Overview: Free Trade Zones in Singapore
Singapore Free trade zones are regions where businesses can acquire, market, and produce products without having to pay taxes or additional excise. Singapore is known internationally for its top-player free trade agreements, which are at the heart of its international commercial strategy.
Singapore’s trade deals, asset assurance contracts, and more than 80 double Tax Treaties facilitate easy trading with almost every country on the planet. The Singapore free zones are developments that provide space for storage to both domestic and international businesses in Singapore.
In this article, we will be going to discuss more in-depth the various Singapore Free trade Zones accessible for the firm. So, without any further ado, let’s begin with it.
The Nine Free Trade Zones in Singapore
The nine Singapore free trade zones are as follows:
- Keppel Distripark
- Keppel Distripark Linkbridge
- Changi Airport Cargo Terminal Complex
- Airport Logistics Park of Singapore
- Tanjong Pagar Terminal and Keppel Terminal
- Brani Terminal
- Pasir Panjang Terminal
- Jurong Port
- Sembawang Wharves
Singapore Free Trade Zones Regulations
The free trade Zone Act in Singapore was established in the year 1966 and got its amendments in the year 2014.
Some of the Singapore free trade zones regulates, that the Free trade Zone Act states are as follows:
- The consequences one can face for not adhering to the free zone officials’ guidelines.
- The Free Zone Steering Committee, the Head of Singapore Customs, and the Minister for Business and Commerce are the authorities for monitoring the actions of corporate entities in free trade zones.
- The licenses and authorizations needed in the free zones to make and distribute items.
- Services that may be conducted by free zone enterprises in Singapore.
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Advantages of Singapore Free Trade Zones
The fundamental benefit of all free zones established business in Singapore is the massive storage services available including both domestic and international businesses. All of Singapore’s free zones are adjacent to many of the city-busiest country’s waterways, giving cargo industries a significant edge.
Other benefits of Singapore free trade zones include:
- Taxes are not levied on products transported into Singapore’s industrial estates.
- Customs procedures will be simplified for companies based in free zones.
- In the free zones, there are still no taxes charges on items moving and being maintained.
- Inside the free zone, there are no permissions or licenses required for the transport of goods of non-controllable commodities.
- An importer must get customs clearance for bringing products into the country. When importing into FTZs, however, this documentation is not necessary.
Opening a Company In A Singapore Free Trade Zone
Singapore’s superior transport network capabilities make it a good free trade zone harbor and a sufficient storage choice for several enterprises both domestically and globally. It has also streamlined immigration practices to make the free trade zone terminals and regions even more desirable and business-friendly. The accessible placement of these FTZ roads, which is close to Singapore Port operations as well as Changi Airport Near, has surely benefited the nation because it attracts businessmen, especially those in the commerce and production process.
Members in Singapore can leverage the power of the Singapore free trade zone’s numerous benefits.
Among them are:
- The transshipment of non-controlled items does not require authorization.
- Taxation is not levied on importing goods into the FTZ if they are then transferred and not marketed in Singapore.
- Businesses that operate in the FTZ are not subject to additional duties.
Requirements for Starting a Business in a Free Trade Zone in Singapore
Singapore has a large number of free zones, which is surprising for such a relatively small nation, and each one provides customized amenities to free zone enterprises based there.
The requirements for starting a business in a trade free zone in Singapore are as follows:
- The founder’s visa or identification card.
- The ensuring finance required will be determined by the company’s income.
- The firm title must be registered with the Trademark Registry.
- The articles of the foundation are required.
- If a firm using an FTZ needs a Singapore FTZ warehouse, it must possess a paid-up share capital of $100,000.
- Those who merely seek a coworking space ought to possess a paid initial capital of S$50,000.
- In the initial year of existence, the paid-up share capital should be placed; nevertheless, the business is permitted to make use of this money for operating costs.
Permits and licenses for operating in Singapore free trade Zones
Businesses must get a license or concession from one of several organizations supervising the appropriate free trade zone is required to function in one of Singapore’s free trade zones.
To function in Singapore’s free zones, you’ll need two sorts of permissions or licenses. One is for enterprise customers, while the other is for consumers and has a limited time frame. To obtain a permit, you must decide to accept the appropriate agency’s license restrictions, relevant legislation, and information protection.
Provisional permission can be granted for a period of time ranging from 24hrs to 14 days. Corporation registrations are typically available for one to three years and come with a variety of prices. An official is usually able to grant one of the 2 kinds of licenses in less than three days.
The following organizations who are supervising the free trade zone are as follows:
- Changi Airport Group Pte Ltd: They are in charge of Singapore’s Cochin International Airport Container Terminals Building and Airline Operations Area.
- PSA Corporations Limited: Tanjong Pagar and Keppel Terminals, Keppel Distripark, Sembawang Wharves, Keppel Distripark Linkbridge, Brani Terminal, and Pasir Panjang Terminal are all under their control.
- Jurong Port Pte Ltd: It is the body in charge of running Jurong Port.
Bonded and FTZ Warehouses have Certain Commonalities
The bonded and FTZ warehouses in Singapore have really no holding time constraints. You won’t have to transfer your whole goods to a separate facility when the preservation supplies run out because of the unlimited storage duration.
Expenditure on customs and levies on products moving through secured or free trade zones will be postponed unless they depart the warehouse to join a nation’s marketplace. If the items are shipped from a bonded or FTZ warehouse to some other nation, only the target state’s levies will be charged, not the storage states.
Bonded and FTZ warehouses both allow non-dutiable items to be stored for extended periods of time while postponing tax bills until they reach a nation’s open economy, subjected to warehousing costs and levies.
As an online merchant aiming to improve your distribution network, these warehouses can help you plan for international shipments by lowering the management of the supply company’s pick-up and the first turnaround times, especially if you select one near a highway.
Free Trade Zone Warehouse VS Bonded
Although there are few distinctions between how bonded and FTZ warehouses are handled in Singapore, other nations may have different policies regarding customs and FTZs. As a result, the conditions of some countries’ bonded warehouses may vary greatly from those of their FTZ warehouses.
FTZ warehouses are situated within the nation’s authorized economic zones on the other hand bonded are overseen by the nation’s customs department. It implies that bonded facilities are not needed to be located inside the free trade zone in order to function, which may be advantageous in some situations.
Despite bonded warehouses, that can only hold export items in many situations, FTZ warehouses can also retain domestic products alongside imports. Would use an FTZ warehouse might be beneficial under certain situations, such as if you want to establish up a community production base for your goods in addition to transporting them worldwide from their originating country.
Ideal Free Trade Zone In Singapore For New Business
Given that all of Singapore’s free zones have comparable standard operating procedures, deciding on the best trade zone for a new enterprise might be tricky. So here are a few points that can help you decide on the ideal free trade zone in Singapore for new business.
- Changi Airport offers over 70 hectare of land available for businesses to utilize.
- There are 14 specialized industrial parking places in the Changi Airport Free Zone.
- Changi Airport is capable of handling over 3 million tonnes of waste annually.
- Keppel Districts Park covers about 45 warehouse enclosed units ranging in size from 1,000 to 5,000 square meters.
- Jurong Port, one of the city-largest country’s free zones, has about 170,000 square meters of warehouse area.
- On either side, the Changi Airport Group has almost 100,000 square meters of office and storage space.
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Open Trade Parks is an important critical infrastructure that supports Singapore’s reputation as a top player society with easy and high trade policies that help the nation expand its world commerce. Companies based in these free trade zones benefit from simplified trade facilitation as long as their items are transported and not marketed in Singapore. The businesses established in the FTZ are exempt from taxes such as the goods and services tax and customs fees.
Odint Consultancy will help you if you want to operate your business in Singapore’s FTZs and help acquiring the necessary permits, or if you want to start up a business in Singapore. Experts at Odint Consulting have years of experience supporting clients with the establishment of their businesses.
In an effort to promote entrepôt trade, Singapore has developed nine Free Trade Zones (FTZs). However, Singapore Customs, which is in charge of policing trade in Singapore, has also put in place stringent restrictions to control what happens inside these FTZs.
If a company using an FTZ needs a warehouse in the Singapore free trade zone, they must have a paid up share capital of $100,000. On the other hand, those who merely need an office space need a paid up share capital of S$50,000.
Yes there is three free trade zone in Singapore Changi Airport Group Pte Ltd, PSA Corporations Limited, Jurong Port Pte Ltd.
The Maritime Silk Road ran right through Singapore, making it convenient for traders to stop by with products. Singapore’s establishment as a free port in 1819 made it possible for products to be traded freely without having to pay expensive fees.
Since Singapore is a free port, there aren’t many excise and import taxes. The cornerstone of the nation’s foreign trade policy is its free trade philosophy.
Working in FTZs necessitates the acquisition of proper licenses. Firms must get a license or license from one of several entities administering the appropriate FTZ is required to function in one of Singapore’s economic zones.