Guide to Setting Up a Retail Business in Singapore - 2024 Update
The retail industry is strong in Singapore. It supports different businesses spanning different sectors, from supermarkets to pharmacy stores to clothing.
But what does it take to set up a retail store in Singapore? What are the requirements? What licenses do you need to operate?
We'll answer these questions and more in this article.
Inside the article...
Retail Industry and the Pandemic
The buying and selling of products are no longer confined to brick-and-mortar stores. Small businesses and corporate giants are selling products over the Internet, and for good measure.
The Covid-19 pandemic has taken a toll on the retail sector. With stores closing for months, it is no surprise that Singapore's retail sales for 2020 decreased by 15 index points (from 95% to 80%).
During the pandemic, many homegrown stores and brands have faced insurmountable challenges in the retail sector. With another Circuit Breaker on the horizon, retail owners are now asking for rental relief and support from the Singapore government. The transition from physical stores to online will not come easy because they come with unique business challenges absent from physical businesses. This transition is not easy for small businesses since their pockets aren't as deep as their multinational counterparts.
With that said, if you plan to set up a 100% online store operating in Singapore, you are still required to register the business and secure the licenses based on the sector your business is in.
Retail Industry: Its Sectors and Its Areas
Singapore is more than just a city of luxury brands and high-end malls. Singapore is home to local artisans, craftsmen, and businessmen with retail establishments.
In Singapore, there are 5 areas in the retail industries covering 18 sectors:
Specialty Retailing
Floristry
Newsagents, Stationery & Bookshops
Community Pharmacy
Speciality Stores
Jewellery
Fashion, Clothing & Footwear
Food & Beverage
Supermarkets
Liquor
Fruit & Vegetable
Fast Food & Take-away
Specialty Food
Work, Home & Lifestyle
Entertainment, Communication & Technology
Sport, Recreation & Leisure
Home Living
Hardware, Trade & Gardening
General Retailing
Department Stores
Discount & Variety
Wholesale & Logistics
What are the Requirements?
Whether you want to open up a physical store or a 100% online store, you have to comply with these initial requirements for opening a retail store in Singapore.
Incorporating Your Company on ACRA
The first requirement you need to comply with is to incorporate your company with ACRA. The process can be done on your own, or you can work with a corporate service provider.
Approval for Premises
If the location you want to set up your retail outlet is not intended or set up for retail yet, you'll need to seek approval from the Urban Redevelopment Authority of Singapore (URA) to change the location.
You'll also need a Fire Safety Certificate from the Singapore Civil Defense Force (SCDF).
Depending on your retail outlet, you'll need to secure additional permits from the following agencies:
Health Services Authority (HSA)
National Environment Authority (NEA)
Agri-Food & Veterinary Authority (AVA)
Infocommunications Development Authority (IDA)
Singapore Police Force (SPF)
Choosing a Premise
Securing a retail space goes beyond foot traffic and accessibility. You have to have a space that follows safety measures and adheres to the government's building codes.
Renovating the shop will require a permit to change the structure from URA and a building work permit from the Building and Construction Authority of Singapore (BCA).
While waiting for this approval, you'll need to obtain a Certificate of Statutory Completion and Temporary Occupation Permit (TOP) from the BCA before you can occupy the space.
Renovation works are carried out by qualified personnel (QP).
If you want to post signage for your business, which you most certainly will, you'll need an Advertisement License from BCA to place signage on buildings.
Even if the location was not intended for retail, you only need to carry out minimal work to convert it into a retail one. For example, if your old location was formerly a school, then you'll need minor adjustments and renovations to make sure that your location is set up for retail at the bare minimum.
If a location does not need to be renovated, you'll need to secure the Change of Use permit from the Urban Redevelopment Authority.
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What Licenses Do You Need For Different Types of Retail Outlets?
How to Get a Supermarket License in Singapore
If your option is to run a supermarket in Singapore, you'll need to secure a Supermarket License that will allow you to sell and prepare raw and cooked food within your retail location.
The license makes sure that business owners adhere to food preparation, food safety, and store cleanliness guidelines to prevent food-borne diseases.
Application Criteria
You can apply for a Supermarket License online and will be granted to you in five working days if the following criteria are met:
The applicant is a Singaporean or Singapore Permanent Resident,
Or a company registered with the Accounting & Corporate Regulatory Authority (ACRA).
A scaled plan (in metric format) of the premises that shows the layout of the store. The layout should cover preparation areas, toilets, and other parts of the store. The design of the store must comply with guidelines from the Code of Practice of Environmental Health.
For self-employed applicants, Medisave Contributions need to be updated before applying.
For physical retail stores that sell tobacco products, they need to secure a Tobacco Retail License from the Tobacco Regulation Branch of the Health Products Regulation.
Application Process
Complete the application process via GoBusiness. You'll have to complete the application form, upload the necessary documents, and then pay the application fee.
Here's the complete list of documents you need to submit with your application:
Planning Permission/Change of Use approval
A copy of Applicant's NRIC
A copy of the ACRA registered Company Business Profile
Letter of authorization (if the filer option is selected)
Layout plan of the premises
Floor plan (location plan)
Tenancy Agreement/ Letter of consent
Pest Control Contract
Cleaning programme/schedule
Basic food hygiene certificate/Refresher food hygiene certificate and Work Permit
Documentary proof of vehicle ownership
Food Safety Management System (FSMS) Plan (if your premises is required to implement FSMS)
WSQ Apply Food Safety Management System for Food Service Establishments' Certificate (Statement of Attainment)
HACCP Plan (for premises that are already HACCP-certified)
Valid HACCP certificate accepted by SFA
Letter issued by the "WSQ Apply FSMS for Food Service Establishments" course Approved Training Organizations
The Singapore Food Agency (SFA) will issue an In-Principle Approval (IPA) via email and the GoBusiness application. The IPA allows you to carry out your renovations. Incomplete applications will be rejected.
The next step is to book a pre-licensing inspection seven days in advance via SFA's online feedback form. It would help if you made sure that all items listed in the IPA are complied with; otherwise, there will be delays in the scheduling.
Once you comply with licensing requirements, the SFA will approve your application. The SFA will notify you within three working days via email and GoBusiness.
SFA will mail out the hardcopy licenses within seven working days, so expect to receive your copy within two weeks after successful payment. If you don't receive your hardcopy license, you can always contact SFA via their feedback form.
How to Get a Pharmacy License in Singapore
Through the Health Products (Licensing of Retail Pharmacies) Regulations 2016, a business owner looking to operate a pharmacy in Singapore will need to secure a license from Health Sciences Authority (HSA). The license allows the pharmacy to sell the following specified health products:
Therapeutic Products classified as Prescription-Only Medicine (POM) or Pharmacy-Only Medicines (P).
Oral Dental Gums
Licensed retail pharmacies will need to be managed by a Pharmacist-In-Charge (PIC) named in the license application. He or she will need to meet the following criteria:
Holds a valid practising certificate or license
Currently in active practice
What Are The Documents Required?
The following documents will need to be submitted when applying for a new retail pharmacy license:
Pharmacy Store Layout Plan - The store design should show the dispensing counter, general sales area, area for storing pharmacy-only or prescription-only medicines, and other supporting areas.
Valid Pharmacist Practising Certificate of the Appointed Pharmacist-In-Charge
Telepharmacy Declaration Form - This is signed and dated by the PIC for providing telepharmacy services for pharmacy-only medicines, when applicable.
Company's Standard Operating Procedures - If the pharmacy offers other activities or services, this will have to be included in the application. Other activities or services will consist of the compounding of non-sterile preparations, telepharmacy service, medication delivery service, etc.
How Do You Apply?
Submit your application through PRISM. You need to have the following information before you can access this e-service:
Licenses are good for one year. It would help if you renewed them before expiration.
Licensing New Outlets in Chain Pharmacies
New retail outlets from licensed chains of pharmacies will have to apply for a new retail pharmacy license through the Simplified Registration Scheme.
The Simplified Registration Scheme issues licenses to a new pharmacy outlet that’s part of a licensed chain of pharmacies even before an on-site audit is done. As long as the new outlet operates the same way as the other outlets, the license is issued directly.
But suppose this new outlet wants to provide additional activities or services (i.e. medication delivery services, telepharmacy, etc.). In that case, the pharmacy will need a separate license application mentioned above because the scheme does not cover this.
How to Renew Your License?
You can renew your licenses automatically via the GIRO auto-renewal scheme. GIRO Deductions are carried out 30 days before the license expires, so make sure that your GIRO account is adequately funded.
Insufficient funds will lead to unsuccessful license renewals, if ever. Lapsed licenses cannot be renewed, so you'll have to file for a new one.
You can apply for a GIRO by mailing a completed GIRO Application Form to:
HSA Finance Department
Health Sciences Authority
11 Outram Road, Singapore 169078
The application process takes about three to four weeks after the HSA receives the application. If the GIRO application is not processed in time, you'll have to renew your license manually.
How to Get a Telecom License in Singapore
If you want to set up a retail business that sells telecommunication equipment, you need to acquire the Telecommunications Dealer's Licence.
Applying for a Telecommunications Dealer's (Class) Licence
Registering for the Dealer's Class License is entity-based. However, you are still required to provide the Infocomm Media Development Authority of Singapore (IMDA) with an address and telephone number for the premises you wish to set up the retail of approved telecommunications equipment.
Applicants will need to be one of the following:
A business registered under the Business Registration Act (Cap 32)
Company registered or incorporated in Singapore under the Companies Act
Limited Liability Partnership (LLP) registered under the Limited Liability Partnerships Act
The application fee is S$50 and takes two working days to process.
Applying for a Telecommunication Dealer's (Individual) Licence
The Dealer's Individual License is intended for a standalone store or a premises-based stall, meaning every premise that sells approved telecommunications devices will require its license.
An applicant will need to be:
A business registered under the Business Registration Act (Cap 32)
Company registered or incorporated in Singapore under the Companies Act
Limited Liability Partnership (LLP) registered under the Limited Liability Partnerships Act
Application for Dealer's Individual License is S$250 per outlet and valid for five years.
Equipment Registration
To sell telecommunications equipment, you'd need to register them with the IMDA. Before registering, you need to ensure that the equipment follows IMDA Standards/Technical Specifications and that you have a valid Telecommunication Dealer's Licence with IMDA.
There are five types of applications, which will depend on the equipment types and registration scheme.
Enhanced Simplified Equipment Registration (ESER);
Simplified Equipment Registration (SER)
General Equipment Registration (GER)
General Equipment Registration by Certification Bodies (GER-CB)
Application for Confirmation of Conformity (COFC)
This table will show you what equipment falls under each registration category.
Some exclusions will prevent you from registering the following equipment with the IMDA because they're classified as Prohibited Telecommunication Equipment under the Third Schedule of Telecommunications (Dealers) Regulations. You need IMDA approval before you can import the following equipment for use in Singapore, or for re-exporting:
Scanning Receivers
Military Communication Equipment
Telephone Voice Changing Equipment
Radio-communication Equipment operating in frequency bands 880-915 MHz, 925-960 MHz, 1900-1980 MHz and 2110-2170 MHz (except for mobile phones or other equipment approved by the Authority)
Check out the full guidelines for acquiring the license and more for setting up a telecommunication retail store here.
How to Get a Liquor License in Singapore
If you're planning to sell alcohol in Singapore, you need to know that this is a heavily regulated business in the country.
You'll find the law on liquor licensing in the Liquor Control (Supply and Consumption) (Liquor Licensing) Regulations.
Before Applying for a Liquor Licence
There are different types of licenses that you need to apply for your business. The type of license you need will depend on these factors:
The type of alcoholic drinks you will be selling (i.e. whether it's only beer or liquor in general)
The time wherein you'll be selling the beverages
The type of business establishment you're setting up. This may be a bar with on-site consumption or a convenience store with on-site and off-site consumption of alcoholic beverages.
Depending on these factors, you'll need to apply for any of these licenses:
There are also a few points that you need to consider too.
| Types of Licenses | ||
|---|---|---|
| Class | Type of Establishment/License | Fee |
| 1A | Sale for on-site consumption of liquor from 6 am to 11.59 pm | $880/year |
| 1B | Sale for on-site consumption of liquor from 6 am to 10 pm | $660/year |
| 2A | Sale for on-site consumption of beer only from 6 am to 11.59 pm | $460/year |
| 2B | Sale for on-site consumption of beer only during specified daily trading hours (as indicated in licence) |
$285/year |
| 3A | Sale by retail* of liquor for consumption at premises other than the licensed premises from 7 am to 10.29 pm |
$110/year |
| 3B | Sale by retail of beer for consumption at premises other than the licensed premises only from 7 am to 10.29 pm |
$110/year |
| 4 | Sale by wholesale** of liquor for consumption at premises other than the licensed premises from 7 am to 10.29 pm |
$110/year |
| 5 | Temporary licence | From $22/day |
For instance, Class 3A, 3B, or 4 liquor license holders can only deliver liquor beyond trading hours specified in their license as long as these deliveries are made to non-public places such as consumers' homes or private offices.
You can apply for more than one license in different classes, except if you already have a 2A or 2B license, you won't be given a 3A license for the exact location.
Applying for a Liquor Licence
Now that you have an idea of what license you need to apply for, the next step is to make sure that you meet the application criteria and then meet the different requirements of the application process.
Application criteria
To apply for a license, you need to meet the following criteria:
Your business needs to be registered with ACRA unless you're only applying for a Class 2B license or if you're representing a registered society. If it's the latter, you need to be registered with the Registry of Societies (ROS).
Applicants must be a Singapore Citizen or Permanent Resident with a FIN issued by the Immigration and Checkpoints Authority (ICA).
Applicant needs to be a director of the company, a partner of the partnership, or the proprietor of the sole proprietorship.
Applicant must be fit and proper.
In terms of being "fit and proper" to hold a license, the Licensing Officer looks at the following factors:
Whether or not you've been convicted or invested for any offence
Your track record for complying with conditions of any liquor license if you've previously held a liquor license to a business you are or were associated with before application.
Whether or not you've been cooperative with police regarding any investigation about a previous liquor license.
If you had previous licenses, permissions, or permits issued, cancelled, or suspended for whatever reason.
Take note that even if you fail to meet the criteria in whether or not you're "fit and proper", it doesn't mean it will affect your license application. The Licensing Officer will determine the weight of these factors mentioned.
Application process
The application process is straightforward. All applications need to go through the application service provided by the GoBusiness Licensing Portal, along with the necessary fees.
The fee is determined by what class of license you're applying for, as found in the table in the previous section.
Once you apply, you may be contacted to provide supporting documents, and you'll need to be prepared just in case. These documents are:
ACRA Certificate
Copy of NRIC or Foreign IC (this is for non-Singaporeans with work permit)
Planning permission on the land use of premises from the Urban Redevelopment Authority (URA).
Copy of hawkers license issued by the National Environment Agency (for hawkers applying for an outdoor stall)
Copy of the Registry of Societies (ROS) Certificate (if the company is a registered society).
It takes twelve business days before you can be notified of the outcome of your application. You'll be notified of the outcome via SMS or the email address you used in the application.
Closing
When planning to set up a business here in Singapore, you should know that everything is regulated. You'll need licenses and permits to operate the business. The government has made it easy for local and foreign entrepreneurs to set up retail businesses here in Singapore, thanks to GoBusiness. You'll find that this site has everything you need when it comes to securing and managing license applications.
For your corporate service needs, you can always get in touch with Piloto Asia. We'd be more than happy to assist you in establishing your retail business in Singapore.
Frequently Asked Questions
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For retail business owners in Singapore, choosing the right accounting software is crucial for efficient financial management.
When considering accounting software Singapore small business options, look for features tailored to retail operations, such as inventory tracking, sales analytics, and integration with point-of-sale systems.
Some popular software options include QuickBooks, Xero, and FreshBooks. It's also beneficial to consult with an accounting firm familiar with the retail industry in Singapore. They can provide recommendations based on your specific needs and help with the software setup and integration.
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A foreign entity can start a retail business in Singapore by setting up a subsidiary company, representative office, or by registering as a foreign branch. However, if the entity wishes to maintain control over its Singapore retail business and gain financial advantages, the best approach is to set up a local holding company. Coordinating operations through a holding company allows an entity to consolidate and control its subsidiaries, secure assets, and potentially reduce tax liabilities, making Singapore an attractive destination for retail business expansion.
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The corporate tax rate in Singapore is 17%. This is a flat tax rate, meaning that all businesses pay the same rate regardless of their size or profits. A few exceptions exist to this rule, such as for businesses in the financial services sector.
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Yes, all retail businesses in Singapore Companies in Singapore must file an Estimated Chargeable Income (ECI) return each year, with the deadline falling on June 30 of the year following the basis period.
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A foreign entity can start a retail business in Singapore by setting up a subsidiary company, or representative office, or by registering as a foreign branch. However, if the entity wishes to maintain control over its Singapore retail business and gain financial advantages, the best approach is to set up a local holding company. Coordinating operations through a holding company allows an entity to consolidate and control its subsidiaries, secure assets, and potentially reduce tax liabilities, making Singapore an attractive destination for retail business expansion.