Start Delivery Business Singapore 2026: Legal & Vehicle Guide

Starting a Delivery Business in Singapore: What Entrepreneurs Need to Know

The Singapore delivery market is growing rapidly. With e-commerce expanding and same-day delivery becoming standard, many entrepreneurs are asking the same question: How do I start a delivery business legally, and what vehicle should I buy?

This guide covers the verified steps, real costs, and vehicle options you need—sourced exclusively from official Singapore government sources (ACRA, IMDA, LTA) current as of January 2026.

Important: This is educational information only. Confirm all requirements with relevant authorities before proceeding.

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ACRA Business Registration: Your First Legal Step

Every delivery business in Singapore must register with ACRA (Accounting and Corporate Regulatory Authority). You have three options.

Sole Proprietorship: Fastest Registration for Solo Operators

Official ACRA registration:

• Cost: SGD $100 (name reservation $15 + registration $100)

• Processing time: Standard 14–60 days

• Best for: Solo operators, single vehicle, minimal compliance preference

Important tradeoffs:

• Personal liability for all business debts (your personal assets are at risk)

• Not eligible for government grants (EDG, Startup SG require company structure)

• Harder to scale if you want partners or multiple vehicles later

How to register: Bizfile portal (www.bizfile.gov.sg) → "Register new business entity"

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Private Limited Company: Recommended for Scalability & Grants

Official ACRA registration:

• Cost: SGD $315 (name reservation $15 + incorporation $300)

• Processing time: Standard 1–3 business days

• Best for: Future expansion, partnership potential, government grant access

Legal requirements:

• Minimum 1 local director (Singapore citizen, PR, or EP holder)

• Minimum paid-up capital: SGD $1

• Registered office address (physical location, not P.O. box)

• SSIC code: 4920 (Freight transport by road)

• UEN auto-generated upon approval

Key advantages:

• Limited liability protection (your personal assets protected)

• Eligible for EDG grants (70% vehicle subsidy)

• Easier to add partners or scale to multiple vehicles

• Professional credibility with corporate clients

How to register: Bizfile portal (www.bizfile.gov.sg) → "Register new entity" → "Incorporation of Local Company"

Timeline: Register on Monday morning, receive Certificate of Incorporation by Wednesday

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Five Steps to Register Your Company via Bizfile

Step 1: Reserve your business name (5 minutes)

• Log in using Singpass at www.bizfile.gov.sg

• Search availability (try keywords: "Express," "Delivery," "Logistics," plus your brand)

• Pay SGD $15 name reservation

• Approval: Instant or within 1 business day

Step 2: Prepare required documents

• Director NRIC/passport

• Shareholder NRIC/passport

• Registered office address (must be physical street address)

• SSIC code: 4920

Step 3: Submit incorporation application

• Return to Bizfile

• Fill "Incorporation of Local Company" form

• Enter reserved company name

• Enter director details (Singapore resident only)

• Enter registered office address

• Pay SGD $300 incorporation fee

• Submit

Step 4: Director approval (critical step)

• ACRA emails director with endorsement request

• Director logs into Bizfile and approves within 60 days

• Failure to approve within 60 days = application lapses

Step 5: Receive Certificate of Incorporation

• ACRA sends approval email

• Download Certificate of Incorporation

• Receive UEN (Unique Entity Number)

• Ready to open business bank account, apply for vehicle financing, register with LTA

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Do You Need an IMDA Postal Services License?

Most delivery startups do not need this license. Here's when it actually applies.

When IMDA Postal Services Operator (PSO) License is Required

You need a PSO license only if you provide conveyance of "letters" (written communications ≤500g) as a service business model.

Example: Traditional courier business carrying signed documents between offices

When You Do NOT Need IMDA License

You do not need IMDA PSO license if you:

• Operate food delivery service (Grab, independent food delivery)

• Deliver e-commerce parcels (Lazada, Shopee, independent fulfillment)

• Provide B2B logistics (warehousing, cargo transport)

• Operate as driver-for-hire (Lalamove, Grab Express model)

Bottom line for startups: Most delivery businesses in Singapore operate without IMDA licensing. Skip this unless you're specifically offering traditional postal/courier services.

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LTA Vehicle Registration: G-Plate vs S-Plate

All commercial delivery vehicles must register with G-plate (Commercial) registration. Personal S-plate vehicles cannot be used for business deliveries.

Required Documents for LTA Registration

• Business registration certificate (from ACRA)

• Vehicle inspection report (from LTA test center)

• Insurance proof (comprehensive coverage required)

• Director/owner identification

G-Plate (Commercial) vs S-Plate (Private)

Critical: Using S-plate vehicle for delivery = insurance automatically voids = complete liability if accident occurs

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Choosing the Right Commercial Vehicle for Your Delivery Business

Your vehicle choice determines profitability, scalability, and customer capacity. Here are three proven options.

Kei Van: Best for Urban Delivery Startups

The Suzuki Spacia Base is Singapore's most affordable entry point for delivery businesses.

Specifications:

• Body price: SGD $23,800 (ABLINK market pricing)

• Payload capacity: 1.0–1.2 ton

• Engine: 660cc non-turbocharged

• Fuel efficiency: 21.2 km/L

• Height: 1,800mm (fits all HDB carpark structures)

• Best for: Food delivery (15–30 deliveries daily), urban parcel delivery, same-day courier within 5km radius

Why kei vans make sense for startups:

• Lowest purchase price (SGD $23,800)

• Highest fuel economy (saves SGD 150–180/month in fuel)

• Zero carpark height restrictions

• Lowest insurance premiums (SGD $1,200–$1,400/year)

• Easy to park in congested areas

Financing example (60-month term):

• Down payment (40%): SGD $9,500

• Monthly installment: SGD $350–380

• First-year vehicle cost: SGD $14,800 (down payment + 12 months)

ABLINK's Suzuki Spacia listing: View current inventory

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Compact Van: Medium-Volume Delivery

Nissan NV200 (market price SGD $26,800–$28,000)

Specifications:

• Payload capacity: 1.5 ton

• Cargo space: 4.2m³ (30% more than kei vans)

• Fuel efficiency: 14.5 km/L

• Height: 1,920mm (some HDB carpark restrictions possible)

• Best for: E-commerce parcels (40–60 daily), food catering bulk delivery, inter-district routes

When to upgrade from kei van:

• Handling 40+ deliveries per day consistently

• Average parcel weight >5kg

• Regular cross-island routes (Jurong, Bukit Panjang, Changi)

• Starting with SGD $80,000–$100,000 capital

Finance cost: SGD $300–350/month (60-month term)

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10ft Lorry: High-Volume Fleet Operations

Models: Toyota Dyna, Isuzu NPR, Hino Dutro (market price SGD $85,000–$125,000)

Specifications:

• Payload capacity: 3–5 ton

• Cargo space: 10–14m³

• Driver license: Requires Class 4 license

• Fuel efficiency: 6–8 km/L

• Best for: Furniture/construction logistics, 100+ daily deliveries, warehouse operations, fleet businesses

Not recommended for solo startup because:

• High capital requirement (SGD $85,000+)

• Driver salary required (SGD $2,500+/month)

• Fuel costs significant (SGD $400–600/month)

• Scale only after Year 2+ profitability

ABLINK's 10ft lorry options:

• Isuzu N-Series 14ft Lorry

• Toyota Dyna vs Hino Dutro comparison

• 14ft Lorry Complete Buying Guide

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Commercial Vehicle Insurance: What You Must Know

Mandatory Requirement: Third-Party Liability

Requirement: By law, all commercial vehicles must have third-party liability insurance

What it covers: Damage to other people's property, medical claims from injuries

Cost: SGD $400–600/year

Important limitation: Third-party only does NOT cover your own vehicle damage, theft, or fire

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Recommended: Comprehensive Coverage

What it covers:

• Third-party liability (mandatory)

• Your vehicle damage (collision, accident)

• Fire and theft

• Windshield/lock/mirror damage

Cost range: SGD $1,200–$1,600/year for kei vans

NCD (No Claim Discount): After 1+ years without claims, premium drops 10–20%

Insurance Costs by Vehicle Type (2026 Rates)

Top Insurers for Commercial Vehicles (2026)

Get 5 quotes; premiums vary SGD $300–500 between insurers:

• Singlife

• MSIG

• ECICS

• Etiqa

• AIG

Each uses different risk models, so shopping 5 insurers can save SGD $300–600/year

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Real First-Year Costs: Startup Capital Needed

Startup Costs (Month 0)

If purchasing vehicle outright (no financing): Add SGD $14,300 (SGD $23,800 vehicle – down payment already included)

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Monthly Operating Costs (Ongoing)

If hiring driver: Add SGD $2,500/month salary (total SGD $5,900–6,150/month)

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Revenue Projections: When Will You Break Even?

Food Delivery Model (Suzuki Spacia)

Typical operation:

• Deliveries per day: 20–30

• Daily earning per delivery: SGD $8–12

• Monthly deliveries: 400–600 (assuming 20–25 working days)

• Daily revenue: SGD $160–360

• Monthly revenue: SGD $3,200–9,000 (conservative: SGD $4,000–6,000)

Profitability timeline:

• Months 1–3: Break-even (customer acquisition phase, high marketing costs)

• Months 4–8: SGD $800–$1,500/month profit (if 25+ daily deliveries achieved)

• Month 9+: SGD $1,500–$3,000/month sustainable profit (reputation/repeat customers built)

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E-Commerce Parcel Delivery Model (Suzuki Spacia)

Typical operation:

• Parcels per route: 20–40

• Earning per parcel: SGD $5–8

• Daily revenue: SGD $100–320

• Monthly revenue: SGD $2,000–6,400 (conservative: SGD $3,000–5,000)

Profitability timeline: Similar to food delivery; depends on volume consistency

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Government Grants Available for Delivery Startups

Enterprise Development Grant (EDG): Up to 70% Vehicle Subsidy

Official eligibility:

• Registered company with <SGD $100M annual revenue

• At least 30% local equity

• Operational for at least 1 year (apply in Year 2)

What EDG covers (up to 70% of cost):

• Commercial vehicle purchase: Up to SGD $16,800 per vehicle

• GPS/delivery management software: Up to SGD $7,000

• Driver training programs: Up to SGD $3,500

• Fleet management systems: Up to SGD $5,000

Timeline: Apply in Year 1; receive reimbursement in Year 2

Apply: www.bsg.gov.sg/EDG

Startup SG Equity: SGD $5,000–$15,000 for New Businesses

Official eligibility:

• Company incorporated <6 months

• Full-time commitment from founder

• Singapore-based

Grant: Non-repayable SGD $5,000–$15,000

Apply: www.startupsg.gov.sg

Estimated total grants available for Year 1: SGD $20,000–$30,000 if you qualify

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8-Week Launch Timeline: From Registration to First Delivery

Week 1–2: Legal Setup

•  Choose business structure (recommendation: Private Limited Company)

•  Reserve business name on Bizfile (SGD $15)

•  Submit ACRA incorporation application (SGD $300)

•  Receive director endorsement request from ACRA

•  Director approves appointment

Week 3: ACRA Approval & Banking

•  Receive Certificate of Incorporation from ACRA

•  Open business bank account (DBS, OCBC, UOB; 1–2 days)

•  Receive UEN from ACRA email

Week 4–5: Vehicle & Insurance

•  Visit ABLINK showroom or commercial vehicle dealer

•  Test drive Suzuki Spacia or Honda N-Van

•  Arrange vehicle financing (40% down payment)

•  Get 5 insurance quotes from competing insurers

•  Purchase comprehensive insurance

•  Complete vehicle purchase paperwork

Week 6: Vehicle Registration

•  Submit vehicle for LTA inspection

•  Apply for G-plate commercial registration with LTA

•  Install GPS tracker & delivery management app

•  Set up business phone line & email

Week 7–8: Operations Launch

•  Create simple website or Facebook business page

•  Reach out to 20–30 potential customers (F&B shops, e-commerce businesses)

•  Set delivery pricing & service terms

•  Execute first 5–10 delivery runs

•  Get customer feedback & refine operations

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Common Legal Mistakes Delivery Startups Make

❌ Using Personal S-Plate Vehicle for Business

Risk: Insurance void; personal liability if accident occurs

Solution: Register G-plate commercial vehicle from Day 1 (LTA registration SGD $800–1,000 protects entire business)

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❌ Skipping Comprehensive Insurance

Risk: One accident = SGD $50,000–$150,000 third-party liability claim = business bankruptcy

Solution: Comprehensive coverage mandatory (SGD $1,200–1,600/year insurance protects against this)

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❌ Not Registering Company Properly

Risk: Operating illegally; cannot access government grants; tax penalties

Solution: ACRA registration via Bizfile = 10 minutes online + 1 day approval (SGD $315)

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❌ Pursuing IMDA PSO License Unnecessarily

Risk: SGD $1,000 admin fee + SGD $4,000+/year license fee + SGD $200,000 performance bond requirement

Solution: Most delivery startups don't need IMDA license. Operate as logistics/delivery provider (no license required unless doing traditional postal business)

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❌ Choosing Wrong Vehicle Size

Risk: Too small = capacity bottleneck; too large = unsustainable financing + driver salary

Solution: Start with Suzuki Spacia kei van for 20–30 daily deliveries; upgrade to NV200 after 6 months if volume allows

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FAQ: Delivery Business Startup Questions Answered

Q: Do I need a special license to start a delivery business in Singapore?

A: No special license required for general cargo/food delivery/e-commerce delivery. Business registration via ACRA is mandatory (SGD $315, 1–3 days). IMDA Postal Services license only applies if doing traditional letter/document courier services (rare for startups).

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Q: What's the absolute minimum capital to start?

A:

• With vehicle financing: SGD $12,000–$16,000 (down payment + insurance + registration)

• Without financing: SGD $25,000–$30,000 (cash vehicle purchase + operating costs)

• Alternative: Join Lalamove/Grab Express as driver (zero capital, immediate earnings)

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Q: Suzuki Spacia or Honda N-Van for delivery?

A:

• Suzuki Spacia (SGD $23,800): Best value, fuel efficient (21.2 km/L), fits all carparks

• Honda N-Van (SGD $24,800): Better performance, safety tech, requires more fuel (18.8 km/L)

Recommendation: Start Suzuki Spacia; upgrade after Year 1 if profitable

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Q: Can I use personal car for deliveries?

A: No. Personal (S-plate) insurance explicitly excludes business use. Insurance becomes void if used for delivery = complete liability exposure. Must register G-plate commercial vehicle.

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Q: What happens if I have an accident?

A: Comprehensive insurance covers vehicle repair + third-party liability. Driver responsible for negligence under employment law. Insurance premium may increase at renewal (NCD lost).

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Q: How long until profitable?

A:

• Break-even: Month 4–6 (depending on customer acquisition success)

• Sustainable profit: Month 8–12 (SGD $1,000–$2,000/month typical)

• High profit: Year 2+ (SGD $2,500–$4,000/month when reputation built)

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Q: Do I qualify for government grants?

A:

• Startup SG: SGD $5,000–$15,000 (brand new company <6 months)

• EDG: 70% vehicle subsidy (applies Year 2 onwards, up to SGD $16,800 per vehicle)

Total possible: SGD $20,000–$30,000 in grants if you meet criteria

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Next Steps: Get Your Commercial Vehicle From ABLINK

Your vehicle choice determines profitability. ABLINK specializes in matching startups with the right vehicle.

Browse vehicle options:

• Suzuki Spacia Base (SGD $23,800)

• Honda N-Van Commercial Van

• Nissan NV200 Compact Van

• Toyota Hiace Van

• 10ft Lorry Options (Isuzu, Toyota Dyna, Hino Dutro)

• 14ft Lorry Complete Guide

• Pickup Lorry Options

For financing consultation: Commercial Vehicle Financing Guide 2026

For vehicle comparison: Leasing vs Buying Analysis

Contact ABLINK:

• WhatsApp: ABLINK Contact

• Phone: Direct inquiry for delivery business consultation

• Address: 421 Tagore Industrial Avenue, Singapore

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Summary

Starting a delivery business in Singapore is achievable with SGD $15,000–$20,000 startup capital (with financing) or SGD $25,000–$30,000 (cash purchase). The path is straightforward:

1. Register company via ACRA (SGD $315, 1–3 days)

2. Insure comprehensively (SGD $1,200–1,600/year)

3. Buy right vehicle (Suzuki Spacia at SGD $23,800 or NV200 at SGD $27,000)

4. Register G-plate with LTA (SGD $800–1,000)

5. Launch with direct B2B outreach + platform partnerships

Success depends on customer acquisition, service quality, and smart vehicle selection. The Suzuki Spacia Base remains the optimal starting vehicle for urban delivery entrepreneurs in 2026.

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Published: January 2026 | Last verified: January 20, 2026
Data sources: ACRA (ACRA.gov.sg), IMDA (IMDA.gov.sg), LTA regulations, commercial insurance quotes
Disclaimer: This guide is informational only. Confirm all requirements with ACRA, IMDA, and LTA before proceeding. Regulatory requirements change; verify latest updates with official government websites.