How to Setup a Maritime & Shipping Company in Singapore?

Incorporate your company

It is very easy to incorporate a company in Singapore and can be done within the day if all the necessary documents are in place. This is a statutory requirement.

Look for suitable premises

The next step is to look for rental options in Singapore. There are plenty of options here, so it is important to find one that is cost-efficient and suits your business needs.Various rental options are available in Singapore, allowing you to cater to your specific needs.

Hire employees

Employees are the cornerstone of your business operations – they are the ones who will be working onboard your vessel or office to ensure things are running well. You will need to apply for a valid Port Limit Manning License for those who are working onboard the vessel. If you are looking to hire foreign staff in Singapore, you will have to also apply for a work permit, such as the Employment Pass.

Apply for licenses and permits

Before you can officially start operating your company, there are certain business licenses and permits to apply. The following is a non-exhaustive list of licenses and permits:

• Harbour Craft Licence: To operate vessels within Singapore’s port
• Port Clearance Certificate: To operate vessels beyond Singapore’s port
• Ship Registration Certificate: To transport passengers or goods
• Port Limit Manning Licence: For crew members to work on-board your ships and vessels
• Launch a New Vessel Permit: To launch a new vessel more than 15 meters long in the port
• Ship Station Licence: To operate radio-communication equipment on your Singapore-registered ship
• Ship Sanitation Control Certificate: To certify your vessel’s sanitary condition to transport goods
• Permit to discharge/load/transit dangerous goods and dock vessels carrying such goods
• Other Licences and Permits for related activities

Habour Craft License

Issued by the MPA, this license is required if you intend to operate vessels for commercial purposes within Singapore’s port. There are several categories of the Habour Craft Licenses, such as tankers, ferries, barges, etc.

Port Clearance Certificate

If you intend for your vessel to depart from port limits, a Port Clearance Certificate will be needed from the MPA. You will also need to apply for this certification 24 hours upon arrival of your vessel in Singapore.

Port Limit Manning License

Every crew member onboard your vessel must hold a valid Port Limited Manning License. There are several different categories of Manning Licenses for the different types of crew members. This license is valid for 5 years.

Ship Registration Certificate

If your business involves the use of ships, it is mandatory for you to register them with the Singapore Registry of Ships. There are a few pre-requisites to satisfy before registering these ships. This will be discussed in detail in the next section.

Launch a New Vessel Permit

For businesses who intend to launch a new vessel that is more than 15m in length, a permit will be required.

Dangerous Goods Permit

Vessels arriving in Singapore transporting dangerous goods, petroleum, or explosives need to apply for a permission granted by the Port Master. This also applies if you intend to discharge these goods in the port.

Ship Sanitation Control Certificate

While this is not mandatory, it is recommended to apply for the Ship Sanitation Control Certificate from the National Environment Agency to ensure that your craft is in a safe and sanitary condition for transporting goods, giving employees and partners confidence in your company.

Ship Station License

If you intend to operate any radio-communication equipment onboard your Singapore-registered ship, this license is required and can be obtained from the InfoComm Media Development Authority of Singapore.

The carriage of Goods by Sea Act

The Merchant Shipping Act

The High Court (admiralty Jurisdiction) Act

The Bills of Lading Act

Citizens of Singapore or permanent residents of Singapore

Foreign or locally owned companies incorporated in Singapore

• A foreign owned company is defined as one that is operated in Singapore and has above 50% of its equity owned by Singapore citizens
• A locally owned company is defined as a company incorporated in Singapore and has up to 50% of its equity owned by another locally owned company or Singapore citizens

The company must have a paid-up capital of at least $50,000

The vessel must be self-propelled and a minimum of 1600 GT

Notwithstanding the minimum paid-up capital requirements, the Registrar may in his discretion, waive them provided that the company and/or its related corporation(s) have registered, applied to register, or have informed the Registrar that they will apply to register.

An exemption from the tonnage requirements might also be provided at the registrar’s discretion on a case specific basis, in the case that the vessel is operated or based in Singapore. However, owners must apply for exemption with the registrar.

If the parent company is based in Singapore, is locally owned, and satisfies the minimum, paid-up capital requirement, the vessel may be registered in Singapore.

For tug and barge owning local companies, the paid-up capital will be pegged to 10% of the total value of the first tug or barge, or $50,000, which is the lesser, subject to a minimum of $10,000.

MSI Approved International Shipping Enterprise Award
This incentive aims to encourage international ship owners and operators to start their shipping operations in Singapore.

Benefits
Tax exemption on qualifying shipping income for either:

• a 10-year renewable period; or
• a 5-year non-renewable period, with the option of graduating to the 10-year renewable award at the end of the 5-year period

MSI Maritime Leasing Award
This incentive is to encourage businesses to use Singapore as their capital and funding base to finance their vessels and sea containers.

Benefits

• Tax concession for up to 5 years on their qualifying leasing income for ship/ container leasing companies, business trusts or partnerships
• Concessionary tax rate of 10% on its qualifying income for an approved manager of the asset-owning company
• Full coverage for operating and qualifying finance leases

MSI Shipping-related Support Services Award
This incentive aims to promote the growth of ancillary shipping services providers and encourage shipping conglomerates to set up their corporate services function in Singapore.

Benefits
Concessionary tax rate of 10% on the incremental income derived from the provision of the following approved shipping-related support services for a 5-year renewable period:

• Ship broking
• Forward freight agreement trading
• Ship management
• Ship agency
• Freight forward and logistics services
• Corporate services (for business of shipping-related activities)

Withholding Tax (WHT) Exemption

This incentive promotes the growth of the maritime sector. Qualified shipping companies will enjoy WHT exemption on interest and related payments made in respect to the arrangements obtained to finance the purchase or construction of vessels, or the purchase of containers and intermodal equipment.