Everything You Need to Know About Business Licenses in Singapore - Updated 2024
Wondering if you need a license to start your company in Singapore? Most companies in Singapore don't need a business license or permit to start operating, but it depends on the nature of your business.
This comprehensive guide will help you figure out whether you need a license, which one you will need and how to get it. It's relatively easy to incorporate a company in Singapore, but that's just the first step to actually doing business in the country.
Depending on the nature of your business or company, you'll need to acquire a license and permit after your company has been incorporated with Accounting and Corporate Regulatory Authority (ACRA).
What Are the Types of Business Licenses in Singapore?
There are three types of business license in Singapore:
Compulsory License
Compulsory licenses are the type of license that certain Singapore companies need to acquire before they can start operations. For example, childcare centres will need to acquire a Child Care License. Other examples include banks, real estate companies, and trading companies.
Occupational License
You need to have a license to work in some professions. The occupational licenses can be acquired from the professional organizations that govern that profession. Examples of these professions are, but not limited to, lawyers, doctors, accountants, and architects.
Business Activity Based License
The government requires certain businesses to get a license in order for them to carry out their trades, e.g. selling liquor or pharmaceutical products. So it’s important that you check the licensing requirements before starting up!
The timeline for getting a license may vary depending on the type of license you need and how long it takes to prepare certain documents. In some cases, it can take a few days or up to a few weeks to get a license.
The timeline for getting a license may vary depending on
The type of license you're required to get
The time it takes to prepare certain documents.
Whether the license is approved by one or more authorities
In some cases, it can take a few days, weeks, or up to a few months to acquire a license.
As mentioned above, the license may also be approved by more than one authority, which might require physical visits or inspections of the applicant's place of business.
Industry-Specific Business Licenses in Singapore and Where to Get Them
Listed below are the different industry-specific business licenses that companies need to acquire in order to do business in Singapore.
Retail Business
Retail businesses will need a business license, depending on the goods and services they provide, and the type of goods and services being sold. Your business is considered retail when you sell merchandise and goods directly to consumers. A good example of retail businesses and their licenses are as follows:
Supermarkets - Running a supermarket business in Singapore will require a Supermarket License, which allows the company to sell and/or prepare raw and cooked food within your retail space. This license ensures that you follow food preparation and food safety, and store cleanliness guidelines.
Pharmacies - You'll need to secure a Pharmacy License to operate a pharmacy in Singapore from the Health Sciences Authority. This license will allow you to sell therapeutic products classified as Prescription-Only Medicine (POM) or Pharmacy-Only Medicine (P) and Oral Dental Gums.
Telecommunications Business - To sell telecommunications equipment, you'll need to acquire a Telecommunications Dealer's (Class) License. This will allow you to sell approved telecommunication equipment by the Infocomm Media Development Authority. You'll find the telecommunication retail shop licensing requirements listed on their website.
Trading Companies (Import and Exporting)
Singapore is the 9th largest merchandise exporter in the world as of 2022, so it's no wonder that foreign entities are looking to open up an importing and/or exporting business in the country. To operate as a trading company and to do business in Singapore, you'll need to activate your company account with Singapore Customs.
The application process timeline may take a few days and up to a few weeks. Once your application is approved, you'll receive a Customs Approval Letter, which is valid as long as the company remains active. If your company carries out one or more of these activities, you'll need to apply for the permit:
Import/exports of all good
Import of high-technology items
Import/exports of controlled goods
Export of local goods
Export, transhipment, or transit of Strategic Goods
Hospitality Business (Hotel, Boarding House, Guest Home)
Under the Hotels Act, companies need to acquire the Hotel Keeper's License before they are allowed to operate a hotel in Singapore. Lodging houses, guest homes, and boarding houses are also classified as hotels.
Business owners will need to acquire a Certificate of Registration to use their premises as a hotel from the Hotels Licensing Board (HLB).
Hotel owners will need to acquire additional business licenses and permits if they do any of the business activities as part of their offerings:
Housing TVs
Running a spa
Organization of ad-hoc entertainment (i.e. live band performances)
Selling tobacco products
Operating a swimming pool
Halal certification
Playing copyrighted music/videos
What About Airbnb?
Individuals looking to provide short-term housing solutions such as Airbnb don't need to acquire a license to operate, but rather, they need to ensure that their guests using their rental homes are not causing disturbances to the neighbourhood.
There's no need for any licenses and permits to operate as an Airbnb as of the moment because the country is still looking into this particular sector of the hospitality business and the business model itself. In Singapore, short-term renting is not illegal, but it contradicts the 3-month minimum rental period required by the Urban Redevelopment Authority.
Spa and Massage Services
Whether you're operating a hotel that provides spa and massage services or operating a salon, you'll need to apply for a Massage Establishment license. You can apply for a said business license through the Singapore Police Force (SPF) website.
The Massage Establishment license will allow you to offer massage services, manicure treatments, spa baths, foot reflexology services, and other similar services or treatments as part of your company's offerings.
Travel Agency
Individuals or companies in the business of providing or making travel arrangements and/or conducting tours in and out of Singapore must acquire a Travel Agent License under the Travel Agents Act. This business license can be acquired using the TRUST (Travel Agents and Tourist Guides Licensing System from the Singapore Tourism Board.
Under Section 4 of the Travel Agents Act, a company or individual carries out the business of a travel agency if they advertise or do any of the business activities:
Supplying a person a right to travel on any conveyance
Booking a hotel room or boarding premises for a person in Singapore or somewhere else
Reservation, buying, and reselling tickets for travel for a person on any conveyance
Supplying any tour, regardless of organized by the person, to any other person
Carry out similar activities as prescribed
There are two kinds of travel agency licenses and permits available for travel agents who want to do business in Singapore:
Niche License - This allows travel agents to advertise, sell, and arrange tours only within Singapore. This license has lower minimum financial requirements and allows businesses to provide conveyance to passengers but without any right of accommodation.
General License - This license has higher financial requirements, and is required for agents who conduct other activities that are outside the scope of the Niche License (e.g. providing the right of accommodation or tours out of Singapore).
Food and Beverage Business
Starting as a food and beverage business in Singapore requires a lot of business licenses and permits. But this shouldn't be a hindrance because Singapore is hailed for being a food haven by foreigners and tourists alike. There are more than enough people in Singapore to appreciate what you have to bring to Singapore cuisine.
If you already have an idea of what kind of F&B establishment you're looking to open in Singapore, you can fill out this government e-Adviser form to find out what licenses and permits you'll need.
For new food services business owners, they'll need to acquire the Food Shop License from the National Environment Agency (NEA) for the retail of food and drinks after company incorporation with Accounting and Corporate Regulatory Authority (ACRA).
During the planning stage of the business, you'll need the following:
Planning Permission from Land Agencies
Tenancy/Lease Agreement
Assuming you already have chosen a location for the business, authorities will conduct an inspection of the said location before granting you the license. Registration for Goods and Services Tax (GST) is also a must before starting the business.
Here are a few additional licenses that you'll need on top of the Food Shop License:
Halal Certification - You'll need a Halal Certificate from the Majlis Ugama Islam Singapore (MUIS) based on a set of systems-focused Halal Certification requirements. These requirements are referred to as the Singapore Muis Halal Quality Management System and cover the food supply chain. The Halal Certification is a must if you plan to cater to Muslim customers in Singapore.
License for Importing Food Ingredients - You'll need this license if you want to import fresh food products (e.g. meat, fresh fruits, vegetables, fish, etc.) in Singapore.
Liquor License - If your F&B business plans selling alcohol, you need to acquire a Liquor License from the Singapore Police Force (SPF).
Basic Food Hygiene Course - All food handlers will need to pass this course, including you.
Central Provident Fund Registration - It's your obligation as an employer to sign up for this mandatory social security savings plan.
All licenses and permits can be applied for via LicenceOne, Singapore's online portal for business licensing in Singapore. Licensing requirements vary depending on the kind of restaurant or cafe registered in Singapore.
Event Management Business
Event management companies are companies that organize different events in the country. Events are classified as:
MICE (Meetings, Incentives, Conferences and Exhibitions).
Performing arts events including plays, dance and musical performances, etc.
Leisure and lifestyle events, including sports and recreational events, fashion-related events, and community-based events to name a few.
After you've incorporated your company, you'll need one or more licenses depending on the kind of events or activities you are organizing. One or more licenses on here are only valid for the duration of the event.
Arts Entertainment License - The Arts Entertainment License is needed for events that are conducted indoors or outdoors. These events include, but not limited to, musical concerts and performances, plays, and more. This license is issued by the Infocomm Media Development Authority of Singapore (MDA)
Copyright Permit - Organizers of indoor and outdoor events such as concerts, carnivals, and roadshows need this permit to play copyrighted videos and/or music before using them. The Collective Management Organizations represent the copyright owners through:
Composers and Authors Society of Singapore (COMPASS) - The organization represents lyricists and composers.
Horizon Music Entertainment Pte Ltd - Represents a specific group of record labels.
InnoForm Entertainment Pte Ltd - Represents major record labels
Recording Industry Performance Pte Ltd (RIPS) - Represents major record labels.
Trade Fair Permit - The National Environment Agency issues this permit to organizers who want to hold trade fairs. Trade fairs are defined as activities that make use of makeshift stalls to sell food and non-food products and entertainment. Only grassroots organizations, charitable organizations, Town Councils, civic, educational, social, or religious institutions are allowed to organize trade fairs.
Animal Exhibition License - This is issued by the Agri-Food and Veterinary Authority of Singapore (AVA). The Animal Exhibition license is required for events where animals will be used for exhibitions or performances. Organizers must comply with Animal Exhibition Licensing Conditions and Guidelines and Animal Performances Guidelines.
Public Entertainment License - The Public Entertainment License is issued by the Singapore Police Force. Organizers use this license for events and entertainment that the public can access for free or if the events provide free admission. These events include acrobatics or gymnastics, magic shows, gaming shows, circus shows, and computer gaming events to name a few.
Publishing Business
Local and international publications who want to start a publishing business in Singapore will need one of two primary licenses: the Newspaper Permit and the Printing Press License.
The Newspaper Permit is obtained from the Infocomm Media Development Authority of Singapore (MDA) and is intended for a publishing business who plan on printing or publishing a newspaper in Singapore or selling or distributing of offshore newspaper in Singapore.
The Printing Press License is for any publishing business who want to operate a press to print newspapers, brochures, maps, charts, magazines, and other publications in Singapore. You can obtain this license from the Registrar of Newspapers.
Real Estate Agencies
Singapore's real estate industry has grown over the last few years, and with its growth comes a statutory board to help regulate the industry and raise professional standards for real estate agents.
Under the Estate Agents Act, all real estate agencies, be it sole proprietorships, private limited companies, or partnerships, that carry out real estate agency work in Singapore need to be duly licensed by the Council of Estate Agencies (CEA).
Private Education (including Childcare Centre and Kindergartens)
There are mandatory licenses you need to obtain if you want to run a private education business in Singapore. Private education businesses include childcare centres, academic and non-academic institutions, and kindergartens.
An important requirement for setting up a private education business in Singapore is the premises for the school or educational institution. You will need planning permission from the Urban Redevelopment Authority of Singapore (URA).
Renovating the premises will require a building work permit obtained through the Building and Construction Authority of Singapore (BCA). All renovation projects need to be performed by licensed contractors, including architects. You'll also need the Certificate of Statutory Completion and Temporary Occupation Permit from BCA before you can occupy the premises.
You'll also need a Fire Safety Certificate (FSC) before occupying the premises, which is obtained from the Singapore Civil Defense Force through a registered engineer or architect.
The type of license you need will depend on what educational establishment you want to start. For educational or training services, except for non-academic schools, catering to 10 or more clients will need to register with the Ministry of Education or Council for Private Education.
How Do You Check If You Need a License For Other Activities?
All business licensing and permits can be obtained via the LicenseOne Portal. You can also refer to this Referral Authority Chart which will let you know which Singapore government agency is responsible for providing certain mandatory licenses for a specific business:
Closing
There you have it, everything you need to know about acquiring different business licenses in Singapore. For foreigners looking to incorporate a business in Singapore, you can work with company incorporation services such as Piloto Asia to make the company incorporation process as smooth as possible and to help facilitate the application of such licenses and permits (when needed).
Frequently Asked Questions
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When setting up a Pte Ltd company in Singapore, there are several important factors to consider:
Company Registration: Register your company with the Accounting and Corporate Regulatory Authority (ACRA) and obtain the necessary business licenses.
Shareholder and Director Requirements: Ensure you have at least one shareholder and one director who is a Singapore resident.
Company Secretary: Appoint a qualified resident company secretary within six months after the Singapore company incorporation.
Issued Share Capital: Have a minimum of SGD 1 worth of issued share capital.
Registered Office Address: Have a registered office address in Singapore.
Compliance with Legal Requirements: Ensure compliance with all relevant legal and regulatory requirements.
Our team at Piloto Asia is well-equipped to guide you through the entire process and ensure your company set-up is seamless and compliant.