Part I of starting a restaurant business in Singapore gave a birds-eye view of the primary legalities for opening a restaurant in Singapore. Having completed the initial phase, your restaurant can head start the operations and as you progress, the other miscellaneous formalities will need to be completed, some of which is within your discretionary purview.
Halal Certification
To seize a slice of the market when opening a restaurant in Singapore, where Muslims constitute a significant proportion (15% of the population), it pays to be a Halal certified establishment provided that you restaurant can keep up with the rigorous stipulations laid by the Islamic Religious Council of Singapore (MUIS) - the authority for Halal certification in Singapore.
The fee for Halal certification for restaurants varies from S$480 to S$ 640 depending on the floor area. Since August 2006 all new applications for Halal certification are to be made via MUIS e Halal System (MeS).
Liquor License
If before or after starting your restaurant business in Singapore, you wish to add an extra zing to your service by serving liquor in your restaurant, you would require a Liquor License. Retail of liquor including beer in restaurants would require a Liquor License from the Liquor Licensing Board.
Applications can be submitted online via Online Business Licensing Service (OBLS). The license will be issued for a period of 2 years. For liquors served in the premises of the restaurant, the license is of 2 types namely, public house license and Beer house license.
Depending on the retail hours the public house license is classified into first and second class license. The fee for the license varies from S$520 to S$1600 for a period of two years. An application with all the required supporting documents submitted can be processed within 14 days.
CPF Contributions for Local Staff
The establishment when it is in full swing will employ locals as well. This in a way is imperative because work passes for foreign workers in the service industry such as restaurants are issued on the basis of quota. Therefore some locals have to be employed and this is deemed as a direct economic benefit of allowing you to open your restaurant business in Singapore.
Businesses employing citizens and PR are mandated to contribute towards the CPF - a retirement scheme designed for the Singapore citizens and permanent residents. Since July 1 2007, employer must contribute 14.5% of the employee’s ordinary wages towards CPF. To this effect all establishments must register with the Central Provident Fund Board by completing the FORM CPF/1 when making your first CPF payment. The form must be accompanied by the contribution cheque which is duly crossed and drawn in favor of “CPF Board”, with the employer’s name, contact details and the words "Making First CPF Contribution” indicated at the back of the cheque.
After processing the first payment, the board will issue a welcome package and an employer reference number for your restaurant business in Singapore. All subsequent contributions can be made online.
GST Registration & Payments
The government of Singapore levies a tax on consumption of goods and services called GST (Goods and Services Tax) and the tax is paid when money is spent on goods or services, including imports. Any business that has annual revenue of S$1million or more must register with the IRAS (Inland Revenue Authority of Singapore), the comptroller of GST.
Currently the GST is charged at the rate of 7% on the price of the goods or services sold. Once your Singapore restaurant is registered with GST, you will have to charge the GST to your clients. At the time of filing the GST returns, such GST charged is deducted from the GST your restaurant has paid towards the supplies purchased. The difference is the GST payable by your restaurant to IRAS or the amount to be refunded by the IRAS to you.
If at anytime after starting your Singapore restaurant, you determine that you will be exceeding the annual turnover of S$1 million, you are required to register for GST and you must apply within 30 days of becoming liable. If you estimate that your annual restaurant revenue will be less than S$1 million then it is left to your discretion to register for GST.
License for Importing Food Ingredients
As a restaurant serving specialty food, you may have to bring in some indigenous ingredients from your home country. 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). Processed food products includes raw spices, raw or semi processed food ingredients, flour, bottled water, liquors, wines, confectioneries, noodles & pasta, beverages, etc.
Applications can be submitted online via Online Business Licensing Service and processing time is 3 working days and it involves an administrative Fees of S$21.50, and is subject to renewal every year. You must first obtain the general import/export licence (called Central Registration (CR) Number) from Singapore Customs before applying for the Registration Number with FCD. The objective behind this license is to ensure the safety of food entering Singapore.
With these licenses in place, you are ready to import your super secret food ingredients needed for the success of your restaurant in Singapore.
Good Luck!
Once all the mandatory paper work or rather e-work has been done, you are well on your way to a dream journey of starting your restaurant business in Singapore. You can take the business in full gear and serve mouth watering food to your clientele and win their hearts. Singapore is a foodies paradise and good food is sure to get the patronage it deserves.
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