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Beginner’s Guide on Starting a Private Transportation Business in Singapore
Currently, starting a private transportation business in Singapore can be an excellent idea. With the recent pandemic, more and more people are choosing to stay indoors rather than expose themselves to the outside environment. Thus, this has led to the people being acclimated with having their products or foods delivered to their doorstep. Furthermore, this outbreak has witnessed the increase of private riders being the nation’s front-liners in terms of transportation.
In Singapore, the roads are well interconnected and provide excellent accessibility for the people to travel around seamlessly. This translates as a great demand for the country as a favourable location for major automotive industries to test their driverless vehicles. Regardless if you wish to start a maritime-based transport, air transport, aerial lift transport, road or rail transports, Singapore is a great destination to begin your venture. Plus, the Lion City has one of the best business environments in Asia with attractive tax rates and incentives. As an entrepreneur, the number of investors looking for investment opportunities also signifies good news for you.
If you are wondering how to begin starting a private transportation business in Singapore, keep reading. We will be looking into what a private transportation business is, industry practices, how you can break into it and what permits you will be needing. Plus, we’ll let you in on where you can find quality and reliable help in your entrepreneurial journey as well. If you execute your private transportation business right, you might have just hit the jackpot! You can also read more on our guide to company registration in Singapore here.
What is a Private Transportation Business?
A private transportation business refers to transporting services offered by a private company. It is a very vast field that you can explore and commercialise upon. Buses, cars, limousines, bicycles, scooters and even skateboards can be rented out for Singaporeans to use.
If you are thinking out of the box, it’s even better. Who said only humans needed to get from one place to another? You can also offer transportation services for large objects and tools for companies and factories. Or, you can help everyday people to move their furniture to and fro a new place. Apart from that, you can assist farmers and harvesters in moving their produce and livestock. The possibilities for starting a private transportation business in Singapore are endless.
Your transportation business will always be in demand as long as people need to move from one place to another. Setting up a company may be difficult, but it does not have to be that way. Check out the local company incorporation services in Singapore and find out how you can skip out on the setting up process.
Breaking Into the Private Transportation Business in Singapore
A private transportation business is bound to cost you, so before you begin your business, there are a few factors you need to tick off your list. Make sure you’ve done some of the following:
Formulate a Solid Business Plan
Diving headfirst without having a blueprint for your business is a huge and deadly mistake. Aside from addressing your company’s products and services, organisational management, marketing and financial projections, you should also include your audiences, which will be the potential investors and the public. Your business plan needs to be realistic and emphasise what you can offer your investors and clients.
Create a Budget and Outline Your Expenses (No Expenditure Is Too Small to Go on Your Budget)
Budgeting and properly laying the cost incurred can also serve as a financial report to show your business’ potential to investors (if you wish to apply for a loan). In your financial budget, do include the requirements to start your business, workforce requirements, initial inventories, fees for licenses etc. A budget allows you to have a clear picture of what state your business is in. Avoid financial obstacles by keeping a systematic track of your private transportation business’ cash flow.
Apply for Insurance
Vehicles are prone to wear and tear. Sometimes, accidents are unavoidable, regardless of how careful you or your drivers may be. Therefore, buying insurance can be an excellent way to protect your vehicles and drivers in the case of an unfortunate event. Plus, it can also protect your business financially.
Things You’ll Need for Starting a Private Transportation Business
Just like starting any other business, you must first register your company with the Accounting and Corporate Regulatory Authority (ACRA). The law necessitates business owners in Singapore to register with ACRA as it provides the public with transparency when dealing with business and transaction matters. When you begin your private transportation business, do keep in mind that your company will fall under one of these business structures:
- Sole Proprietorship
- Limited Partnership (LP)
- Limited Liability Partnership (LLP)
Needless to say, each of the business entities comes with its own sets of pros and cons. Depending on the nature and vision of your business, you may choose a business structure that benefits your company the most. For example, many companies in Singapore go with LLP. LLP is the preferred choice of a business structure due to the limited liability advantage it offers.
Licences for a Private Transportation Business
There may be plenty of licenses to apply for; however, the application process is straightforward. If you wish to offer bus or taxi services to the public, you will need to get in touch with the Land Transport Authority (LTA) and obtain a public service license. On the other hand, to provide postal services, you must contact the Infocomm Development Authority of Singapore (IMDA). You will need two licenses from IMDA: the express letter service license and a postal services operator license.
If you plan to transport chemicals, such as flammable products, you must acquire a permit from the Singapore Civil Defense Force first. Moving on, driver’s licences are necessary. . On this topic, you can apply for additional vocational licenses too. These vocational permits require individuals to undergo training as a prerequisite for their upcoming jobs.
There are various types of vocational licenses, such as:
- Taxi Driver’s Vocational Licence (TDVL)
- Private Hire Car Driver’s Vocational Licence (PDVL)
- Bus Driver’s Vocational Licence (BDVL)
- Omnibus Driver Vocational Licence (ODVL)
- Bus Attendant’s Vocational Licence (BAVL)
Keep in mind that each license has different requirements. Therefore, do read the fine print and conditions thoroughly before applying for them. Generally, the vocational permits are subject to age limits and are valid for three years. If you fill out the applications and submit the documents correctly, the process to get the licenses should be no longer than thirty working days. When your license is nearing its expiry date, you will receive a notification indicating instructions on applying for a renewal.
You will have to pay additional administrative fees if you renew your license six months after expiry. Nevertheless, if you fail to renew your license after it has expired within three years, you will need to submit a new application instead. From May 2021, LTA requires those who wish to apply for a vocational license to do so via appointment. The appointment can be made online through their official website. To know more about the vocational licence, refer here.
Every business is different – yes, even within the private transportation business in Singapore itself. To avoid breaking the law, contact your local municipal office and check with them on the types of licenses you need – just to be sure. Need a reliable corporate service provider in Singapore? We got you covered.
Incorporating a Business Has Never Been Simpler
Starting a business can be a very daunting task. You need to consider many factors. Budget and finances must be planned out beforehand. On top of that, there is much paperwork and applications to go through before your business can legally operate. Luckily, there are plenty of corporate services to choose from that can help you with the process of setting up your business.
Nevertheless, it is essential to keep in mind that not all corporate providers are created equal. This is where we can help you. We are 3E Accounting, ready to help you with starting a private transportation business in Singapore. With over a decade of experience, 3E Accounting has the diverse expertise and knowledge to swiftly assist you in setting up your business in no time. You can get an array of corporate services with our one-stop business solution! All you have to do is contact 3E Accounting and get started today!