Beginner’s Guide on Starting a Storage Business in Singapore
Are you unsure about what business you should invest your money in? Have you considered starting a storage business in Singapore? Many manufacturers, retailers, and distributors in Singapore need reliable storage facilities for monitoring and storing their goods safely, which they will sell or distribute later. You can capitalize on this demand by providing all the amenities needed for storage and making good profits.
However, starting such a venture is not an easy task, and you will need to undergo various legal formalities before commencing business operations. You will also have to understand the various risks involved in starting a storage business. Otherwise, you can also look for a corporate service provider in SG to help you.
Industry Practices for Storage Business in Singapore
Starting a storage business in Singapore is a viable option that has tremendous potential. However, make sure you collect a lot of background information on the storage industry before you come to a final decision. Know about the storage companies in your area and understand what services they are offering and the type of customers they serve.
A storage facility should be able to protect goods from unforeseen dangers like theft or fire. In addition to warehouse racking, your storage business will need to provide round-the-clock security, delivery and tracking, and an inventory management system. Think about what kind of goods you will store at your facility. Will you be storing temperature-sensitive food, chemicals, electronics, or medicines? You must also consider how you will pick up the cargo from the clients’ premi\ses and transport them safely to your premises. You have the option of either constructing your own warehouse or only providing warehousing services.
To help you avoid potential pitfalls while starting your storage business, we have put together every possible information you will need.
Useful Tips to Consider While Starting Your Storage Business
These tips will help you start your business on the right note:
1. Collect Background Information
Gather information about the storage businesses in your location, and visit their premises. Understand how they operate and what services and amenities they offer. Think about what unique services you can offer to differentiate you from your competitors.
2. Choose Your Customers
Plan about what type of customers you will serve and what products you can store at your premises. Your storage space will depend on the type of products you will store. For heavy and large industrial goods, you will require more space and large containers.
3. Prepare a Budget
Form a clear idea about your finances as you start your storage venture. You will need to factor in the costs to rent a storage facility and keep equipment like stack racks, containers, or cranes. You will also need software for tracking and managing inventory. There will be training and hiring expenses and electricity and utility bills as well.
4. Hire Experienced Personnel
You will need to hire people experienced in shipping and warehousing who can help check goods as they arrive. You will also need employees who can operate forklifts and lift goods. Your staff should also be familiar with inventory management software.
5. Select the Right Warehousing Space
Now, you will be having a fair idea of the type of goods that you will store at your premises. Acquire a warehousing facility that helps you meet client requirements and your budget as well. You will need to decide whether it is feasible to rent or build a warehousing facility.
6. Be Competitive
To stand out amid the competition, you will need to remain updated on the latest technologies. You can consider automating your facility to get an edge over other storage businesses in your area. With efficient organization and automation, you can serve your customers better.
Business Registration Process
For any business set-up, the first step to take is registering your business with the Accounting and Corporate Regulatory Authority of Singapore. Though you have the option to be a sole proprietor or a partnership, the best business structure for a storage business would be a private limited company, given the risks involved. Meet the team of 3E Accounting, which is well-versed in the process of company registration in Singapore, for more know-how and guidance.
Selecting suitable premises for your storage business will be your next step. The place you select must be suitable for commercial purposes. Take care to ensure that you follow the mandatory building codes and fire safety measures.
Licenses and Permits
Obtain a permit from Urban Redevelopment Authority (URA) to convert your premises into a warehouse for goods storage. As per the URA regulations, you will have to allot 60% of the Gross Floor Area for warehousing purposes and keep the rest as office space and other facilities.
For further renovations, apply to the Building and Construction Authority (BCA) of Singapore for a building work permit. Only a licensed contractor or architect can perform such renovations. To occupy your premises, you will require a Temporary Occupation Permit or a Certificate of Statutory Completion from the BCA.
If you want an exemption from GST while storing goods at your warehouse, you will need to obtain a Warehouse Licence from Singapore Customs that permits you to store dutiable goods, like alcohol or tobacco. Another warehousing license that Singapore Customs issues permit you to keep a part of your warehouse or the entire premises as a zero-GST zone for GST-paid items and non-dutiable goods till they are taken for sale.
If you plan to store hazardous or flammable goods, apply for a Permit to Buy and Store Hazardous Substances. To certify your premises as a safe workplace, the Occupational Safety and Health Division at the Ministry of Manpower (MOM) must give its approval. A Fire Safety Certificate is also a must before occupying your premises.
Get a Crane Operator License from MOM if you will be lifting heavy goods. An (HDTP) Hazardous Material Transport Driver Permit is a must to transport goods like inflammable materials or toxic chemicals. You can obtain any additional information on licenses from 3E Accounting, an expert in company incorporation services.
Starting a storage business requires meticulous planning to avoid costly errors that can be a setback for your venture. That is the reason why you need the assistance of a Singapore corporate service provider to help you navigate all the legal formalities smoothly. We have the most experienced and skilled personnel team in Singapore, who have helped hundreds of investors set up and run their businesses profitably. If you are sure you want to start a storage solutions company, contact 3E Accounting soon to kickstart your business venture.