Guide to Business Licences in Singapore

Very few types of business activities require a business license in Singapore. Essentially, a business license is a permit issued by a Singapore government agency that allows you to conduct a specific type of business. In order to apply for a business licence in Singapore, the company must be first registered with the registrar of companies. To find out how to register a private limited company in Singapore, see Singapore Company Registration guide.

The purpose of this guide is to provide a basic introduction to most common business licences in Singapore. Note that the information provided here is for general guidelines only and is not meant to replace professional advice.

Types of Business Licences in Singapore

The various types of Singapore licences and permits are:

• Occupational licences for professional services - Professionals such as lawyers, doctors, financial planners, pilots, commodity futures traders and accountants need to obtain occupational licences to practice.
• Compulsory licences - Certain types of businesses require a special licence before they can operate. Private schools, travel agencies, liquor distributors, money remittance agencies and childcare centres are some examples.
• Business activity licences and permits - Licences and permits you need if you decide to carry out certain types of business activities. For instance, you may need to renovate, erect advertising billboards on your premises, or export your products. For each of these activities, you need to get a licence or permit.

Common Licences and Permits

In general, it may take between one week to two months to get a business licence or permit depending on the type.

Hiring local and foreign employees

You business can hire local and foreign employees. 

If you plan to hire a foreign employee (for short or long-term assignment), you company must obtain a work pass for the employee from Ministry of Manpower. For more information, refer to Singapore Work Pass guide.

When you hire local employees, your company must register with the Central Provident Fund (CPF) Board and contribute to the CPF fund (a statutory retirement scheme). Both employer and employees make monthly contributions to the fund. No CPF contributions are required for foreign employees. 

For more details, see Singapore Employee Hiring guide.

Using personal residence as home office

If you are considering to use your personal residence as your home office, Singapore's Home Office Scheme allows you to conduct small-scale businesses from your home provided the business activities do not fall under the scheme’s negative list.

To run a home office, you must be the owner, tenant , or be authorized to stay at the place. The scheme defines Home Offices as “premises used by its occupants primarily for residential purposes with part or parts of the premises being used by the occupants as an office” and emphasizes that the said premises cannot facilitate more than two persons who are engaged in the operation of the office and who are not residents in those premises.

Registration with the Housing & Development Board (for HDB premises) or Urban Redevelopment Authority (for private premises) is required in order to use your residence as a home office in Singapore.

For more details on choosing an office for your business, see Home Office vs Business Centre vs Traditional Office. 

Goods and Services Tax (GST) Registration

Your business must register for GST if the annual turnover of your business is more than 1 million SGD.

Goods and Services Tax (GST) is similar to Valued Added Tax (VAT) in other countries and is a relatively new form of tax in Singapore. GST was implemented on 1st April 1994 in Singapore. The GST Act is modelled after the UK VAT and New Zealand GST legislations.

GST is levied on all imports of goods in Singapore and on supplies of goods and services in Singapore made by entities that are GST registered.

For more details, refer to  Singapore GST Registration guide.

Engaging in import / export activities

If you plan to engage in import/export business, you need to first register with Singapore Customs and obtain a CR number. Further need to obtain a specific import/export licence depends upon whether you are dealing with controlled goods or non controlled goods. Generally, Singapore permits the import and export of non controlled goods without any licence requirements. Examples of non-controlled goods include: books, stationery, handicrafts, jewellery, toys and games, sporting and recreational goods, CD ROMs, VCDs, DVDs, flowers and plants etc. 

If you are trading in controlled goods you will require a relevant import/export licence relating to the goods you are dealing in, issued by the specific governing agency. Examples of controlled goods include cigarettes and tobacco products, drugs, petrochemicals, animals and food products. 

For more details, refer to Singapore Import and Export guide.

Running an employment agency

If you wish to operate an employment agency providing recruitment and placement services to other employers, you are required to obtain an Employment Agency Licence, governed by the Ministry of Manpower (MOM) of Singapore. Employment agencies include: head-hunting/executive search companies, foreign domestic worker agencies, local and foreign staffing companies, construction worker agencies, online jobs portals, nanny-placing agencies and so on. You do not require an employment agency licence if you are recruiting persons under your direct employment. 

For further details relating to eligibility criteria, documents required, processing time and fee, refer to Starting an Employment Agency guide.

Running a travel agency 

If you are interested in starting a travel agency that puts together a travel or tour package (including transport services only as part of the package and not otherwise), you will need to apply for a Travel Agent's Licence with the Singapore Tourism Board (STB). The license is required if your business falls within Section 4 of the Travel Agents Act (Cap. 334) as below:

• selling tickets entitling an individual to travel, or otherwise arranging for a person a right of passage on any conveyance. A Travel Agency Licence is not required if the conveyance is owned by the company.
• facilitating a person’s ability to travel by selling or arranging transport tickets, hotel accommodation and foreign visas to destinations outside and within Singapore. A travel Agency Licence is not required if the mode of transport and the place of accommodation is owned by the company.
• purchasing for resale the right of passage on any conveyance
• arranging or conducting tours within or outside Singapore
• hold yourself out as or advertising that you are willing to carry on any activity referred to in the previous points. 

Details regarding eligibility criteria, documents required, processing time and fee can be found at our Starting a Travel Agency guide.

Running a restaurant business

To open a retail food outlet where food and/or drinks are sold, you will need to obtain a Food Shop Licence, issued by the National Environment Agency (NEA) under the Environmental Public Health Act. Please note that you must first finalize your place of retail operation before applying for the Food shop License as the authorities will inspect the premises prior to granting an in principle approval for the license. Once you have obtained this basic mandatory licence, you might also want to consider obtaining the following additional licences/permits:

• Halal Certification issued by the Islamic Religious Council of Singapore (MUIS) - especially useful since Muslims constitute 15% of the population in Singapore.
• Liquor Licence issued by the Liquor Licencing Board for the retail sale of liquor, including beer. Different types of licences are issued depending on whether consumption is on or off premises.
• Tobacco Retail Licence, issued by the Health Sciences Authority, for the retail of tobacco products.
• Licence for Importing Food Ingredients - If you intend to import processed food products and food appliances, you need to apply for a Registration Number with the Food Control Division (FCD) of Agri-Food & Veterinary Authority of Singapore (AVA).
• For operating a central kitchen you may require Factory Registration and a Licence to Operate a Meat or Fish Processing Establishment or Cold Store, issued by the AVA. 

For more details about eligibility criteria, documents to be submitted, processing time and fee, refer to Starting a Restaurant in Singapore guide.

Running an education business

The Economic Development Board launched the Global Schoolhouse initiative in 2002, with the objective of transforming Singapore into a world renowned education hub. With the aim of streamlining the education industry and its diverse players, the Singapore Government has laid down certain regulations and statutory requirements for entrants to this sector.

Depending on the type of educational establishment you wish to set up (childcare centres, preschools, K-12 schools, post-secondary schools, tution centres, enrichment schools, etc.), one or more of the relevant business licenses may be required for your company.

For further details, refer to Starting a School in Singapore guide.

Running an event management company

Events can be classified as

• Exhibitions, concerts and indoor events
• Community, sporting and outdoor events
• Meetings, conventions and conferences

Depending on which category of events you specialise in you will have to obtain the following permits:

• Arts Entertainment Licence issued by the Media Development Authority (MDA) of Singapore, for carrying out any form of public entertainment concerning the arts, viz. plays, musical performances, dance performances, exhibitions, variety shows and pop/rock concerts.
• Permit for Road Occupation Management issued by the Land Transport Authority (LTA) of Singapore, for permission to carry out works affecting public streets and public areas.
• Copyright Permit issued by The Composers and Authors Society of Singapore (COMPASS), for events such as concerts, roadshows, fairs and exhibitions, etc involving the public performance of Copyright musical works.
• No Objection Letter for Selling Food & Beverage at Event issued by the National Environment Agency (NEA) of Singapore.

For further details, refer to Starting an event management company in Singapore.

Running a fund management / financial advisory company

If you wish to engage in fund management or financial advisory activities the following licences will be applicable to you:

• Capital Markets Services Licence issued by the Monetary Authority of Singapore (MAS) under the Securities and Futures Act, for conducting any business dealing with securities.
• Commodity Licence issued by the MAS under the Securities & Futures Act and Financial Advisers Act, for commodity trading activities that involve soliciting funds from the public.
• Financial Adviser's Licence issued by MAS under the Financial Advisers Act, for conducting financial advisory activities.

For more details, refer to Licences for Financial Services guide.

Running a retail shop

Licencing requirements for retail shops vary depending on the nature of goods and services being sold. Examples include: 

• Tobacco Retail Licence, issued by the Health Sciences Authority, for the retail of tobacco products.
• Liquor License issued by the Liquor Licencing Board for retail of liquor.
• Telecommunication Dealers Licence issued by Infocomm Development Authority (IDA) of Singapore for the manufacture, import, hire, sale, offer or possession for sale of any approved telecommunication equipment or equipment set out in the First Schedule of the Telecommunication (Dealers) Regulations.
• Pet Shop Licence issued by the AVA, if you intend to use a premises for the display, sale or export of pets. You do not need a pet shop licence if you are only selling pet accessories or engaging only in pet grooming activities.
• Wholesale Dealer's Licence For Chinese Proprietary Medicine (CPM) issued by the Health Sciences Authority of Singapore (HSA) under the Medicines Act to allow the companies to import Chinese Proprietary Medicines (CPM). The CPM must be listed and approved for sale in Singapore prior to importation.
• Certificate of Registration of Pharmacy issued by HSA for pharmacies or drugstores.
• Cosmetic Products Notification under the guidance of HSA for retail of cosmetic products.

Running an IT services company

Singapore is a popular destination for establishing software consultancies among both individual entrepreneurs and MNCs. Setting up a software consultancy does not require you to apply for any business specific licence. As soon as you have incorporated your company, you are ready to go!

In Singapore, establishing a business is a relatively simple and straightforward procedure and the business licensing procedure has been simplified to a great extent. If you provide all the necessary documentation and satisfy and comply with all other requirements, there is no reason for your license to be rejected. The ease of doing business aids in fostering Singapore's efficient and pro-business environment, making it a popular destination for start-ups.

While some of the issues regarding licenses and permits can be handled on your own, it is usually a good idea to engage a professional services firm to save you time and headaches.

Other Related Topics

Singapore Company Incorporation | Singapore Taxation | Singapore Immigration