Singapore Shipping Company Registration
- Roger Pay
- 23 hours ago
- 9 min read
Singapore Shipping Company Registration Guide
Registering a company in Singapore for a shipping or container line business involves a multi-step process that includes incorporating the company and then obtaining the necessary licenses and permits for your specific maritime activities. Here is a breakdown of the key requirements and steps:
1. Company Registration with ACRA
The first and most fundamental step is to register your business with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. This is a legal prerequisite for any business operation in the country.
Business Structure: Most companies choose to register as a Private Company Limited by Shares (Pte Ltd).
Company Name: You must apply to reserve your company name with ACRA via the BizFile+ portal. The name application is subject to approval, and once approved, it is reserved for 120 days.
Key Personnel:
You need at least one resident director who is a Singapore citizen, a Singapore Permanent Resident, or an Employment Pass/EntrePass/Dependent's Pass holder with a Letter of Consent (LOC).
You need at least one shareholder (can be the same person as the director).
You must appoint a company secretary within six months of incorporation. The secretary must be a resident of Singapore.
Registered Address: A physical office address in Singapore is required.
Share Capital: The minimum paid-up capital for a limited liability company is S$1. However, for a shipping company, especially if it is a foreign-owned company registering a vessel under the Singapore flag, there are specific capital requirements (see below).
Business Activity (SSIC Code): You will need to select the appropriate Singapore Standard Industrial Classification (SSIC) code that corresponds to your business activities.
Submission: You can submit the company registration application through the BizFile+ portal. Many foreign individuals or companies choose to engage a corporate service provider to handle this process on their behalf.
2. Registering a Vessel and Obtaining Licenses
After your company is incorporated, you will need to register your vessels and obtain specific licenses from the Maritime and Port Authority of Singapore (MPA).
Singapore Registry of Ships (SRS): To register a ship under the Singapore flag, it must satisfy certain prerequisites.
Ownership: The owner must be a Singapore citizen, a permanent resident, or a company incorporated in Singapore.
Minimum Paid-Up Capital: A foreign-owned Singapore-incorporated company must have a minimum paid-up capital of S$50,000 to register a vessel.
Vessel Requirements: Generally, ships under 17 years old are considered for registration. They must also comply with relevant IMO Conventions like SOLAS and MARPOL.
Vessel Manager: For every Singapore vessel, you must appoint a manager residing in Singapore.
Maritime Licenses and Permits: The specific licenses required will depend on your business activities. Here are some common ones:
Harbour Craft Licence: Required to operate vessels for commercial purposes within the Port of Singapore. The vessel must pass a compulsory inspection of its hull and equipment.
Port Clearance Certificate: Needed for vessels sailing beyond Singapore's port limits.
Port Limit Manning Licence: Required for your crew members to work on board.
Ship Station Licence: Necessary for installing and operating radio-communication equipment on a Singapore-registered ship. This is issued by the Infocomm Media Development Authority (IMDA).
Permit for Dangerous Goods: Required for vessels carrying hazardous materials.
3. Other Important Considerations
Customs Account: If your business involves importing or exporting goods, you must register with Singapore Customs and activate a Customs Account. This is necessary to apply for customs permits via the TradeNet system.
Goods and Services Tax (GST): You may need to register for GST with the Inland Revenue Authority of Singapore (IRAS) if your taxable turnover exceeds S$1 million.
Incentives and Schemes: Singapore offers various government incentives and tax schemes to support the maritime industry, such as the Approved International Shipping Enterprise (AIS) Award and the Maritime Leasing (MSI-ML) Award, which provide tax concessions.
The process of setting up a shipping company is complex and requires careful adherence to the regulations of both ACRA and the MPA. It is highly recommended to consult with a corporate service provider or legal professional who specializes in business setup and maritime law in Singapore.
Fees
The total fees for registering a shipping or container line company in Singapore are not a single, fixed amount. They are a combination of several different government fees and potential professional service fees. Here is a breakdown of the typical costs you can expect to incur:
1. Company Registration (ACRA)
These are the mandatory government fees paid to the Accounting and Corporate Regulatory Authority (ACRA) for incorporating a Private Limited Company.
Company Name Application Fee: S$15
Company Incorporation Fee: S$300
Total Direct ACRA Fees: S$315
While the minimum paid-up capital for a company is S$1, for a foreign−owned Singapore−incorporated company, the Maritime and Port Authority of Singapore (MPA) requires a minimum paid−up capital of∗∗S$50,000** to register a vessel. For a local company owning a tug or barge, the minimum paid-up capital is S$10,000.
2. Vessel Registration (MPA)
These fees are paid to the Maritime and Port Authority of Singapore (MPA) for registering a ship under the Singapore flag. The fees are based on the vessel's Net Tonnage (NT).
Initial Registration Fee: S$2.50 per NT, with a minimum of S$1,250 and a maximum of S$50,000.
Annual Tonnage Tax: S$0.20 per NT, with a minimum of S$100 and a maximum of S$10,000.
Block Transfer Scheme (BTS): If you register multiple vessels at once and meet certain criteria, you may qualify for a significant discount. The fee under this scheme is S$0.50 per NT, with a minimum of S$1,250 and a maximum of S$20,000.
Other Potential Vessel-Related Fees:
Approval of change of name: S$26
Replacement for Certificate of Registry: S$30
Registration of mortgage: S$48 plus S$1 per 100 Gross Tonnage (GT)
Civil Liability Convention (CLC92) Certificate: New/renewal: S$45, Replacement: S$24
Bunker Convention Certificate: New/renewal: S$60, Replacement: S$30
3. Other Licensing and Compliance Fees
Depending on your specific operations, you will need to apply for additional licenses and pay associated fees.
Harbour Craft Licence: This is required for commercial operations within the Port of Singapore. The fees vary depending on the vessel type and size.
Port Limit Manning Licence: Fees for crew members to work on vessels within port limits.
Ship Station Licence: To operate radio equipment on your vessel, a license is required from the Infocomm Media Development Authority (IMDA).
Customs Account and Permits: If you are importing or exporting goods, there are fees for customs permits and other documentation, typically a few dollars per application through the TradeNet system.
Bestar Professional Service Fees
When establishing a shipping or container line company in Singapore, a significant portion of the initial and ongoing costs will be professional service fees. These fees are paid to Bestar for our expertise and for fulfilling the necessary legal and regulatory requirements.
Here is a breakdown of the professional service fees you can expect:
Company Incorporation Package
Bestar offers all-inclusive packages to assist with the company incorporation process. These packages are popular with foreign individuals and companies as they simplify a complex process.
Cost Range: S$500 to S$1,500.
What's Included:
Payment of the mandatory ACRA government fees (S$315).
Appointment of a qualified company secretary for the first year, which is a legal requirement.
Preparation and filing of all necessary documents with ACRA.
Advice on company structure and compliance.
Provision of a registered office address in Singapore for one year
Here is a breakdown of the costs and what the service entails:
Cost Range
The annual fee for a registered office address is between S$110 to S$500 per year, depending on the package you choose.
What the Service Includes
A registered office address is more than just a mailing address. According to the Accounting and Corporate Regulatory Authority (ACRA), every Singapore-incorporated company is required to have a valid physical address in Singapore where all official correspondence and legal notices can be sent. The address cannot be a P.O. Box.
Bestar will provide:
A physical address: This can be a commercial building in a business district, which provides a professional and credible image for your company.
Mail handling: Bestar will receive official mail from government agencies (like ACRA and IRAS) on your behalf.
Mail notification: You will be notified when important mail arrives.
Mail forwarding or scanning: Depending on the package, Bestar may forward the physical mail to your designated address or scan and email you the contents.
Why It's a Popular Option
For foreign businesses, a registered office address provided by a professional service firm is a highly cost-effective and convenient solution compared to renting a physical office space. It allows you to meet the legal requirements for company incorporation without the significant overhead costs of rent, utilities, and a physical office setup.
Nominee Director Fees
For foreigners who are not able to be a resident director (i.e., a Singapore Citizen, Permanent Resident, or an Employment Pass/EntrePass/Dependent's Pass holder with an LOC), a nominee director must be appointed. This is a mandatory and recurring cost.
Annual Fee: This ranges from S$1,800 to S$5,000 per year.
Security Deposit: Bestar requires a refundable security deposit, between S$1,000 and S$2,000, to mitigate any potential liabilities.
Accounting and Tax Services
Once your company is incorporated, you have ongoing compliance obligations with ACRA and the Inland Revenue Authority of Singapore (IRAS). These services are often outsourced to Bestar.
Bookkeeping: Fees depend on the volume of transactions and the complexity of your business.
Low Volume: S$90 to S$300 per month or S$600 to S$1,200 per year.
High Volume/Complex Operations: S$300 to S$2,000+ per month.
Tax Preparation and Filing:
Simple Operations: S$400 to S$800 per year.
Complex Operations: S$800 to S$2,500 or more per year.
Annual Filing: Fees for a company secretary to manage the Annual General Meeting (AGM) and file annual returns with ACRA range from S$280 to S$900 per year.
Professional and Advisory Services
For a specialized business like a shipping or container line, you may require professional expertise beyond basic corporate compliance.
Maritime Law Advisory: Bestar charges based on an hourly rate, which can vary widely depending on the firm's reputation and the lawyer's experience. These services may include advising on vessel registration with the Maritime and Port Authority of Singapore (MPA), drafting contracts (e.g., charter agreements, bills of lading), and handling litigation or arbitration.
Vessel Registration Assistance: Bestar can help with the complex process of registering a vessel with the Singapore Registry of Ships (SRS) and obtaining the necessary permits. Fees for this service can range from S$400 to S$1,500 per application, not including the government fees.
Permit and License Applications: Assistance with securing specific licenses from the MPA and other regulatory bodies, such as a Harbour Craft License or a Ship Station License, will also incur a fee.
How Bestar can Help
Singapore Shipping Company Registration
Engaging a professional corporate service provider is highly recommended, especially for foreign individuals and businesses looking to register a company in Singapore. The Singapore government requires foreign individuals to use a registered service provider to complete the company incorporation process. These firms offer a wide range of services that go beyond simple registration, helping you navigate the entire business lifecycle.
Here is a detailed breakdown of how Bestar can assist you:
1. Streamlining the Incorporation Process
The registration process with the Accounting and Corporate Regulatory Authority (ACRA) can be complex for someone unfamiliar with Singapore's legal framework. Bestar simplifies this by:
Handling all paperwork: We prepare and submit all necessary documents, such as the company's constitution, via ACRA's online BizFile+ portal.
Ensuring compliance: We ensure your proposed company name and business activities comply with ACRA's guidelines, reducing the risk of rejection and delays.
Providing essential services: As part of our incorporation packages, we provide the mandatory services required for registration, including a resident director and a registered office address. This is crucial for foreigners who do not have a local presence.
2. Ensuring Ongoing Statutory Compliance
Once your company is incorporated, there are numerous ongoing legal and administrative obligations that must be fulfilled to avoid penalties. Bestar ensures your company remains compliant by:
Acting as the company secretary: Every Singapore company is legally required to appoint a company secretary. Bestar will provide a qualified individual to fulfill this role.
Managing annual filings: We handle the preparation and filing of Annual Returns (AR) and financial statements with ACRA, and assist with the necessary Annual General Meeting (AGM) documents.
Maintaining statutory registers: We are responsible for keeping all your company's official records, such as the register of directors, shareholders, and share transfers, up-to-date.
Advising on corporate changes: We provide advice and handle the necessary filings for any changes in the company, such as a change of address, the appointment or resignation of a director, or changes in share capital.
3. Financial and Tax Management
Beyond corporate compliance, Bestar offers comprehensive accounting and tax services to ensure your financial operations are in order. We can help with:
Bookkeeping: Managing your company's day-to-day financial records, including invoices, expenses, and bank reconciliations.
Corporate tax filing: Preparing and filing your company's tax returns with the Inland Revenue Authority of Singapore (IRAS) and providing advice on tax incentives.
Goods and Services Tax (GST) registration: If your company's turnover exceeds S$1 million, we can assist with GST registration and the preparation of quarterly GST returns.
4. Specialized Maritime and Professional Advice
For a business as specialized as a shipping or container line, Bestar with a strong network can be invaluable. We can offer:
Expert guidance on licensing: We can advise and assist with applying for the specific licenses required from the Maritime and Port Authority of Singapore (MPA), such as a Harbour Craft Licence.
Vessel registration assistance: We can guide you through the process of registering a vessel under the Singapore flag, ensuring you meet all the ownership, capital, and vessel requirements.
Professional and advisory support: While Bestar has in-house professional expertise, we can connect you with specialized maritime lawyers to help with complex issues like international trade regulations, contracts, and dispute resolution.
In essence, Bestar acts as a one-stop-shop, managing all the administrative and compliance tasks so that you, as the business owner, can focus on your core operations and business growth. We save you time, minimize the risk of costly errors, and ensure you remain compliant with Singapore's robust legal framework.
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