Singapore Companies in Free Trade Zones and Freeport
How much do you understand about Free Trade Zones? Free Trade Zones, better known by abbreviation FTZ are designated areas in certain countries where companies are free to import, sell or export goods without having to worry about customs, excise duties or being imposed with the Goods and Services Tax.
Singapore is a known FTZ and companies here are able to benefit from transportation facilities, especially companies who are in the trading sector. FTZs in Singapore a usually estates or locations which offer the option of storage facilities for both foreign and local companies. Currently in Singapore, the Singaporean authorities are operating about nine known FTZ areas, which are:
- Tanjong Pagar Terminal & Keppel Terminal
- Jurong Port
- Pasir Panjang Terminal
- The Changi Airport Group
- Sembawag Wharves
- Changi Airport Terminal Complex
- Airport Logistics Park of Singapore
- Brani Terminal
- The Keppel District Park
Free Trade Zone Companies in Singapore
Singapore makes an excellent FTZ port and an ideal storage solution for many companies both locally and internationally, thanks to the country’s excellent transportation infrastructure facilities. Singapore also has simplified their customs procedures to make the FTZ ports and areas even more ideal and conducive to businesses. The convenient location of these FTZ ports which is close to the Singapore Ports and Terminals and the Changi International Airport has certainly worked in the country’s favour as this appeals to entrepreneurs, particularly those who are involved in the trading and shipping line of work.
Companies which are registered in Singapore stand to benefit from the numerous advantages which are offered by the FTZ. Among the benefits that companies stand to gain include:
- Permits are not required for the transhipment of non-controlled goods
- Goods and Services Tax is not imposed on products which are imported into the FTZ as long as these products are thereafter exported and not sold locally within Singapore
- No customs duties imposed on companies conducting business in the FTZ
Registering Your Company in Singapore’s Free Trade Zones
Both local and foreign companies are required to comply with the Free Trade Zones Act. Companies are required to obtain the necessary permits from the free trade zone authority, and companies which are using the FTZ must have a paid up share capital of SG$100,000 if they require a warehouse. Companies who only require an office space on the other hand, would need a paid up share capital of SG$50,000. These paid up share capitals must be deposited during the company’s first year of operations, but they will be allowed to use this capital for business expenses.
The documents which companies will be required to submit when putting forth an application for a warehouse or office as a FTZ port include:
- A company certificate of incorporation
- The required paid up capital
- The company’s audit accounts report for the past financial year
Are you interested in running a base of operations in one of Singapore’s reputable FTZ locations? 3E Accounting can assist, call us today to find out more about how we can help you get started.