Register a shipping company in Singapore

On the one hand, the freight forwarder is the transport professional most often solicited by companies. His responsibility is to transport each good entrusted to him to the right place, in national or international delivery, within the given time and without damage.
A shipping company can be generalists and can take care of any type of goods, from the document under envelope to the container that will take a cargo ship or a plane.

On the other hand, the shipping company is specialized in coordinating with other shipping companies that have their own freight transport. They leverage relationships with multiple carriers by developing various offers to obtain not only the most economical route, but also the safest and most efficient one. This allows companies to save time and money in shipping their products.

The transportation of goods is a complex process that requires a good knowledge of international customs, an established relationship with several transportation companies and excellent communication skills in order to comply with the following process:

1. Export transport: This is the part where the cargo leaves the shipper and is moved to the freight forwarder’s warehouse, usually by container truck or train. This can take anywhere from a few hours to a few weeks.

2. Export Clearance: This is always a necessary step for any cargo before it leaves the country of origin. In Singapore, these checks are carried out by licensed customs brokers who submit details and supporting documentation on the nature of the cargo.

3. Handling: The cargo is received and loaded onto the vessel. A freight forwarder’s cargo receipt is issued after validation, comparing the supporting documents with the details of the existing booking.

4. Import clearance: The authorities of the destination country are required to verify the customs documents concerning the cargo.

5. Destination handling: This process involves receiving the necessary documents regarding the cargo details from the point of origin, and is handled by the forwarder present with the cargo.

6. Import transport: Upon arrival in the country of destination, the shipping company transports the cargo to the freight forwarder’s warehouse in the country of destination. The cargo is then transported to the destination point, either by the forwarding agency or by the consignee himself.

In conclusion, the freight forwarder is the person who takes care of the coordination and movement of goods. A shipping company can provide these services either directly or through one or more subcontractors.
These subcontractors are often common carriers who have the means to transport goods or people by land, air and sea, and offer their services to the public.

Once you have decided to establish a shipping company, you must incorporate your business. This is a legal requirement. Incorporation as a private limited company in Singapore is the most common form of incorporation. We can however point out that some legal requirements apply.

Firstly, you have to do a company registration in Singapore. It’s the first step in setting up a business.

All aspects of your business, from the name of your shipping company to the details of the board of directors, must be registered with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore and approved before you can start your business operations or begin hiring employees.

In order to be validated by ACRA, the shipping company must meet certain requirements. Firstly, the principal person behind the shipping company must register. This person must be at least 18 years of age and legally entitled to hold a position as a director.
Secondly, at least one director must reside in Singapore. The corporate secretary must also be a Singapore resident.

On the other hand, in order to register a company, it is necessary to pay up capital. The share capital is a sum of money contributed by the partners or shareholders in a company in exchange for corporate rights at the time of its creation. The legislation may require minimum amounts for the share capital. These amounts vary according to the corporate form of the shipping company. For limited liability companies, the capital must be at least SGD 1.

Finally, in order to proceed with registration, an office address is required. Thus, you must ensure that you register a proper address for your shipping company, i.e. find a business location. For a limited liability company, a physical office address is required.

You must apply for the appropriate licenses and permits based on your business activities. The basic licenses/permits for shipping company are as follows:

It is mandatory to obtain a Port Craft License, issued by the Maritime and Port Authority of Singapore, to operate vessels used for commercial purposes in the Port of Singapore. Port boat licenses are classified according to the type of vessel and its intended use. The different categories of licenses include barges, tugs, bumboats, tankers, ferries, cruise ships, etc.

It is therefore necessary to outline the procedures and the various documents to be provided for your shipping company, which we will detail below.

1. Apply and submit the necessary documents:

First of all, you must submit a duly completed Port Boat License Application Form to the Maritime and Port Authority of Singapore. Supporting documents accompany this application form. You will need to submit originals and copies of the following documents:

You must submit two copies of the completed, signed and stamped Authorization to Launch a Newly Built Vessel in Port Waters form to the MPA’s One-Stop Documentation Center within three working days prior to launching the vessel but also:

Once all of the above documents are ready, you must submit them Monday through Friday, 8:30 a.m. to 5:30 p.m., to the MPA One-Stop Documentation Center.

2. Arrange for vessel inspection:

In order to obtain a port boat permit, each vessel must pass an inspection. You must arrange with the MPA One-Stop Document Center for the location, date and time of the in-person inspection at least one week in advance. Payment of the inspection fee is not required at this time.

3. Make Payment and Receive Permit:

Once the boat has passed the inspection, you will receive a boat inspection report. Within seven days, you will be required to make payment of all necessary fees and assessments. Details of the fees and assessments to be paid can be found here. Once all fees and assessments have been paid, you will receive a boat license certificate indicating the boat license number. You must display the boat license in a conspicuous place on board at all times. In addition, the permit number must be legible and visible on the vessel at all times.

Port boat permits are issued only for the use of the vessel within the limits of the Port of Singapore. If you wish to take your vessel outside the port limits, you must first obtain a Port Clearance Certificate from the Maritime and Port Authority.

It is necessary to distinguish between the authorization for ships departing Singapore and the authorization for ships arriving in Singapore.

1. Port clearance for ships departing Singapore:

First of all, the port clearance procedure requires that you make a declaration before your vessel leaves Singapore. To do this, you must submit a general declaration form to the One Stop Document Center.

Then, the MPA will arrange for an inspection. Once all requirements are met and the port fees have been paid, the MPA will issue the Port Clearance Certificate.

It is important to note that your vessel must leave Singapore within 48 hours of receiving the Port Clearance Certificate.

2. Port clearance for ships arriving in Singapore:

If your vessel arrives in Singapore, you must ensure that you make a declaration within 24 hours of the vessel’s arrival in Singapore.

You must then submit to the One Stop Document Center at the MPA a General Declaration Form along with the necessary supporting documents, namely:

Upon receipt of the form and documents, the MPA will assign a vessel general declaration number (GDV number) and stamp all copies of the general declaration. The MPA will retain the original copy of the General Declaration for the vessel’s arrival.

It may be useful to note that port clearance formalities can also be completed online using the Electronic Port Clearance (EPC) system.

It is mandatory that each crew member on board your port vessel hold a valid crew license.

You must submit to the MPA One-Stop Documentation Center a completed Port Crew License Application Form for each crew member, along with supporting documentation for each crew member, such as:

The license fee for 5 years is 10 SGD.
After receiving the form, the MPA will issue the necessary document.

The registration of vessels must be done with the Singapore Registry of Ships. Indeed, it is mandatory to register all vessels. Vessels can be registered under a “foreign flag” (foreign vessels) or under the “Singapore flag” (local vessels). This will allow you to obtain the ship’s certificate of registration, proving that the registration has been done.

First of all, there are some prerequisites to be able to register with the SRS. Indeed, only the following persons can be registered as ship owners in Singapore:

1. Singapore citizens or permanent residents of Singapore.

2. Companies incorporated in Singapore, whether foreign (more than 50% of their capital is held by foreigners) or local (more than 50% of their capital is held by Singapore citizens or another local company).

In addition, if the vessel is owned by a foreign company, it can only be registered in Singapore if the shipping company has a minimum paid-up capital of SGD 50,000.

Sometimes exemptions from the minimum paid-up capital are granted on a case-by-case basis, subject to certain conditions and at the discretion of the Registrar of Ships.

Once you have met all the prerequisites, you must apply to the Registrar of Ships for approval of your vessel’s name and for an official vessel number.

Finally, you must submit the application form and supporting documents. You may choose to apply for provisional registration, valid for up to one year, or permanent registration.

You will need to submit the following application forms along with the relevant supporting documents:

In addition to this, the supporting documents:

After submitting the documents, you must proceed to pay the initial registration fee and the annual tonnage fee.

Finally, it is advisable to obtain a Ship Sanitation Certificate issued by the Port Health Office of the National Environment Agency (NEA), to certify that your vessel is in a safe condition to carry goods.
Applications can be made online by filling out an application form and paying a license fee of SGD 170 or SGD 230 depending on the gross tonnage of your vessel.
Upon receipt of your application and payment, the NEA will take approximately one business day to process your application and issue the license.

If your arriving vessel is carrying dangerous goods, petroleum or explosives, or if you intend to unload or load such materials in the port, it is imperative that you give prior notice of arrival of such vessels and obtain permission from the port master to load or unload such materials.

Notification of arrival and request for unloading/transit must be made at least 12 hours prior to the vessel’s arrival or loading/unloading activity by submitting a completed notification form to the Hazardous Cargo Section of the GPA.