What Are the Advantages of Setting Up An Entrepot in Singapore?

Nov 1, 2024 elitestage No Comment
What is entrepot trade?First of all, we need to clarify a concept: what is entrepot trade?

Entrepot Trade (Entrepot Trade), also known as transit trade (Intermediary trade) or re-export trade (Re-Export Trade), refers to the international trade in the import and export of goods for sale, not in the producer country and the consumer country directly between, but through the third country in the trade. This type of trade is known as Re-Export Trade to the country of transit.

Why choose Singapore as the re-export trade place?

 

01 Unique geographical location – one of the world’s entrepot ports
Singapore is one of the world’s entrepôt trade ports, with its unique geographical environment and free trade port policy, Singapore has a close relationship with countries and regions all over the world. By re-exporting products to Europe, America and other countries and regions through Singapore, you can avoid the impact of some economic and other factors.
02 Save tax costs
Singapore is a reputable and strictly regulated international trade hub. If properly arranged, the profits earned by Singapore companies outside Singapore are not subject to income tax.Tax relief, Singapore is one of the few countries and regions in the world where the tax burden is lighter, resulting in lower costs, more conducive to enhancing product competitiveness. Whether it is in the form of local processing or re-export of goods, will enable enterprises to have a good return on profits.

03 Fast and efficient logistics
The Port of Singapore has established business ties with more than 600 ports in 123 countries and regions around the world, with more than 430 liners departing weekly to all parts of the world, providing a wide range of routes for shippers to choose from. With such a high-density, all-encompassing liner route to pave the way, containers in need of transit to Singapore will soon be transferred to the next flight to the destination.Most of the containers in the port of Singapore in the port of storage time of 3-5 days, of which 20% of the storage time is mostly 1 day. Singapore as an international container transit center, to a certain extent, to improve the overall efficiency of the global container transport system.

04 Southeast Asia Manufacturing Alliance, diversified supply chain development
Singapore has been committed to complementary advantages with Southeast Asian countries or regions, contributing to the huge effect of one plus one is greater than two, helping manufacturing enterprises to rapidly expand the market, aimed at building a diversified supply chain, creating a new pattern of regionalization.
05 Open economic policy to help companies take off
The Singaporean government encourages foreign investment with an open policy, coupled with a relaxed business environment, and then international traders can buy and sell goods more freely, reducing trade protection measures and barriers. 

 The process of doing re-export trade through a Singapore company

 Singapore company registration process

 

1、Choose the type of company and company nameBefore registering a company, choose the type of company to be registered and confirm the company name.

2、Determine the director and secretary

At least one director and one secretary are required. The requirement for a director of a Singapore company is to be at least 18 years of age and there is no restriction on the nationality or number of directors. The secretary must be a Singapore citizen, permanent resident or hold an employment pass.

3、Prepare company registration documents

Prepare the required documents for company registration, including articles of association, letters of appointment of directors and secretary, share certificates of the company, identity documents of directors and shareholders, registered address and lease agreement.

4、Submit Registration Application

Submit the application for Singapore company registration.

5、Open Bank Account

After the successful registration of a Singapore company, if you need to open a bank account, you need to provide company information and documents required by the bank.

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