How to Open a Restaurant in Singapore - Part 1

Thinking of opening a restaurant in Singapore? The city state of Singapore is celebrated as a culinary paradise. The melting pot of multitude of culture boasts of a vibrant food scene which is sure to thrill the global gastronomes. Cuisines from all parts of the globe, American, Mediterranean, Italian, Thai, Indian, Indonesian, Malaysian, Mongolian, Brazilian, you name it you have it here in this small island state.

Do you wonder how the small city state, has such a dynamic restaurant industry? The avid patronage of the locals, the curious palates of the tourists and the drooling taste buds of expatriates together have made the culinary kaleidoscope all the more colorful. The favorite hobby of the nation is eating, to be more specific eating out and most of the young Singaporeans do not cook at home hence, a strong market for the restaurant business in Singapore.

The market being receptive to a variety of cuisines, enterprising restaurateurs aspiring to launch their food business in Singapore will find the going smooth and safe provided they have an exciting menu, enticing taste and the right price coupled with courteous service. Restaurateurs who are keen to set their table in Singapore will find this article informative published in two parts. This Part (Part I) will clear some clouds regarding the primary legalities to get going with starting your restaurant venture in Singapore. The start up phase involves the following important aspects:

• Business Incorporation
• Food Shop License
• Halal Eating establishment Scheme
• Liquor license
• GST Registration
• CPF Registration
• Registration to import processed Food products and Appliances

Company Incorporation

Now that you have decided that Singapore is the ideal location for opening your restaurant, the first order of business is to setup a Singapore company.  For detail, see Singapore Company Incorporation guide.

Relocation for Foreign Owners
You may either be the chef de’ founder or the founding manager injecting finance and managing the restaurant enterprise, either way, the business in its infantile phase requires you to nurture at least until it breaks even and stabilizes. Successful opening of a restaurant in Singapore will likely require your presence especially in the early years.

Under the Singapore Immigration Regulations, any foreigner who wishes to engage in any business, profession, occupation or any form of paid employment in Singapore is required to apply for an Employment Pass (EP) or an Entrepreneur Pass (Entrepass).

Food Shop License for Restaurant

After you have settled your company registration and relocation visa matters, you will need to identify a space that is ideally suited for the menu you serve and your target market. Under the Environmental Public Health Act, it is mandatory to secure a Food Shop License issued by the National Environment Agency (NEA) for retailing food and/or drinks. Finalizing the place for restaurant operations should precede the application for Food shop License because the authorities will inspect the premises before granting an approval for the license.

The application for the Food Shop License must be accompanied by the following supporting documents:

• A photocopy of one of the following (where applicable):
  • Both sides of identity card [for application as Individual] or
  • Business profile of the company or
  • Certificate of registration from Registrar of Societies
• A scaled metric layout plan of the premises showing the layout in the kitchen, preparation area, refreshment area, toilets, stores, etc.
• Tenancy agreement between the landlord and the applicant.
• Approval(s) from Housing Development Board (HDB) [for HDB premises only], Urban Redevelopment Authority (URA) & / or Building and Construction Authority (BCA) [where applicable]
• The list of food handlers employed.
• Typhoid inoculation certificates for food handlers.
• X-ray certificates for food handlers aged 45 years old and above.
• The list of Food Hygiene Officers employed using the prescribed form obtainable from the relevant Regional Office.

Application for the Food Shop License for your Singapore restaurant is made online and the processing time is approximately 1-2 weeks. There will be a pre-licensing inspection of the premises where you plan to open your restaurant and depending on the outcome of the inspection, the processing time may be affected. If the application and supporting documents are in order, an in-principle approval and a list of hygiene requirements for compliance will be given to the applicant.

You may commence the set up or renovation of the premises for your Singapore restaurant according to the layout plan submitted in your Food Shop License application. Once set up or renovation of the premises is complete, you will need to inform the NEA to arrange for a site inspection to verify the compliance of all the hygiene requirements. Upon verification of the hygiene requirements, the license will be issued. The license has to be renewed every year.

Hiring Staff

Starting a restaurant means you will need to hire local and perhaps foreign workers as well. Staff in most restaurants in Singapore consists of both local and foreign workers due to the fact that most Singaporeans don't like to work in thiskind of industry. However, work passes for low to mid-skilled foreign workers ( Work Permit and S Pass categories of work passes) are issued on the basis of quota which means you must maintain a certain ratio of local and foreign workers.

For more details on staff hiring, refer to Employee Hiring Guide for Singapore Companies.

These are the most preliminary yet primary legalities while opening a restaurant in Singapore. This can be accomplished easily with the help of professional firms who provide company incorporation and related business services.

Opening a Restaurant in Singapore - Part II of this guide will give you an overview of the other formalities that you may need to handle while starting a restaurant in Singapore.

Other Related Topics

Singapore Company Incorporation | Singapore Taxation | Singapore Immigration