How to Start a Trading Company in Singapore

Singapore is one of the world’s most connected trading hubs, handling more than US$1.9 trillion in offshore trade and hosting around 350 global traders and 150 global banks. This reflects its strong role in global supply chains and international financial flows.

Its trade strength is further supported by 29 trade agreements, which help businesses move goods and expand into new markets with fewer barriers.

For entrepreneurs, setting up a trading company in Singapore means operating in a stable, well-regulated, and highly connected environment built for global trade and long-term growth.

Why is Singapore an Ideal Place to Start a Trading Company?

Singapore is a strong base for trading businesses, supported by 600+ global port connections, a logistics system ranked #1 in the World Bank Logistics Performance Index, and 29 Free Trade Agreements (FTAs) that open access to key global markets.

1. Strong Global Trade Volume

Singapore recorded about S$1.3 trillion in merchandise trade (2024), reflecting its strong position in global import, export, and re-export activity.

2. Strategic Trade Infrastructure    

The country is linked to over 600 ports through 200 shipping lines, enabling fast and efficient movement of goods across major global markets.

3. Major Offshore Trade Hub

More than US$1 trillion in offshore trade flows through Singapore, reinforcing its role as a key re-export and routing centre in global supply chains.

4. Established Trading And Banking Ecosystem

Singapore hosts around 350 global traders and 150 global banks, giving businesses strong access to financing, trade services, and international counterparties.

5. Strong Trade Agreement Network

With 29 trade agreements in force, companies benefit from easier market access, reduced trade barriers, and smoother cross-border expansion.

6. Predictable And Business-Friendly System

Clear regulations, strong governance, and a stable policy environment make Singapore a reliable base for trading companies focused on long-term global growth.

Types of Trading Companies in Singapore

Before registering your business in Singapore, it is important to understand which trading model best fits your operations.

Key Requirements Before Starting a Trading Company

Setting up a trading company in Singapore is straightforward, but it must follow clear legal and operational requirements to ensure smooth incorporation and compliance from day one.

• Register your company with ACRA.
• Appoint at least one resident director.
• Have a registered office address in Singapore (P.O. Box not allowed)
• Appoint a company secretary within 6 months of incorporation
• Decide your shareholding structure and ownership split
• Choose the correct SSIC code for your trading activity
• Open a corporate bank account for business transactions
• Register for GST if taxable turnover is more than S$1 million
• Register with Singapore Customs for import/export activities

How to Set Up a Trading Company in Singapore?

Singapore is consistently ranked among the easiest places in the world to start a business, with company incorporation usually completed in 1–3 working days through ACRA’s Bizfile system.

Step 1: Understanding Requirements & Eligibility

Before starting a trading company in Singapore, it is important to understand the basic legal requirements for setting up a company in Singapore. You must have at least one shareholder, one director (at least one must be locally resident), a registered office address in Singapore, and a clearly defined business activity. Foreigners can fully own a Singapore company, but must still meet local compliance requirements.

Step 2: Choose Your Business Structure

Business entities in Singapore are regulated by the Accounting and Corporate Regulatory Authority (ACRA). Most trading businesses are set up as Private Limited Companies because they are simple, scalable, and offer limited liability protection. ACRA provides clear guidance on selecting the right structure based on your business needs and trading activity.

Step 3: Name Reservation and SSIC Selection

Next, you must choose a unique company name and reserve it through ACRA’s BizFile portal. The name should not be identical or too similar to existing businesses. At the same time, you must select the correct SSIC (Singapore Standard Industrial Classification) code, which defines your trading activity such as import, export, wholesale, or e-commerce. This ensures your business is correctly classified for regulatory and tax purposes.

Step 4: Incorporation via BizFile

Once your name is approved and details are ready, you can proceed with incorporation through ACRA’s BizFile system. You must submit key information, such as shareholder and director details, the registered address, and business activities. After approval, ACRA issues your Unique Entity Number (UEN), which becomes your official business identification number in Singapore.

Step 5: Incentives & Schemes

Depending on your business model, you may be eligible for government support schemes and incentives designed to encourage trade and international expansion. Singapore offers various programs that support SMEs, innovation-driven businesses, and global trading companies.

Step 6: Permits and Licenses

If you are importing or exporting goods, register with Singapore Customs to get the required permits. Some products may also need additional approvals depending on the industry.

Step 7: Visas & Immigration

Foreign entrepreneurs who wish to operate or relocate to Singapore can apply for an EntrePass, which allows them to start and run a business locally. For long-term residence, eligible investors may also consider the Global Investor Programme (GIP), which provides a pathway to permanent residency based on investment and business contribution.

Frequently Asked Questions (FAQs)