Here’s how to start a trading business in Singapore the easy way. You have a product to import or export, but you need to follow the correct steps to avoid problems with customs.
While Singapore is one of the best places in the world for trade, the process has important rules. A small mistake on a form, like using the wrong product code, can get your shipment stuck, lead to business penalties and hurt your cash flow.
This guide breaks down the entire process into simple, actionable steps. We’ll answer the key questions every new trader has:
- How do I set up my company correctly for trade?
- How do I activate a customs account?
- What permits or licences will my products need?
- How do I handle taxes like the Goods and Services Tax (GST)?
- What records do I need to keep?
Let’s get your import and export business started the right way.
Skip the confusion.
How to start a trading or import-export business in Singapore
Part 1: Set up your company for trading in Singapore (ACRA + SSIC)
First, you need to build a solid business structure.
Step 1: Choose your structure & SSIC code
Most traders choose a Private Limited Company (Pte. Ltd.). This is a smart choice because it protects your personal assets (like your house and savings) if the business runs into trouble. It also looks more professional to banks and partners.
You’ll also need to pick a business code (SSIC). The most common code for trading various goods is SSIC 46900 (Wholesale trade of a variety of goods without a dominant product).
Tip: The SSIC code you choose tells the government what your business does. The right code can make getting licences easier and may help you qualify for government grants.
Step 2: Incorporate your company
To register your company with the Accounting and Corporate Regulatory Authority (ACRA), you’ll need:
- A company name
- At least one local resident director
- A company secretary (to be appointed within 6 months)
- A registered address in Singapore
- Minimum S$1 paid-up capital
Incorporation cost: S$15 to reserve your company name, and S$300 to incorporate.
Step 3: Open a business bank account
A dedicated business bank account is essential for trading. Look for a multi-currency account to reduce fees when paying overseas suppliers.
Also, set up GIRO arrangements early:
- GIRO with IRAS for GST payments.
- Inter-Bank GIRO (IBG) with Singapore Customs for duties/GST on imports.
- (Optional) Authorise your declaring agent to use your IBG on your permits for instant clearance.
Part 2: Getting ready to import & export
Once your company is set up, it’s time to get ready for your first shipment. This is where the trade-specific rules begin.
Step 4: Activate your Customs Account
After your company is registered, you’ll get a Unique Entity Number (UEN). Use your UEN to register for a Customs Account online. This is free and allows you to apply for import and export permits.
You’ll use this account to submit or authorise permit applications in TradeNet.
Step 5: Decide if you want to self-declare or use an agent
You have two choices for handling customs declarations:
- Appoint a Declaring Agent (recommended for new SMEs).
- Register as a Declaring Agent and file in-house (more control, more setup).
Even if you use an agent, authorise them to lodge permits against your IBG so duties/GST are deducted automatically.
Step 6: Get your product’s HS code right
Every product has a Harmonised System (HS) code. Think of it like a passport for your product. This code tells customs officials exactly what your item is, which determines:
- What taxes or duties apply.
- If your product is a “controlled good” and needs a special licence.
Examples of Controlled Goods:
- Food products: Singapore Food Agency (SFA)
- Cosmetics/health supplements: Health Sciences Authority (HSA)
- Telecommunications equipment: IMDA
- Live animals/animal products: Animal & Veterinary Service (AVS)
- Plants/plant products: NParks
Using the wrong HS code is a common and costly mistake. It can lead to fines, seized goods, and long delays. Always confirm the code with your supplier or agent.
Step 7: Set up Inter-Bank GIRO (IBG)
Inter-Bank GIRO (IBG) is a direct payment link between your bank account and Singapore Customs. When your shipment lands, this link allows duties and GST to be paid automatically.
Why is this so important? Your goods clear immediately without any payment hold-ups. If you don’t have your own IBG, your agent pays for you and then passes the cost on, often with extra fees and delays. This simple setup prevents that headache.
Step 8: Apply for permits via TradeNet
TradeNet is the national system for all import/export permits.
- For imports: You need an “Inward” permit before your goods arrive.
- For exports: You must file for an “Advance Export Declaration” (AED) before your goods are shipped out of Singapore. Forgetting this leads to fines.
GST, duties & helpful schemes for import and export business in Singapore
- Import GST: As of 2026, the Goods and Services Tax (GST) is 9%. It’s charged on the total value of your imported goods.
- Duties: Most goods are not-dutiable. Common dutiable categories include alcohol, tobacco, motor vehicles, and petroleum products.
To help with cash flow, you can apply for government schemes:
- Import GST Deferment Scheme (IGDS): Lets you pay import GST later with your regular GST filing, instead of at the port.
- Major Exporter Scheme (MES): If you re-export most of your goods, you can suspend import GST.
- Zero-GST Warehouse (ZGS) Scheme: Allows you to store imported goods in a licened warehouse without paying GST. You only pay the tax when the goods leave the warehouse to be sold in Singapore.
Import-export pre-shipment checklist: How to start a trading business in Singapore smoothly
- Company incorporated with the correct SSIC
- Customs Account activated
- Declaring Agent appointed or DA account set up
- IBG set up (preferably yours; agent authorised to use it on your permits)
- HS codes verified via HS/CA Checker; CA licences (if any) secured
- Import/export permits prepared and lodged in advance
- Cargo insurance in place
- Record-keeping system ready (retain 5 years)
How Sleek helps you start and run a trading business in Singapore
Starting a trading business in Singapore is very rewarding, but preparation is the key to success. If you focus on getting the fundamentals right, complex rules become a smooth and predictable process.
While the process is straightforward, the details can feel overwhelming. Sleek is here to handle the administrative work for you, so you can launch your trading business with confidence.
We set you up for success by offering:
- Complete company setup: Ensuring you have the right SSIC code for trade, help you incorporate in Singapore and manage all your corporate compliance correctly.
- Banking and customs readiness: Guidance on multi-currency banking using the Sleek business account, guiding you through the Customs Account and the IBG payment system.
- GST and accounting handled: GST registration/filings plus simple bookkeeping and accounting for audit-ready records.
The global market is ready for your product. Don’t let paperwork create friction. Talk to a Sleek expert today, and let’s turn your trading ambition into a fully operational business.
Get import-export ready.
FAQs on how to start a trading business in Singapore
Do I need a licence to start a trading business in Singapore?
Not always. For general wholesale trade, you typically just need to incorporate your company with the right SSIC code (e.g., 46900). However, if you’re importing or exporting controlled goods (like food, telecoms, plants, cosmetics, or medical devices), you’ll need additional licences from the relevant authority (e.g, SFA, HSA, IMDA, NParks).
What is the cost to start an import/export business in Singapore?
The basic incorporation cost with ACRA is S$315 (S$15 for name reservation + S$300 for company registration). Beyond that, costs depend on your setup: business bank account, customs permits, Inter-Bank GIRO (IBG), and any licences required for your goods.
How long does it take to start a trading company in Singapore?
If all your documents are ready, incorporation can be done within a few days. Customs Account activation is typically quick. IBG setup and licences for controlled goods can take longer, depending on your bank and the authority’s processing times.
What is an HS code, and why is it important?
An HS code (Harmonised System code) is a classification for your product. It determines:
- Whether your goods are dutiable.
- What taxes apply (e.g., GST, customs duty).
- Whether extra permits or licences are required.
Getting the HS code wrong can mean delays, fines, or seizure of goods.
What taxes apply to imports in Singapore?
All imports are subject to 9% GST (as of 2025). GST is calculated on the CIF value (Cost, Insurance, Freight) plus any customs duty (for dutiable goods). Some goods, like alcohol, tobacco, petroleum, and motor vehicles, are dutiable, meaning you’ll pay both GST and excise duties.
Do I need a Declaring Agent for import/export permits in Singapore?
You don’t have to, but most SMEs do. A Declaring Agent files your TradeNet permits on your behalf. You can also register as a Declaring Agent yourself if you want full in-house control, but this takes extra setup.
What is Inter-Bank GIRO (IBG) and why do I need it in Singapore?
IBG is an automatic payment arrangement with Singapore Customs for duties and GST. Without it, you may face delays in clearing shipments because payments must be made manually or via your agent.
What records must I keep for my import and export business in Singapore?
By law, you must keep all trade records for 5 years. This includes invoices, bills of lading, airway bills, packing lists, permits, and certificates of origin. Both Singapore Customs and IRAS require this for audit purposes.
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