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It’s a known fact that Singapore’s real estate market and its economy have remained healthy and robust despite the recent slowdown too. Many builders and developers have been purchasing land at all-time high prices, and the sale of land has gone up by 29% as compared to the data five years ago. Singapore’s rich pool of human resources and amazing location pulls in affluent international investors to set up their businesses in this island or even make it as their second home. Both residences and official spaces are getting stronger when it comes to demand and hence the prices are also estimated to shoot up in 2018.
Singapore is fast gaining the top-slot as one of the rapidly growing economies in Asia and therefore, its real estate industry is booming too. There is high demand for not only residential complexes but also commercial and official space. Singapore is known as a flourishing trade and financial hub. Its capacity for strong economic recovery and a thriving employment scenario has helped in an upward trend in market optimism. Global investors, Businessmen, and professionals are buying residential spaces either for the purpose of their occupation or as also as an investment. Even the property rental market in this country has gone up rapidly because of the constant inflow of foreigners.
The real estate or property market in the island has seen unparalleled growth off late. Consequently, the real estate agency segment is rapidly being seen as a profitable option for business. This article provides general guidelines on the process of setting up a real estate company in Singapore.
As per the existing legislation, all the real estate agencies should get a license from the Council of Estate Agencies (CEA) before beginning the agency work in Singapore, be it for domestic or foreign properties. Professionals who are doing real estate agency work on an individual basis in Singapore should be registered with the CEA through the real estate agency that they are associated with.
As per the Estate Agents Act, all the real estate agencies be it sole-proprietorships, partnerships, or even a private limited company, who are conducting estate agency work in Singapore be it for domestic or foreign properties should necessarily be licensed by the CEA or Council of Estate Agencies.
A professional who is working for a real estate agency needs to first register with the CEA, through the real estate organization that he or she is working for.
Applying for the real estate agency license involves various steps like submitting some requisite documents and information to the CEA or Council of Estate Agencies. Here is a snapshot of the procedure:
Remember that the application has to be submitted by the appointed Key Executive Officer (KEO) such as the company’s CEO, COO, or MD. Once the necessary documents are submitted and are in order, an email notification is sent stating that the application is approved. The license is not issued as a hard copy, but a soft-copy could be easily downloaded and printed by simply logging into the CEA website. This application processing usually takes around 4-6 weeks.
Now talking about the license fee; the annual charges or fee for real estate agencies ranges between S$300-S$3,000 depending upon the number of employees or real estate agents in that agency. The application fee to get a new license or to renew an existing one is S$107 and it can be paid every year irrespective of the fact that the license could be still valid for more than one year.
The annual registration charges or fee for all the real-estate agents employed is S$230 and the application fee for new registration or renewal of the registration of every real estate agent in the agency are S$54. Please note that these charges or the annual registration fee and the application fee is payable every time the real estate agent changes his/her companies.
Though you could apply for a license on your own, it is usually better to hire a professional services firm to save your precious time and effort. So if you are thinking of setting up a private limited company in Singapore or accounting services for small business in Singapore, do get in touch with us at IMC, and we will be more than happy to assist you.
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