responsible for the operations of the vessel, for all matters related to the crew, safety and prevention of pollution. All communication relating to the vessel will be directed to the manager
  • Supporting Documents
    • Business Profile Printout from ACRA
    • Copy of certificate of Incorporation
    • Proof of ownership – Builder’s certificate in case of new vessels or in the case of existing vessel, a copy of the Bill of Sale or the transcript of its former registry to establish ownership
    • Value of the vessel – The owner must declare the value of the vessel inSingaporedollars on the company’s letterhead if this is not reflected in other documents submitted
    • A tonnage certificate issued by the MPA’s Shipping Division or any of the classification societies authorized by the MPA.
    • Copy of the vessel’s classification certificate issued by any of the authorized classification societies
    • Other statutory compliance certificates
    • Where the vessel has, at any point in time, been registered in another country or struck off the register an evidence of cancellation of former registry.
• Pay Fees and Receive registration
  Upon submitting the forms and supporting documents and payment of the fees as applicable,a Certificate of Registry and a Carving and Marking Note will be issued. The Carving and Marking Note has to be certified by a surveyor from the MPA’s Shipping Division or one of the authorized classification societies and returned to the Registry within 30 days of its issuance date.

Benefits of registering ships under Singapore flag

Administered by the Maritime and Port Authority of Singapore (MPA), Singapore Registry of Ships (SRS) is internationally recognised for its efficient services, high operational and pollution control standards, and good safety record. It ranks among the top ten largest registries in the world, with more than 3,000 registered vessels, totaling 43.7 million gross tons, and is the preferred choice of flag for many international ship owners. Some of the benefits of registering vessels under Singapore flag are

• Adoption of international standards
  Singapore is a party to all the major International Maritime Organization (IMO) conventions on ship safety and marine pollution prevention.
• Good safety record
  The SRS is on the White List of key port state control regimes, with a dedicated flag state control unit (FSCU) that actively monitors, identifies and regularly penalises any non-conforming ships in the SRS.
• Experienced and responsible administration
  The SRS is a hands-on and efficient administration, quick to respond to the needs of the shipping community with diligence and high quality of service. With over 30 years of experience, it is recognised as a non flag of convenience (FOC) registry by both the United Nations Conference on Trade and Development (UNCTAD) and the International Transport Workers’ Federation (ITF).
• Choice of classification societies
  Nine internationally recognized classification societies, in addition to MPA, are authorized to survey and issue tonnage, safety and pollution prevention certificates to Singapore ships
• Flexibility on crew nationality
  As There are no restrictions on the crew’s nationality. Foreign officers and ratings may sail in Singapore ships within the capacity they are qualified to sail in. In order to maintain quality and competence, all crew must meet the standards of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) 1978. This is a definite advantage because qualified seafarers are a rare talent pool.
• Recognition of foreign certificates of competency
  Singapore allows foreign officers and engineers who hold valid and relevant foreign certificates of competency (COC) to serve onboard Singapore ships. No prior approval is required. Owners simply need to apply for a Certificate of Endorsement (COE) for their crew who hold foreign COC.
• Tax exemption
  Profits derived from the operation of a Singapore vessel are exempt from Singapore income tax.

Applying for surveys and certification of Singapore-registered ships

Surveys and certification of Singapore-registered ships may either be carried out by the MPA Ship Safety Department or any one of the classification societies authorized by the MPA as recognized organizations (RO). For list of RO, please refer MPA’s website.

Owners or companies of Singapore-registered ships who wish to have a radio survey carried out by a radio surveyor appointed by the MPA should apply directly with any of them. MPA will review the radio survey report submitted by the radio surveyor before issuing or endorsing the Cargo Ship Safety Radio Certificate. For a list of appointed radio surveyors, please visit MPA’s website.

Manning Requirement for Singapore- Registered Ships

Owners and masters of Singaporeregistered ships have to meet certain manning requirements.

There are no restrictions on the crew’s nationality. Foreign officers and ratings may sail inSingaporeships, within the capacity they are qualified to sail in.

Singaporeships need to be manned by a minimum number of qualified officers in accordance with the scales stated under the Merchant Shipping (Training, Certification And Manning) Regulations 1998 .The key requirements include:

• At least three certificated deck officers (master, chief officer and second officer) are required for ships above 3,000 GT.
• At least three certified engineers (chief engineer, second engineer and other engineer) are required for ships above 3,000 kW.
• There is no minimum number for ratings. The ship-owner or ship-manager should propose to the Shipping Division of the MPA such number which will be subjected to approval.

AllSingaporeships need to be safely manned and hold a Safe Manning Document (SMD) issued according to the SOLAS Convention and the principle contained in the IMO Resolution A.890 (21). Application for the SMD should be made to the Shipping Division of the MPA.

As regards qualification of officers, MPA recognizes foreign Certificates of Competency (CoC).The CoC must be issued by an administration whose certificates are recognized by MPA. An officer who holds a foreign CoC needs to be issued a COE by MPA to serve on aSingaporeregistered ship. The COE is strictly issued to officers holding a CoC from countries that have signed agreements with the MPA. A COE is valid for five years from the date of issue. The COE will not be valid once the applicant’s CoC expires. Ratings do not require COE.

Port Clearance Certificate

For Departing Vessels

• An owner, agent or master must make a declaration before the vessel’s departure from Singapore and obtain a Port Clearance Certificate from the Maritime and Port Authority. For this purpose, two copies of the completed General Declaration Form must be submitted to the MPA’s One Stop Document Centre with thesupporting documents. MPA accepts certified true copies of the supporting documents endorsed by the proper issuing Authorities in the absence of the originals.
• Upon proper review of the documents submitted and manning inspection of the vessel, MPA issues Port Clearance Certificates to vessels that have met the requirements above and paid the port dues. The agent should ensure receipt of all the vessel’s documents before leaving the counter at OSDC.
• A vessel must leave the port within 48 hours or a shorter period specified by the Port Master after obtaining the port clearance. An agent must return the Port Clearance Certificate to the Port Master within 6 hours after the departure period if the vessel failed to depart during the departure period.

For Arriving Vessels

The owner, agent, master or person-in-charge of Single Hulled Tankers (SHTs) arriving inSingaporemust make a pre-arrival declaration before the arrival of the vessels intoSingaporeport. The owner, agent, master or person-in-charge of these vessels must notify the Port Master in the prescribed format to the Port Master by fax or telex

• at least 12 hours prior to the vessels’ arrival inSingapore;
• once the vessel departs if they come from a nearby port with less than 12 hours steaming time toSingapore; or
• at least 24 hours in advance if they carry hazardous and noxious substances in bulk

An owner, agent or master must declare the arrival of their vessel within 24 hours upon arrival inSingaporeand the following must be submitted to the MPA’s One Stop Document Centre along with two copies of General Declaration Form

• Original Port Clearance of last port of call,
• Certificate of Insurance in respect of Civil Liability for Oil Pollution Damage (if applicable) and
• IMO Certificate of Fitness for LNG/LPG and vessels carrying dangerous chemicals in bulk

OSDC will allot a GDV Number (General Declaration of Vessel Number) on receipt of the required documents, and stamp the GDV Number on all copies of the General Declaration. The OSDC will retain the original copy of the General Declaration for arrival of vessel and return a copy of it to the shipping agent.

Note: The shipping community may choose to carry out port clearance formalities for vessels at the offices of shipping agencies by using the Electronic Port Clearance (EPC) via Marinet. EPC users can apply and obtain port clearance for vessels when they undertake and declare that their vessels are properly crewed, and possess the valid certificates and documents. EPC users need not present the original certificates for inspection at the OSDC unless there is a change in last recorded data.

Supporting Documents for Port Clearance

• Certificate of Registry;
• Load Line Certificate;
• Passenger Ship Safety Certificate (for passenger vessel only);
• Cargo Ship Safety Construction Certificate;
• Cargo Ship Safety Equipment Certificate;
• Cargo Ship Safety Radio Certificate;
• Certificate of Insurance or other Financial Security in respect of Civil Liability for Oil Pollution Damage (CLC 92). This applies to a vessel carrying in bulk a cargo of more than 2,000 tonnes of persistent oil;
• Certificate of Fitness issued pursuant to IMO Codes on vessels carrying liquid bulk dangerous substances (including liquefied gases);
• Crew List (in duplicate);
• Passenger List, if applicable (in duplicate);
• International Oil Pollution Prevention (IOPP) Certificate with approved Shipboard Oil Pollution Emergency Plan (SOPEP) and if applicable, compliance with Regulation 13G and 13H of Annex I to MARPOL 73/78;
• International Tonnage Certificate (ITC69);
• Certificate of Insurance for passenger vessel;
• International Safety Management (ISM) Code with approved Document of Compliance (DOC) and Safety Management Certificate (SMC);
• International Ship Security Certificate;
• International Air Pollution Prevention Certificate;
• International Sewage Pollution Prevention Certificate
• Bunker Convention Certificate

Incentives for Shipping Companies in Singapore

MPA has in place a growing number of incentives and initiatives to help both new and existing players develop their business inSingapore.

Maritime Sector Incentive – Approved International Shipping Enterprise (MSI-AIS) Award - seeks to encourage international ship owners and ship operators to establish their commercial shipping operations inSingapore. Companies qualifying under the scheme will enjoy tax exemption on qualifying shipping income for either:

• a 10-year renewable period; or
• a 5-year non-renewable period, with the option of graduating to the 10-year renewable award at the end of the 5-year period

Maritime Sector Incentive – Maritime Leasing (MSI-ML) Award

Encourages entities to use Singaporeas their capital and funding base to finance their vessels or sea containers. Under this scheme Ship or container leasing companies, funds, business trusts or partnerships will get to enjoy tax concessions for up to 5 years on their qualifying leasing income. Also an approved manager of the asset-owning entity will be awarded a concessionary tax rate of 10% on its qualifying management income.

Maritime Sector Incentive – Shipping-Related Support Services (MSI-SSS) Award

Promotes the growth of ancillary shipping service providers and to encourage shipping conglomerates to set up their corporate services functions in Singapore. Qualifying company will enjoy a concessionary tax rate of 10%, for a period of 5 years, on the incremental income derived from the provision of the following qualifying approved shipping-related support services:-

• Ship broking
• Forward freight agreement (FFA) trading
• Ship management
• Ship agency
• Freight forwarding and logistics services and
• Corporate services rendered to qualifying approved related parties who are carrying on business of shipping – related activities

Withholding tax exemption

Qualifying entities which obtain qualifying loans from foreign lenders are exempted from withholding tax on interests.

In addition to the above, the Maritime Cluster Fund (MCF) facilitates the growth ofSingapore’s maritime cluster by supporting the industry’s manpower and business development efforts.

Concession for Vessels on Maiden Voyage Calls

Vessels on their maiden voyage, calling in Singapore, are eligible for a concession in port dues. 50% one time reduction in rates shall be granted for the maiden voyage call of vessels of 75 GT or more. In order to qualify the vessel should be less than 3 years of age and should be calling inSingapore for the first time.

Some of the factors that promote the attractiveness of Singapore as an international trading hub are:

• Singapore has one of the most open trading policies in the world and most goods and services are allowed to be imported into the country duty free and export is also hassle free. Driven by environmental, health & public safety concerns there are some restrictions in place on imports and exports.

• Customs and trade documentation procedures are streamlined for smooth flow of goods in and out of Singapore. A paperless electronic trade management platform ensures a quick and seamless exchange of information at all levels within the trading community. Its infrastructural excellence and lack of red tape ensures movement of goods efficiently and quickly.

• Singapore is strategically located along the corridor connecting east and west thus enabling easy access to supply sources and markets.

• Singapore has one of the world’s busiest ports and an award-winning international airport. Some 84 international airlines connect Singapore to more than 180 cities in 57 countries worldwide. Its sea port, with an annual average of 140,000 vessel calls, has some 200 shipping lines with links to more than 600 ports in over 120 countries worldwide. Singapore is also home to most of the international logistics service providers.

• The ever expanding network of Free Trade Agreements (FTAs) help eliminate barriers to trade allowing a smoother flow of goods and services and movement of people into and out of  the country.

• Socio-political and economic conditions in Singapore has largely remained stable.

• As a financial nerve center of the region it boasts of a comprehensive network of financial institutions that provide a diverse range of services such as trade insurance, trade financing, etc.,

Singapore has a simple and straightforward regulatory framework to govern the trading activities in Singapore. Some of the key facets of starting and conducting a trading business in Singapore are discussed below.

Registering with ACRA

In order to engage in import and export activities in Singapore, the company or business should first be registered with the Accounting and Corporate Regulatory Authority (ACRA). Entities of any type can be registered with ACRA. On successful registration with ACRA, the business or company will be given a Business Registration Number which is also its Unique Entity Number (UEN). UEN is a prerequisite to interact with any government agencies. An entity must mention its UEN in every application made by it for a permit, license, certificate or other document under the Regulation of Imports and Exports Act (Chapter 272A).

Registering with Singapore Customs

All importers, exporters and declaring agents are required to activate their UEN with Singapore Customs. All entities with a valid Unique Entity Number (UEN) can activate their Customs Account. Generally the activation is done within the same working day. The activation is free and the Customs Account is valid for as long as the entity remains registered with ACRA. The registration of an entity with the Director-General of Customs (the Director-General) under regulation 37 of the Regulation of Imports and Exports Regulations (RIER) is subject to certain conditions and non-compliance may result in suspension or removal of the name of the entity from the register.

Apply for License

Goods are classified as controlled and non-controlled goods. Trading of non-controlled goods does not require licenses. For trading controlled goods such as drugs, chemicals, animals, food products, etc., a license must be obtained from the Competent Authority (CA), government agencies that regulate the controlled goods. Trading in certain items is strictly prohibited in Singapore. So before goods are imported or exported, the classification of goods must be rightly identified, in case of doubt, a Classification Certificate may be obtained from the Singapore Customs by submitting an application online with relevant supporting documents. Then the importer may apply for the license to import from the relevant authority.

Permits

Import Permits

In general, for import of all goods (controlled or non controlled items), an Import Permit – IN permit is required.  It must be secured before the goods are imported into Singapore and it can be obtained online via TradeNet®. An IN Permit is required for each shipment of goods that enters Singapore.

When importing controlled goods, the Import Permit must be routed to the Competent Authorities (CAs), government agencies that regulate controlled goods, for approval.

Additional Requirements for Importing High-Tech Products

When importing high-tech products, the importer may need to apply for an Import Certificate and Delivery Verification (ICDV) from Singapore Customs. The high-tech products may be subjected to restriction in the countries from where they are imported. In such cases generally, the exporter in the exporting country will ask the Singapore importer for an ICDV from Singapore. Items covered by an ICDV must be imported into Singapore directly, and are not to be diverted to other countries.

Export Permits

• For export of goods out of Singapore, you are required to:

• Obtain an OUT Permit through TradeNet® within 3 days of export if your goods are non-controlled or are exported by sea or air; or

• Obtain an OUT Permit through TradeNet® before goods are exported out of Singapore if your goods are controlled or are exported by road and rail, or

Additional Requirements for Exporting Locally Made Goods

When exporting to treaty partners, such as FTA partner countries, a Certificate of Origin (CO) may be required for the buyers in the FTA partner countries to avail the treaty privileges. A CO is a proof of nationality for the goods. The Rules of Origin (ROO) will be applied to determine if the locally manufactured products qualify as Singapore-made.
CO is of two types – Ordinary and Preferential. Goods with 25% local content will be given an Ordinary CO and this is merely to prove that the goods were made in Singapore. If the local content makes up between 30%-50% of the product then a Preferential CO will be issued and this will entitle the buyers to claim preferential tariffs given under Schemes of Preferences and Free Trade Agreements (FTAs).

Exporting, Re-Exporting, Transshipping Strategic Goods

A special permit called JNTDEC3 must be obtained before exporting, re-exporting, transshipping and transporting of goods that are governed by Strategic Goods (Control) Act. The Act covers all goods and technology that are intended or likely to be used for weapons of mass destruction.

Duties, Taxes and Fees Payable

Goods that are subject to customs & excise duties are known as dutiable goods. Duty is payable if such goods are manufactured in Singapore or imported into Singapore.  Dutiable goods in Singapore are intoxicating liquors, tobacco products, motor vehicles and petroleum products. Duties are levied on an ad valorem basis or specific rate basis. Duties payable are temporarily suspended when goods are:

• in Free Trade Zones (FTZs)

• in Licensed Warehouses

• under the Industrial Factory Exemption Scheme ( a tax break scheme for manufacturers using dutiable raw materials in the manufacturing of non-dutiable goods)

All Goods that are imported into Singapore are subject to a GST of 7%, if the goods are meant for local consumption. The GST taxable is calculated based on the CIF (Costs, Insurance and Freight) value plus all duties and other chargeable costs, whether or not shown on the invoice. GST payable are temporarily suspended when the goods are:

• in Free Trade Zones (FTZs)

• in Zero-GST Warehouses

• in Licensed Warehouses

• Under the Major Exporter Scheme (MES) (a scheme for deferring Goods and Services Tax (GST) on goods imported mainly for re-export)

Customs Fees

In addition to the duties and GST, Singapore Customs charge Procedural and Administrative fees.

Making payments through GIRO is the most efficient and it authorizes Singapore Customs to make direct deductions from your bank account. Application for GIRO deductions can be signed at the time of registration with Singapore Customs.

Clearance of Goods

Immigration and Checkpoint Authority (ICA) officers conduct checks on vehicles, cargoes and persons entering the country, and refer trade and customs matters to Singapore Customs for follow-up. Clearance procedure depends on the type of cargo and the mode of transport. Some documents that need to be produced at the point of clearance are as follows.

Exports Clearance

For export of non-dutiable and non-controlled goods by air or sea, the trader can clear the cargo through the checkpoint without a Customs Permit.
For air consignment, submission of Outward declaration for approval can be made within three days of the export of the cargo, whereas for sea consignment, it can be made before the departure of the vessel.
For exports of Dutiable and controlled conventional cargo and for all exports via rail or road Customs Permit must be produced at the exit checkpoints, before the exports.

Import Clearance

Conventional Cargo

For import, traders should produce the Customs IN Permit with the supporting documents such as, invoice, packing list, bill of lading etc to the ICA officers at the entry checkpoint for the clearance of the goods. Also for imports meant for local consumption GST has to be paid before clearance. For a consignment which requires partial clearance, the trader should produce the same permit each time for customs endorsement until the whole consignment is completely cleared.

Containerized Cargo

There are two types of containers viz. full container load (FCL) and less than full container load (LCL). A LCL container is a container with goods for more than one consignee or with goods from more than one consignor, whereas an FCL is a container with goods for one consignee or with goods from one consignor.

LCL containers are unstuffed in the FTZ and cleared through the FTZ Out-Gates as conventional cargoes. No Customs supervision is required for the unstuffing of such containers in the FTZ.

FCL containers are sealed by the ICA officers at the FTZ Out-Gates or examined/released without being sealed. Sealed containers should only be unstuffed under Singapore Customs’ supervision. Customs seals placed on containers at the time of import should not be broken without the supervision or written permission of Singapore Customs. After the sealed containers have been trucked out of the FTZ, consignees or their transport agents should make arrangements with Singapore Customs for supervision of unstuffing of the containers.

Containers not requiring Customs examination will be given SNR (i.e. Sealing Not Required) facilitation and released by ICA officers without being sealed. Unsealed containers may be unstuffed at any time without Singapore Customs supervision.

Storage of Goods

Free Trade Zones (FTZs): These are specially designated areas in Singapore where the payment of duties and taxes are suspended when goods imported into Singapore are stored here. Duties and taxes are payable when the goods leave the FTZ and enter into customs territory for local consumption. There are 3 FTZ authorities and there are several locations of the FTZs under each control.  Non-dutiable goods can be deposited in FTZs provided they are being transshipped or re-exported. Dutiable goods can be stored in FTZs, except for intoxicating liquors and tobacco products, which must be stored in Licensed Warehouses. Repacking, sorting and re-conditioning can be done in the FTZ, but you need to obtain prior permission from Singapore Customs.

Licensed Warehouses: These are for imported dutiable goods. Intoxicating liquors and tobacco products must be stored in Licensed Warehouses. They cannot be stored in Free Trade Zones or Zero-GST Warehouses. Duty and taxes (GST) are suspended in Licensed Warehouses until they are removed from the premises and enter the local market for consumption. Such warehouse facilities may be provided by manufacturers, wholesalers, distributors or private warehouse operators. By paying a license fee to Singapore Customs a trader can convert whole or part of his warehouse into a Licensed Warehouse through the License Warehouse Scheme (LWS).

Zero GST Warehouses: These are for storage of non-dutiable goods and approved non-dutiable commodities such as coffee, pepper, rubber, base metal, crude oil and petroleum products. Goods & Services Tax (GST) is suspended in ZG Warehouses until the goods are removed from the premises and enter the local market for consumption.  The movement of goods between ZG Warehouses also does not attract GST. By paying a license fee to Singapore Customs a trader can convert whole or part of his warehouse into ZG Warehouse through the Zero GST Warehouse Scheme (ZGS).

Trade Finance

In Singapore almost all traders resort to Letter of Credit (LC) which eliminates the risk of non –payment against delivery for the seller and risk of non-delivery against payment for the buyer. It is a letter of undertaking from the buyer’s bank to pay an exporter, through the exporter’s bank, for goods on behalf of the buyer. A valid LC opens up other financing options such as the following.

Back-to-Back Letter Of Credit is opened on the same terms and conditions as the original L/C and this enables a trader to procure goods from a third party for export to the buyer in the original LC.

Trust Receipts are loan from bank to procure the Goods for which the LC was opened.

Packing Credit is an overdraft or loan for a particular shipment of goods. It can either be pre-shipment financing, where repayment is made when goods are shipped or be post-shipment finance, where repayment is made when the buyer has paid for the goods.

Aside from LC Short term finance from banks are available in the form of:

• Overdraft – a trader can overdraw up to preset amount as agreed with the bank. Interest is charged on overdrawn amount.

• Transaction Loan – loan against confirmed order to buy materials in order to fulfill the order. It largely  depend on the credibility of the ordering party.

• Term Loan – loan against collateral. Credibility, business outlook & track record and cash flow play a key role for this.

• Factoring Loans – instant payment against outstanding invoices of the trader. A fee of up to 15% is charged for collecting the payment from the clients.

• Revolving Credit Arrangement – Trader can draw from the funds made available by the bank for a fee and top it up regularly.

Trade Insurance

Export Credit Insurance: It insures the goods against damage, theft and loss and also protects the exporter against non-payment by the buyer. It also mitigates the risk when dealing with new riskier markets. This also makes it easier to get loan from banks. The policy can be used as collateral and banks may be willing to charge lower rates for loans as the risks are reduced. Such Insurance provides cover from commercial risks such as insolvency of the buyer, and non-commercial risks like non-payment or frustration of the contract due to war or revolution. However, insurance does not cover risks like those inherent in the nature of the goods, for instance with perishable goods, or failure by the exporter to obtain necessary licenses needed for import or foreign transfers.
To give the local traders a leg up in the international market International Enterprise (IE) Singapore launched a Trade Credit Insurance Programme or TCI under which the underwriters provide insurance coverage for traders at attractive premium rates.

What Is A Hedge Fund?

The Singapore Code on Collective Investment Schemes (issued under the Securities and Futures Act 2001 and administered by the Monetary Authority of Singapore (MAS)) defines hedge funds in the following way:

There are different characteristics and investment strategies that define hedge funds. In general, a hedge fund seeks to deliver an “absolute” return independent of the directional move of equity, fixed income or cash markets. In considering whether a fund falls within these guidelines, MAS (Monetary Authority of Singapore) would consider, but not restricted to the following factors:

1. Strategies that use leverage, short-selling, arbitrage, derivatives and
2. Investment in non-mainstream asset classes (investments other than listed equities, bonds and cash)

Hedge Fund Structures

Based on the domicile, hedge funds are classified as

Domestic (Onshore) funds
Foreign (Offshore) funds

Domestic or Onshore funds are Singapore domiciled funds, therefore are governed by the Hedge Fund Guidelines set out in the Code on Collective Investment Scheme (the “Code”) issued by the Monetary Authority of Singapore (MAS). Trust and Company are typical structures used by Onshore Funds but from 2009 Limited Partnership is also an available fund vehicle.

Foreign or Offshore funds are funds established in jurisdictions other than Singapore.

Domestic funds can be offered to both domestic and foreign investors but conventionally it is marketed to the domestic investors only. Subject to certain conditions Offshore Funds can be marketed to domestic investors.

Distribution of hedge funds to retail investors is generally through distributor banks and licensed financial advisors. Distribution of non retail hedge funds is through private banks and other exempt institutions

Licensing Requirements

Fund managers operating with not more than 30 qualified investors are exempted from licensing.  A “qualified investor” includes a fund (e.g. the hedge fund) which is (i) offered in Singapore only to accredited investors, meaning an individual with net assets exceeding S$2 million or a corporation with net assets exceeding S$10 million, or (ii) if offered elsewhere, such offer or invitation is made only to accredited investors, or investors in an equivalent class under the laws of the country or territory in which the offer is made. Therefore a qualifying hedge fund would count as “one” qualified investor. This is an option adopted by hedge fund managers/sub-managers in Singapore

The fund managers planning to market a fund to retail investors will have to obtain a Capital Markets Services (CMS) License from the Monetary Authority of Singapore (MAS) under the Securities and Futures Act (Chapter 289) (SFA). A minimum capital requirement must be met to qualify for the CMS License. Hedge funds offered to retail investors and constituted in Singapore are called Authorized unit trusts.

Offshore Fund Managers promoting to Singapore investors must be licensed or regulated in the jurisdiction of its principal place of business and be fit and proper. Offshore hedge funds offered to retail investors in Singapore are called Recognized unit trusts.

The investment adviser promoting a fund would need a Financial Adviser’s license (“FA Licence”). An exemption is available on the basis that a person resident in Singapore who acts as a financial adviser to not more than 30 accredited investors is exempt from licensing. This option is only viable if the Offshore fund manager qualifies as an accredited investor.

The following activities are regulated by Securities and Futures Act (SFA) and require a Capital Markets Services (CMS) License from the Monetary Authority of Singapore (MAS)

• Dealing in securities
• Trading in futures contracts
• Leveraged foreign exchange trading
• Advising on corporate finance
• Fund management
• Real estate investment trust management
• Securities financing
• Providing custodial services for securities

The following activities are regulated by Financial Advisers Act (FAA) and require a Financial Adviser’s license (“FA License”)

• Marketing of unit trusts
• Offering of life insurance products
• Advisory services on investment products including life insurance policies, foreign exchange contracts, etc.
• Issuance of investment reports

Unless specifically exempted and funds with less than 30 qualified investors all other schemes and persons engaged in any of the above stated activities must obtain the appropriate license.

Overview of Regulations

Regulations of Marketing to Retail Investors

Promotion of hedge funds to retail investors is allowed if it is either an authorized or recognized funds.

The minimum subscription requirements are the same for Onshore and Offshore funds offered to retail investors and they are

• Single hedge funds: S$100,000
• Hedge fund-of-funds (FOHF): S$20,000
• Capital protected/guaranteed hedge funds: No minimum

A prospectus in compliance with the SFA must be lodged and registered in the case of funds offered to retail investors. In the case of authorized Offshore Funds the foreign prospectus can be used if it contains all the information required under the SFA.

Ample measures are in place to protect the interest of retail investors, and there is substantial emphasize on disclosure of risks and uncertainties of the returns.  Therefore the prospectus must state the material differences between the hedge fund and other types of collective investment schemes and must state that only relatively little information on how the hedge fund and underlying hedge funds are managed will be available, that there is limited liquidity and that most of the underlying hedge funds are subject to minimal regulation etc.  Similarly marketing materials must highlight the risks involved and reveal information such as the fees and charges payable. Appendix 4 of the Code on Collective Investment Schemes contains a list of common examples (not exhaustive) of such disclosures.

In the case of Offshore funds that are recognized for retail subscription there must be a representative for the scheme in Singapore to act as a liaison between investors and the foreign manager. The representative must be an individual, a company incorporated in Singapore, or a foreign company registered in Singapore under the Companies Act. The Offshore Fund manager (together with its related companies) must manage at least S$500 million of discretionary funds in Singapore.

Recognized Offshore funds, for retail subscription are not subject to the investment guidelines set out in the Code of Collective Investment Schemes however are approved on the basis of sufficient regulatory oversight in the home jurisdiction. The MAS has the discretion to determine if a foreign jurisdiction’s regulatory framework is acceptable and would at the least require that the applicable regulatory framework is similar to that of Singapore.

In the interest of the retail investors the Onshore Funds authorized for retail subscriptions are subject to the following regulations

Regulation of Managers

The manager of a single hedge fund should have expertise in managing such schemes. Where investment decisions are outsourced to a sub-manager or adviser, the sub-manager or adviser should have expertise in managing such schemes. The professional experience, qualifications, assets under management and performance history of the manager or its sub-manager or adviser will be taken into account for assessing the expertise.  The manager should have at least 2 executives who each have at least 5 years of experience in the management of hedge funds. In the case of FOHF, out of the 5 years at least 3 years must be in the management of FOHFs

Regulation of Investment

A Singapore single hedge fund may invest in another single hedge fund which is not a feeder fund. A Singapore FOHF may invest in another FOHF which should only invest directly in other hedge funds and not through another FOHF or a feeder fund.

In the case of Fund of Hedge Funds (FOHF) it should have diversification as one of its key objectives. The manager should have in place strategies to achieve adequate diversification and ensure that the fund is in line with the diversification strategy at all times. An FOHF should be diversified across at least 15 hedge fund managers or have not more than 8% allocated to a single hedge fund manager.

Regulation of Liability of Investors

The liability of investors must be limited to their investment. For this purpose, the constitutive documents of the hedge fund should contain a provision limiting the liability of investors to their investment in the scheme.

Regulation of Reporting

The manager should prepare and furnish to the trustee the annual audited accounts and reports, semi-annual accounts and reports, and quarterly reports for each of the four quarters of each financial year. The trustee must audit and send or cause to be sent the reports to the participants as stipulated in appendix 4a of the Code on Collective Investment Schemes. The reports should disclose the portfolio statement and top 10 holdings but this requirement is waived, if such disclosure is prejudicial to the interests of the scheme. Alternatively, the aggregate exposure for the scheme categorized according to country, industry, asset class and/or credit rating of debt securities should be disclosed. The performance fees paid or payable by the scheme for the period under review should be disclosed.

Regulation of Leverage

A single hedge fund may be leveraged up to the extent disclosed in the prospectus. An FOHF may borrow only for the purposes of meeting redemptions and short-term (not more than 3 months) bridging requirements. Aggregate borrowings for such purposes should not exceed 25% of the deposited property of the FOHF at the time the borrowing.

Regulations of Marketing to Accredited Investors

Restricted authorized (Onshore) hedge funds and restricted recognized (Offshore)hedge funds can be offered only to accredited investors. Onshore hedge funds offered to accredited investors (and other relevant persons) can only be offered to certain types of investors as defined under Section 305 of the SFA. These investors require a minimum total net asset size or annual income exceeding a certain amount (as set out in Section 4(A) of the SFA) or at a minimum of SGD 200,000 per transaction. The same applies to Offshore recognized schemes.

But unlike funds offered to retail investors, the restricted Offshore and Onshore Funds offered only to the accredited investors are not required to comply with any investment guidelines. Unlike offers to retail investors, there is no requirement for any prospectus or other offering document.

Regulations of Marketing to Institutional Investors

For both Onshore and Offshore funds marketed to institutional investors, there are no minimum subscription requirements for all funds (including hedge funds). As defined in section 4A of the SFA are exempted from all authorization and prospectus requirements under the SFA.

Taxation

An Onshore fund will generally be liable to Singapore income tax if it derives income sourced or deemed to be sourced in Singapore or receives foreign-sourced income in Singapore. A domestic fund is generally required to file an annual tax return with the Singapore tax authorities. Onshore funds which are established as Singapore-resident companies can generally avail of Singapore’s double tax agreements provided these funds can fulfill the relevant substance requirements.

Tax exemptions are available under the Singapore Income Tax Act (SITA) for foreign-sourced dividend, foreign branch profits, and foreign-sourced service income received or deemed received in Singapore, subject to conditions. Gains or profits which are capital in nature are not subject to Singapore income tax.

A foreign or Offshore fund distributed in Singapore which are not managed/ advised by a Singapore resident fund manager/ investment adviser are generally not subject to tax in Singapore and are not required to file an annual tax return to the Singapore tax authorities. However Offshore Funds are deemed to have permanent establishment in Singapore by virtue of their Singapore based fund managers, therefore are deemed to generate earnings from Singapore therefore are invariably subjected to tax. In this case, the foreign fund may be required to file a tax return with the Singapore tax authorities. In cases where no income is subject to Singapore tax, there could be reporting requirements for a foreign fund.

Tax Incentives

Exemption for Offshore Funds

A person in Singapore who manages a fund on a discretionary basis (whether Offshore or Onshore) will create a taxable presence for the fund in Singapore. However there are some exemptions available.

An Offshore fund managed by a Singapore-based fund manager will be exempt from tax on specified income from designated investments if the fund is a qualifying fund. For a fund to be a qualifying fund, in general, it

• should not be resident in Singapore and
• cannot be 100% owned by Singapore investors. Designated investments include investment like stocks, shares, securities, etc. It must be noted, immovable property in Singapore is excluded from the list.

But for an investor to derive tax exemption on incomes from qualifying funds, the investor must be

• An individual investor
• A foreign corporate body without presence or other forms of business activity in Singapore. In the case of foreign company, with permanent establishment in Singapore, it must not use Singapore generated funds to invest in qualifying funds
• specific Singapore government entities
• A Singapore resident corporate investor that owns not more than 30% (or 50% if the fund has 10 or more investors) of the qualifying fund.

Exemption for Onshore Funds

The above stated exemptions for offshore funds are also made available to Singapore funds with the introduction of Singapore Resident Fund Scheme, to encourage fund managers to base their fund vehicles in Singapore, by giving the same tax exemptions. To avail the exemptions a Singapore constituted fund must meet the following conditions:

• It must be approved by MAS
• The fund vehicle must particularly be a company

The key advantage that a Singapore fund has over an offshore fund is the access to Singapore’s large tax treaty network with over 50 countries.

Enhanced Tier Fund Management Scheme

This scheme was introduced to provide greater flexibility to the managers to source investors. There is no restriction on the residency of the investors or the fund vehicles. For funds under this scheme there is no cap on the percentage of Singapore investors. In order to qualify under this scheme the scheme must be approved by MAS and include a minimum fund size of SGD50 million at the time of application. The enhanced tier is open to fund vehicles in the form of companies, trusts and limited partnerships.

Fund Management Incentive Scheme

The FSI-FM scheme aims to promote fund management sector in Singapore. This incentive provides a concessionary tax rate of 10% for fund management and investment advisory activities, subject to certain conditions. For new applicants to qualify for a minimum 5 year award, the applicant:

• must be licensed or exempted from having a CMS license in respect of its fund management or investment advisory activities
• must have at least three professional staff engaged only in fund management or investment advisory services. Such professionals must earn a basic monthly income of more than SGD 3,500, and is engaged substantially in qualifying activities.

It must be noted that MAS will asses other factors such as growth targets in terms of assets under management, business spending etc while considering the applicants under this scheme

Investors are increasingly considering hedge funds as a source of diversification.  Singapore implements the appropriate responses to build strong foundations for the fund administration and domiciliation activities. The strong fundamentals will enhance Singapore’s status as the Asian magnate of the fund management industry attracting capital, talent, managers and opportunities to build a thriving industry ecosystem.

To begin, you will need to make sure your business is already registered with the Accounting and Corporate Regulatory Authority of Singapore (ACRA). Your business, may be retail, must register as a sole proprietorship, partnership or a private limited company.

Two more things have to happen before you can start importing goods into Singapore. First, after you have the business registered with ACRA, you will then activate your Custom Accounts using ACRA assigned Unique Entity Number (UEN) and Singpass. Second, you will have to be registered as a trader with Singapore Customs. As a trader you will be able to apply for permits using TradeNet® for each shipment of goods.

Generally most goods are considered ‘non-controlled goods’ such as clothes and shoes. You do not need license to import ‘non-controlled goods’. However, if you are going import “controlled goods” such as food and animal products, drugs or telecommunication items, you will need to apply for appropriate license for each category from the ‘competent authority’. An example would be importing animals and birds products, you have to apply for a license from the Agri-food and Veterinary Authority of Singapore.

Be forewarn that there is a significant amount of paperwork to submit for application of import permit for each shipment with the addition of customs documentation and clearance; insurance papers; and paperwork for ‘controlled goods’. There are also taxes, duties and fees to pay. You can do all the paperwork as you are also a registered trader with access to TradeNet®, however, most businesses choose to relegate the task to freight forwarders and cargo agents since the import procedure is quite complex.

Related Topics

Choosing a Name

An important thing to note is choosing the appropriate name for your school. The name of your business registered with ACRA has to be the same name as the school if the business is registered as sole proprietorship or partnership. The name cannot have the words ‘Singapore’ and ‘National’; ‘University’, ‘Conservatory’ and ‘College’, or ‘International’.

To use the term ‘Academy’ or ‘Institution’ as part the school name usually indicates that it is a school that offers post secondary or tertiary education, and the facilities can accommodate 500 students at any given time.

Choosing a Premise

There are stringent rules and guidelines for educational facilities such as the size of classroom and student ratio. A planning permission is required and has to be obtain from Urban Redevelopment Authority of Singapore (URA). A premise for private academic school requires a Class II approval from URA. It’s best to understand and fulfill the rules outlined by URA then to risk losing accreditation.

If you plan to renovate the space, you will need to apply for a building work permit through Building and Construction Authority of Singapore (BCA). When the building works are complete, you will also need to obtain from BCA: a Certificate of Statutory Completion and/or a Temporary Occupation Permit before you can occupy the space.

You will also need a Fire Safety Certificate (FSC) prior to occupying the building. You can obtain an FSC from Singapore Civil Defense Force through a registered architect or engineer. All renovation works are to be performed by certified or licensed contractors including architects. A business signage that is placed on the building will require an application of an Advertisement License from BCA.

Registering a Private School

It is mandatory for all private academic schools, including schools that offer External Degree Programs (EDP), to register with MOE in Singapore. Each EDP has to be registered individually; however, being registered is not akin to gaining accreditation or recognition from MOE.

When you register the school, you are also required to register the school curriculum and teachers. A education plan for each course has be submitted that states the learning outcomes, teaching methodology, class schedules, resources and materials. You will need to also submit the qualification documents of the teachers conducting the courses.

Starting on December 21, 2009, all private academic schools must also register with the Council for Private Education to operate in or from Singapore The schools affected are those that offer full-time courses in degree programs and placement tests. Schools that offer online and/or international curriculum are required to register. To read more about the Council of Private Education, please see our article on Mandatory Registration for Private Education Institutions.

Committee of Management

Part of the registration requisites also stipulates that a private academic school to have a Committee of Management. It has to have a minimum of one member and a maximum of nine. The Committee of Management’s role is to ensure the school stays in compliance with the provisions of the Education Act.

Enrolling International Students

If you plan to open programs in your school to international students, you will need to apply for Case Trust for Education. Without the certification from Case Trust Singapore, you will not be allowed to enroll students in any of the programs in your school.

Rikvin has help thousands of clients incorporate their companies since 1995. We can help you register your company with ACRA in less than 24 hours. Our comprehensive corporate services can provide you with a customized service that includes application for pertinent licenses and permits that you require to set up an private academic school. To learn more about our Incorporation Services please go to Singapore Company Incorporation Services

1. Register your business first with the Accounting and Corporate Regulatory Authority of Singapore (ACRA). Your business must register as a sole proprietorship, partnership or a private limited company. Rikvin is Singapore’s leading company incorporation specialist. We can help advise you on the business structure that is most suitable for your company.
2. Secure a premise for your business. The premise has to be zoned for commercial use and designated for arts or music use by URA.

Securing a Premise

Once you have secured a space, do make sure that it is current on building codes and fire safety measures. If the existing premise is not set up to accommodate an arts or music establishment, you can discuss with the landlord to apply for a Change of Use with the Urban Redevelopment Board. Depending on the type of arts or music business you plan to have, the facility may or may not have stringent guidelines in the design and layout, so it will be worthwhile for you to do the research for the specific entertainment or recreation business you intend to set up to avoid rejection when inspected.

Any major renovation of the premise requires an application for a building work permit through Building and Construction Authority of Singapore (BCA). When the building works are complete, you will also need to obtain from BCA: a Certificate of Statutory Completion and/or a Temporary Occupation Permit before you can occupy the space. All renovation works are to be performed by certified or licensed contractors including architects. A business signage that is to be placed on the building will require an application of an Advertisement License from BCA.
You will also need a Fire Safety Certificate (FSC) prior to occupying the building. You can obtain an FSC from Singapore Civil Defense Force through a registered architect or engineer.

Arts Entertainment Licenses & Permits

Media Development Authority (MDA) presides over the following licenses that allow the operation of public arts and entertainment events such as live concerts, poetry reading and art exhibition; screening of films that are rated NC 16, M18 and R21; and the use of TV on the business premise. You may or may not require all of these licenses.

• Arts Entertainment License
• Film Exhibition License
• Non-residential TV License

Depending on the kind of events you plan to organize that are open to the public, you may need to apply one of the following permits. It is advisable for you to check with the Singapore Police Force (SPF) on the appropriate license to apply for. In any case, all events will require at least a Public Entertainment License or a Public Entertainment Ad-Hoc License. You will also need to obtain the Copyright Permit (for Ad-Hoc Events) from the Composers and Authors Society of Singapore to play copyrighted music at the events.

If you need to engage specialists from a foreign country to assist you in organizing an arts or music event you can find out from Ministry of Manpower (MOM) is you qualify to hire foreign workers. MOM determines, on a case-by-case basis, if you qualify to hire foreign workers. All foreign workers working in your business must have valid employment passes or visas.

For foreigners who are interested in setting up an arts or music business in Singapore, it would be helpful to seek an agency that specializes in company incorporation in Singapore. It is, in fact, necessary to engage a law or corporate services agency to assist you in incorporating a business in Singapore with ACRA.

Rikvin has help thousands of clients set up their companies since 1995. We can help you register your company with ACRA in less than 24 hours. Our comprehensive corporate services can provide you with a customized service that includes application for pertinent licenses and permits that you require to set up an arts or music business. To learn more about our Incorporation Services please go to Singapore Company Incorporation Services

In many cases setting up a retail business in Singapore is relatively straight forward. The nature of your retail business and the space often determine whether you will need license and permit to operate. In any case, you will need to secure a premise for your retail operation first. The premise has to be zoned for commercial use. You are not allowed to use residential premises for any retail activities. You will then need to register your business with the Accounting and Corporate Regulatory Authority of Singapore (ACRA). Your business, though retail, must register as a sole proprietorship, partnership or a private limited company. Rikvin is corporate service agency that specializes in business setup. We can advise you on the suitable business structure based on your needs.

Choosing a Premise

Once you have secured a retail space do make sure that it is current on building codes and fire safety measures. If you plan to renovate the shop, you will need to apply for a building work permit through Building and Construction Authority of Singapore (BCA). While waiting for the building works approval, you will also need to obtain from BCA: a Certificate of Statutory Completion and a Temporary Occupation Permit before you can occupy the space. All renovation works are to be performed by certified or licensed contractors including architects. Almost all retail shops have a signage for their businesses. You will need to apply for an Advertisement License from BCA to place a signage on a building.

You need not be concerned if the space is already set up for retail; otherwise, you will need to liaise with the landlord to convert the existing space into a retail one. Oftentimes it just requires an application for Change of Use permit from Urban Redevelopment Authority. You will also need the necessary licenses or permits if your retail business involves food, animal products, drugs and etc. The three main Singapore government agencies that preside many of these licenses are National Environment Agency, Agri-food and Veterinary Authority and Health Sciences Authority.

You may wish to obtain your retail goods from wholesalers in Singapore or you can import your own goods. For more information on importing goods, please see our article How to Set Up an Import Business. You will, of course, need hired help to assist you in selling your goods. Ministry of Manpower determines, on a case-by-case basis, if you qualify to hire foreign workers. All foreign workers working in your retail business must have valid employment passes or visas. Consequences for failure to comply with employment regulation include fines and imprisonment.

For foreigners who are interested in setting up a retail business in Singapore, it would be helpful to seek an agency that specializes in company incorporation in Singapore. It is, in fact, necessary to engage a law or corporate services agency to assist you in incorporating a business in Singapore with ACRA.

Rikvin is the leading authority in company formation in Singapore. We can help you register your company with ACRA in less than 24 hours. Our comprehensive corporate services can provide you with a customized service that includes application for pertinent licenses and permits that you require to establish a retail business. To learn more about our Incorporation Services please go to Singapore Company Incorporation Services

• Register your business first with the Accounting and Corporate Regulatory Authority of Singapore (ACRA). Your business must register as a sole proprietorship, partnership or a private limited company. A private limited company is the best option given the liabilities involved the nature of the shipping business. Rikvin is Singapore’s leading specialist on company formation. We can help advise you on the best business structure for your company setup.
• Secure a premise for your business. The premise has to be zoned for commercial use and is identified for water transport purpose by Urban Redevelopment Authority (URA).

Securing a Premise

Once you have secured a space, do make sure that it is current on building codes and fire safety measures. If the premise needs to be converted into a warehouse for storage of goods, you will have to obtain a permit from URA. URA has a specific rule called the 60:40 Rule for the conversion. The rule stipulates that at least 60% of the gross floor area (GFA) is designated for warehouse usage; and 40% of the GFA can be used for office space, cafeteria or communal facilities.

Any major renovation of the premise requires an application for a building work permit through Building and Construction Authority of Singapore (BCA). When the building works are complete, you will also need to obtain from BCA: a Certificate of Statutory Completion and/or a Temporary Occupation Permit before you can occupy the space. All renovation works are to be performed by certified or licensed contractors including architects. A business signage that is to be placed on the building will require an application of an Advertisement License from BCA.

Occupational Safety and Health Division at Ministry of Manpower (MOM) will also have to approve the premise to ensure that it is a safe workplace. You will also need a Fire Safety Certificate (FSC) prior to occupying the building. You can obtain an FSC from Singapore Civil Defense Force through a registered architect or engineer.

Maritime Licenses & Permits

Operating a shipping business requires a whole series of licenses and permits. You will need to obtain a Ship Station License from Infocomm Development Authority of Singapore for all maritime communications equipment installed on commercial ships that are registered in Singapore. The equipment list includes radio transmitters and satellite disks.

Maritime and Port Authority of Singapore (MPA) presides over the following permits that allow transporting of cargo such as crude oil at approved wharves; offloading of fuel and ship repairs; launching of new vessels; and most importantly, official clearance for ships to call at or depart from ports of entry in Singapore waters. You may or may not require all of these permits.

• Permit To Berth Tankers/Conventional Vessels Carrying Bulk Liquid Cargo
• Permit To Conduct De-Bunkering Operation In Port
• Permit To Launch New Vessel In Port
• Port Clearance Formalities For Arriving And Departing Vessels

Additional Licenses & Permits

Depending on the cargo you plan to transport, you may or may not require additional licenses or permits. If any of the goods are considered hazardous or flammable, you will have to apply for Permit to Buy and Store Hazardous Substances from National Environment Agency (NEA) and Singapore Civil Defense Force respectively. You can find the list of controlled hazardous substances at http://app2.nea.gov.sg/haz_sub.aspx.

All ships required to be certified for the requisite sanitation condition to transport cargos in international and Singapore waters. National Environment Agency (NEA) conducts an on-site inspection prior to issuing a Ship Sanitation Control / Ship Sanitation Control Exemption Certificate.

Your shipping firm may include warehousing business, which means you involve working with the Singapore Customs. You will need to activate your customs account using ACRA assigned Unique Entity Number (UEN) and Singpass. For more information on Singapore Customs and importing goods into Singapore, please see our article on To Apply for License and Permits to Import Goods into Singapore.

Rikvin has help thousands of clients incorporate their companies since 1995. We can help you register your company with ACRA in less than 24 hours. Our comprehensive corporate services can provide you with a customized service that includes application for pertinent licenses and permits that you require to set up a shipping company. To learn more about our Incorporation Services please go to Singapore Company Incorporation Services