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Open a Taxi Company in Singapore

Open a Taxi Company in Singapore

Foreign investors interested in the transportation industry have various options depending on the amount they are willing to invest. If car repair shops are profitable, so are businesses which have as an object of activity taxi services. This is because the number of Singapore citizens leaving their cars at home and choosing alternative transportation means is on the rise.

If you are interested in starting a cab company in Singapore, you must comply with several regulations imposed by the Land Transport Authority. Our Singapore company formation consultants can offer more information on these regulations.

How to open a company in Singapore in order to provide taxi services

Once the object of activity has been established, the investor must register the taxi company with the Singapore Accounting and Corporate Regulatory Authority. One must have all the paperwork prepared and the car fleet purchased before starting to operate. Also, because only Singapore citizens are allowed to obtain a taxi driver license, foreign investors opening taxi companies in the city-state benefit from various incentives offered by the government which stimulates those who hire personnel from the local workforce.

Our company registration specialists in Singapore can assist with the company formation procedure. They can also offer additional information on the incentives available for taxi companies in Singapore in 2024.

Obtaining a taxi driver’s vocational license in Singapore

The taxi driver license is a special permit that can be obtained only by Singapore citizens with a valid driver’s license. However, there are other requirements one must fulfill when opening a company in Singapore as a taxi company and hiring personnel in 2024. Our company formation agents present the requirements a taxi driver must comply with:

  • be at least 30 years old;
  • have completed a special course for taxi drivers;
  • have a valid 3/3A class driving license for at least one year;
  • speak English;
  • pass a medical exam.

The Singapore taxi driver license is issued by the Land Transport Authority must be renewed every three years.

Review of the regulatory regime for taxis in Singapore

At the beginning of 2024, the Land Transport Authority announced a revision of the taxi and other point-to-point (P2P) transport operators. The new regulations would imply the following:

  • Diesel, petrol, and hybrid taxis will be allowed to operate for 10 years from now instead of 8, in order to recover the costs of newer vehicles;
  • the inspection frequency will also be reduced from 6 months to one year;
  • however, the inspection frequency for private hire cars with chauffeurs driving vehicles older than 10 years will be increased from one year to 6 months.

For full information on how to set up a taxi business in the city-state, please contact our company formation agents in Singapore. They can also assist with the Singapore company formation procedure and with shelf companies for sale in Singapore.