How to Start an Import and Export Business in Singapore

Singapore has cemented its reputation as a major trading hub in South East Asia, being the 16th largest importer of goods globally and 24th largest exporter of goods in 2023, according to the Observatory of Economic Complexity¹. As of July 2025, Singapore’s imports totalled SGD$48.8M and exports totalled SGD$64M over the past year².

If you’re planning to start an import and export business, Singapore is one of the best countries to do so. This article will give you the fundamentals you need to set up your import and export business in Singapore smoothly.

We will also share how Wise Business enables you to pay overseas suppliers and receive payments from customers across the world at a faster speed, yet with more affordable fees.

Table of contents
Why start an import/export business in Singapore? Key steps to set up a company for import and export in Singapore Regulations and compliance Cost of import and export permits, taxes, and other payments Other financial and logistical considerations FAQs for import and export companies in Singapore

Why start an import/export business in Singapore?

Singapore offers many advantages for import and export businesses, which include:

Strategic geographical location

Despite being a small island, Singapore’s strategic location within the core of Southeast Asia makes it a convenient and necessary stop for many trade routes. This allows import and export businesses in Singapore to gain access to major markets such as China, India, and fellow ASEAN countries.

Low barrier to entry

It is relatively easy to set up an import and export business in Singapore, and the process has been made more efficient lately with the use of technology. Aspiring business owners can register their business online and get started fairly quickly.

Favourable tax system and agreements

Singapore’s corporate tax system is fairly easy to understand, relying on a single-tier system set at 17%³. If you intend to start small as a sole proprietor, individual income tax rates are tiered by income brackets and capped at 24%⁴. The government offers a range of tax relief as well.

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Key steps to set up a company for import and export in Singapore

Step 1: Register your company

The first step to starting your import and export business in Singapore is to incorporate your company via ACRA. While individuals can apply for import and export permits using their SingPass, having a Unique Entity Number (UEN) can ease the process.

You can read our step-by-step guide on how to register your company in Singapore for full details. As a quick summary, here are the required documents you should have on hand before you register your company:

• Business name
• Intended primary and secondary business activity and description
• Registered address
• Names, ID, and supporting documents for every director and shareholder involved

The company incorporation process is fairly straightforward and can be done in a few steps:

1. Choose and register the business name via BizFile.
2. Register the business via ACRA.
3. Pay the registration fee.
4. Wait for approval and receipt of your business profile and the newly minted company’s UEN.

Step 2: Create a Singapore customs account

Once you have a UEN, you can head to TradeNet, Singapore's trade declaration portal, to apply for your Singapore Customs account. If you plan to apply for your trade permits in-house, you will also need to apply for a Declaring Agent account.

Simply follow the instructions provided during the online application process. Your application should be processed within the day if you have submitted the requested documents accordingly.

Once your Singapore Customs account is set up, you can go ahead to apply for the necessary permits.

Step 3: Understand goods classification

Failure to produce the appropriate trade permits could result in a fine or persecution. Hence, you should ensure that you have the right import or export permits required to send or receive goods for your business.

In Singapore, goods are classified into three general categories:

• Non-controlled or unprohibited goods that do not require a permit.
• Controlled goods that require a permit for trade.⁵
• Strategic goods that require a Strategic Goods Permit, which is subject to greater scrutiny⁶. These usually include firearms and goods that could be used for military purposes.

To check if you are trading controlled goods, you can simply use the HS/CA Product Code Search Engine. Provide a detailed description of your product and match the closest category for your product. You will find the necessary licence required, the relevant Competent Authorities (CA) responsible for your product type, HS codes, and more.

Step 4: Apply for necessary licenses and permits

With the information you’ve gathered in the previous step, you can start applying for the required licenses and permits.

Here’s a quick guide to applying for import and export permits in Singapore:

1. Log in to your TradeNet account.
2. Submit an Import or Export permit application.
3. Make payment for the permit.
4. Download the permit for the clearance of your goods.

For full details, read our complete guide to import and export licenses in Singapore.

Step 5: Prepare required documents for customs clearance

On top of producing the relevant import or export permit, you will also be required to have the following documents on hand to ensure that your goods can be cleared at the Singapore Customs smoothly:

• Packing list
• Commercial Invoice
• Bill of Lading (BL) or Air WayBill (AWB)
• Any other documents as specified by Singapore Customs

Step 6: Set up an Inter-Bank GIRO with Singapore Customs (optional)

You will be required to pay Goods and Services Tax (GST) and or Customs Duty during the permit application process. While payment can be made by PayNow, import and export businesses with the need to apply for numerous permits may find it easier to process these payments by setting up an Inter-Bank GIRO (IBG) with Singapore Customs. To do so, you’ll need to mail a completed application form to Singapore Customs’ address physically.

➡️ If you are not sure where to start, check out our review of the best corporate bank accounts in Singapore.

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Regulations and compliance

Ensuring a smooth transition and trading process is crucial for the success of any import and export business. To avoid any delays, you should always ensure that you understand and abide by the regulations.

Regulations for goods transiting through Singapore

While goods being transhipped through Singapore are not subject to GST or duty, you may be required to obtain a Customs transhipment permit. You would require a transhipment agent to apply for the permit.

Refer to Singapore Customs if you are unsure whether you require a transhipment permit⁷. In general, the following movements would require one:

• Goods being transhipped between Free Trade Zones (FTZ)
• Goods being transhipped from an FTZ to a land checkpoint or vice versa
• Transhipment of controlled goods

Regulations for goods not transiting through Singapore

Goods not transiting through Singapore would not need to be declared within the country. You should understand the regulations where your goods will be transiting, and ensure that you remain compliant with local laws.

Cost of import and export permits, taxes, and other payments

As with any business, it is important to understand your necessary costs. You will be required to pay for the following during the application for your import and export permits:

• Permit application via TradeNet
• Certificate of Origin application (for import permits)
• Statutory fees
• Professing and messaging fees

One of the most frequent financial activities for an import-export company is making payments to overseas suppliers.

While traditional corporate bank accounts might be top of mind for local operations, they can come with high fees and slow processing times for international transfers. This is where modern business account solutions, like Wise Business, can provide a significant advantage.

💡Whether you're handling one-off invoices, recurring payments, or mass payouts, Wise Business makes it easy to simplify your financial operations and maximise profits.

• Fast and secure payments to 140+ countries with no exchange rate markups.
• Always get the mid-market rate with transparent conversion fees starting from 0.26%.
• Send up to 1,000 payments with just one transfer using Batch Payments.
• Enjoy lower fees when sending amounts above 20,000 GBP (or equivalent in your currency).

➡️Start Paying Overseas Invoices for Less with Wise Business

GST and Duty

You will be required to pay GST and Duty on imported goods that are brought in for domestic consumption.

At the point of writing, the ongoing GST rate is 9% of the cost, insurance, and freight (CIF) value of your goods. Import duty is imposed only on specific types of goods, and the rates vary based on the type of goods.

GST-registered companies in Singapore can claim the GST incurred on their purchases. Read our guide to learn how you can register your company for GST in Singapore.

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Other financial and logistical considerations

While it is easy to register an import and export business in Singapore, business operations may be costly. To ensure your success, you should consider the following.

Financial planning

To ensure the success of your import and export business, you should:

• Understand your costs and expenses
• Project your potential revenue
• Have sufficient cash flow and capital on hand
• Seek professional financial advice for additional help

Business loans

Business loans could be useful if you require a large capital to kickstart your import and export business. Various financing options from corporate corporate banks are available to help entrepreneurs and business owners secure the funds needed for their ventures.

Letters of Credit (LC) and Trade Credit Insurance (TCIS)

As an import and export business, you should also be familiar with these documents.

A Letter of Credit (LC) is a guarantee from the buyer’s bank to the exporter that payment will be made once contract terms are fulfilled.

The Trade Credit Insurance (TCI) is an insurance that protects an import-export business against nonpayment from buyers. Under the TCI Scheme (TCIS), eligible businesses can receive support of up to 50% of the minimum insurance premiums for TCI policies provided by Singapore-registered insurers, for a maximum lifetime support of SGD$100,000 per company¹¹.

Storage and warehousing options

The number one headache of import and export business in Singapore is storage space. Here are some options you can consider:

• Licensed warehouses

Suitable for the storage of suitable goods, licensed warehouses are approved by Singapore Customs and would give you peace of mind.

• Zero-GST warehouses

Suitable for non-duitable goods, Zero-GST warehouses allow you to store goods without paying GST until the goods are retrieved for local consumption. Transhipping permit application and fees apply for goods that are being transited in Singapore.

• Free Trade Zone warehouses

Suitable for goods used for international trade. Duty-free warehouses allow you to house goods that are being stored, handled, and re-exported within Free Trade Zones¹². You should take note that liquors, cigarettes and all goods arriving via rail and road cannot be deposited into such warehouses¹³.

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FAQs for import and export companies in Singapore

Do I need an import license in Singapore?

You will need an import license if you are importing controlled goods or strategic goods into Singapore. Refer to our guide on import and export licenses in Singapore for more details.

What is the minimum investment to start an import-export business?

This depends highly on the cost of goods you plan to import and export. In Singapore, you can register for a private limited company for about SGD$315 and start your business almost immediately. However, you should take into account the cost of goods, cost of permits, storage options, transportation, and other miscellaneous costs for services that your business may require to function.

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Conclusion

As a major trade hub in the region, Singapore offers lucrative advantages for aspiring import and export businesses. While it is easy to register as a business in Singapore, the skill to manage costs and the ability to comply with local regulations will be key factors to a business’s success. Wise Business helps import and export businesses save on the hefty costs of handling international payments by offering low-fee payments and always using the mid-market exchange rate.

Low-Fee Transactions: Wise charges a small, upfront fee for each transaction, which is generally lower than the fees charged by traditional banks for international wire transfers. You will be able to see the exact fees charged before you make the payment, so you know exactly what you're paying.

Mid-Market Exchange Rates: Wise uses the mid-market exchange rate, also known as the "real" exchange rate, which is the midpoint between the buy and sell rates on the global currency market. Traditional banks and other providers often add a markup to this rate, which is a hidden cost. By using the mid-market rate, Wise helps businesses avoid this extra expense and save on currency conversions.

➡️ Get started with Wise Business today

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

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Sources:

1. Singapore Exports, Imports and Trade Partners | The Observatory of Economic Complexity (OEC)
2. Merchandise Trade | Department of Statistics Singapore
3. Corporate Tax Rate | IRAS
4. Individual Income Tax rates | IRAS
5. Controlled & Prohibited Goods for Import | Singapore Customs
6. Strategic Goods Control List | Singapore Customs
7. Types of Transhipment/Movement Permits | Singapore Customs
8. SME Working Capital Loan | Enterprise Singapore
9. SME Micro Loan | DBS Singapore
10. Business Term Loan | OCBC Singapore
11. Global Company Partnership | Enterprise Singapore
12. Depositing Goods in Free Trade Zones | Singapore Customs
13. GST Guide for Free Trade Zones, Warehouses and Excise Factories | IRAS