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Open an Auto Parts Business in Singapore

Open an Auto Parts Business in Singapore

Since the beginning of the year, the number of investors interested in the Singapore automotive industry has grown continuously. One of the main reasons of this outcome is the government’s support for companies operating in the automotive industry, no matter the services they offered. When considering the fact that Singapore is among the few countries which have started testing self-driving vehicles, one can understand why this sector is one of the most successful and innovative in Singapore’s economy.

If you are interested in starting a business in the automotive sector, our Singapore company formation experts recommend you set up an auto parts company. With some of the largest automobile producers with headquarters in Singapore, opening an auto parts business here is definitely a good investment.

Why open a company in Singapore as an auto parts business?

Foreign investors interested in exploring the auto parts segment of the automotive industry in 2024 should know that they have the possibility of either manufacture them or sell them or even both options. It should be noted that Singapore citizens have a taste for exclusive car makes, therefore opening a car parts company in the city-state will bring a solid and constant income.

The Singapore company formation process when creating a car parts business in 2024

The company registration procedure when opening an auto parts business in Singapore will imply preparing the incorporation documents as for any other type of company and filing them with ACRA. These documents must state the company’s activities. Following the company registration procedure, the business owner must apply for various licenses and comply with several requirements imposed by the authorities.

Our company formation consultants in Singapore can assist with the registration process of the car parts business.

Licenses for auto parts companies in Singapore

Singapore auto parts businesses must apply for various licenses depending on the activities it will undertake. In the case of manufacturers and sellers, a manufacturing permit, respectively a retail license will be required. However, import and export licenses could also be required if the car parts are intended for trade.

The automotive sector in Singapore to grow in coming years

Automotive is a sector made of several sub-industries, each playing an important role in Singapore’s economy. Auto parts are sold on the market for both citizens and taxi companies, including ridesharing enterprises, as these are more and more present in traffic.

Automotive:

  • is expected to grow at a 1.49% rate per year between 2024 and 2029, including the auto parts sale segment;
  • by the end of 2024, the number of companies operating in this industry is expected to reach 941;
  • the number of employees is also expected to increase to 50.510 in 2024.

For full information on the requirements to open a company in Singapore as an auto parts business in 2024, please feel free to contact our company incorporation agents.