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Beginner’s Guide on Starting an Aerospace Business in Singapore
Dubbed the ‘Aerospace City of the Future’, Singapore has proven its potential as the forerunner of the aviation industry in Asia from time to time. With an impressive annual compound rate, the Ministry of Trade and Industry plans to invest and expand the said industry. Currently, Singapore has more than 22 thousand aerospace and satellite professionals – and this could be you!
Needless to say, having a career in aerospace is an exciting one; if you are ready to take it to the next level by starting an aerospace business in Singapore, you’re at the right place. Regardless if you’re an expert in aerospace or a student wondering about aerospace and how far it can take you in the future, this article will be helpful for you. We’ll be exploring all about what an aerospace business is, how you can break into it and what requirements you will need. Plus, we’ll spill the secret on where you can find quality help to navigate this industry too. Let’s take a look below!
What Is an Aerospace Business?
Aerospace businesses are companies that manufacture, repair, design, test, and sell aircraft. Essentially, these companies offer various types of aircraft services to the aviation industry and aircraft owners. Some of these services include ensuring the aircraft product is up to standards, studying aircraft crashes, evaluating designs, and much more. The aerospace industry is considered a complex and high technology venture. Therefore, professionals such as engineers, physicists, mathematicians, pilots, technicians, etc., work alongside each other around aircraft.
Although Singapore’s aerospace scene may not be as big as other countries in Asia, the Lion City is slowly making its strides. In 2006, the Singaporean government allocated S$60 million, spanning over 140 acres of land, to launch the Seletar Aerospace Park (SAP). The industrial park was established after realizing the growing demand for aviation needs in the country.
Plus, the Singaporean government budgeted a total of S$4.5 billion to develop the Industry Transformation Map (ITM) to grow and drive several industries for the country. Subsequently, ITM launched the Aviation Development Fund, which included a program specialized in the transportation sector. Given how the aviation business is categorized under transportation, aerospace business owners will be incentivized with benefits from the S$500 million.
That said, there is no better time for starting an aerospace business in Singapore. Engaging with company incorporation services can help you to navigate through this niche business neatly.
Breaking Into the Aerospace Business
Like any other business in Singapore, the first step is to register your company with the Accounting and Corporate Regulatory Authority (ACRA). ACRA is the national body that monitors business entities and corporate service providers. The registration process can be conducted online, in more or less an hour, with the exception of rare cases, which may take up to several weeks.
You will need to obtain several licenses with the Civil Aviation Authority of Singapore (CAAS) as well. As the official statutory body for aviation, CAAS requires you to apply for the proper licenses according to your company’s services. If it’s your first time applying for permits and you’re worried if you might overlook specific requirements, you can utilize the services of a corporate service provider in Singapore to help you sort out the license application work.
You Might Need Some of These Licences and Permits
To legally offer Maintenance, Repair, and Overhaul (MRO) services to registered aircraft in Singapore, your company must possess the Singapore Airworthiness Requirements Part 145 (SAR-145) – Maintenance Organisation Approval. This approval enables your company to modify, repair, replace, inspect and detect rectification of the aircraft. The SAR-145 allows your company to offer services to foreign aircraft.
However, you need an international maintenance agreement with DGCA and the respective aircraft state’s authority. If you wish to obtain the SAR-145, you will need to produce a Singapore Air Operator or SAR-145 Approved Maintenance Organisation letter. The letter will serve as evidence that the services of your company are legit and necessary. Want to read more on the SAR-145? Click here.
Depending on what services you want your aerospace business to offer, you may need to apply for additional licenses. For example, suppose you wish to fly your aircraft and provide transportation services. In that case, you will be required to demonstrate that your aircraft meets the airworthiness standards to the authorities to get approvals. Read the fine print of Singapore Airworthiness Requirements (SAR) Part 21 here.
Do keep in mind that this is not an exhaustive list of licenses that you might need. You can check out the legislation, regulations, and guidelines of CAAS. Apart from that, you can find relevant e-Forms on CAAS’ official website as well. At first glance, company registration in Singapore might seem hard. But if you have the right help for it, starting an aerospace business in Singapore can be done in a jiffy!
How We Can Help You
Undoubtedly, aerospace businesses are a niche. If you are stunned on where to begin or what to do, you can always engage with professionals like us. Understandably taking a step towards starting an aerospace business in Singapore is anything but a simple task. The aerospace engineering industry is a highly competitive one. Therefore, you need to carefully plan your steps before diving headfirst into the industry. And 3E Accounting can help you with just that.
Our renowned firm has spanned over a decade in helping clients to start their businesses all across the world. We have the experience and the expertise in setting up managing, and assisting clients in running businesses swiftly. Not only that, but we also offer professional advice based on research and analysis to help you be the best in your industry. 3E Accounting prides itself on providing the very best one-stop business solutions and fast, responsive services every time. No matter what stage your business is in, we’ll help to make it better. Want to know more about what we can do for you and your aerospace business? Contact 3E Accounting and find out today!