SIMC Protocol in Singapore

10.09.2021

An extremely unpleasant situation with the worldwide pandemic has affected businesses and economies of many countries. Other victims of the coronavirus are supply chains – many enterprises had to revise their logistics routes and some of them failed to satisfy the needs of many clients. But during the next year, the same companies and organizations faced an increased demand for ADR changes in Singapore so the goods could be delivered on time.

In normal conditions resolving a conflict according to the law will take more time and assets. The situation has become worse when some governments decided to activate extremely strict measures and created some kind of a blockade to prevent spreading the virus.

One should know that now if a person is trying to create a company in Singapore, they can only meditate. It is the only way to settle a commercial dispute according to Singapore and many other countries’ laws.

SIMC Protocol

SIMC Protocol is the solution that is aimed to make the process of resolving disputes easier. At first, this protocol has been created as an addition to the legislation. It is aimed to completely prevent legal actions from any party that started a dispute. This protocol provides an opportunity to resolve a conflict without the help of a court.

If any businessman decides to create a company within Singapore territory, they can exploit SIMC protocol in the following situations:

  • A dispute has been initiated because of the coronavirus situation.
  • If the described protocol could be used to resolve a conflict.

If the Protocol can be used any party can apply for meditation in Singapore and to do that they pay 250$ (the standard fee is 10000$).

After transferring the fee parties can agree to meet online at any time (10 business days is the limit). Taking into account the amount of the dispute, all parties have to transfer the following fees:

  • Around 3000$ in SGD currency.
  • 6500$ or 0.3% of the disputed sum in SGD currency.
  • 10000$ or 0.13% of the disputed sum in SGD currency.

SCM

Why Singapore system of resolving international disputes is the best? It is because SCM has been created and signed on the territory of this country. In 2019 46 states signed the agreement and another 6 states joined later. The main aim of the SCM was to make international disputes easier and more efficient.

Experts from COREDO are always there for you to provide with more information or giving an advice about business in Singapore. 

 

LEAVE AN APPLICATION AND GET
A FREE CONSULTATION