Singapore has made a name for itself as being one of the top destinations globally for investment, mainly because of its ease of doing business and strategic location. On top of that, entrepreneurs enjoy minimal bureaucracy, skilled labor and production, favorable tax rates, and better coverage for protection of intellectual property. Setting up a business in Singapore, whether as a sole proprietorship or corporation, takes a lot of work especially if you want to start a hospitality business.

Why Start a Hospitality Business Here?

Singapore receives millions of tourists every year, from backpackers to families to high-end consumers. It makes sense to start a business in the hospitality industry here, regardless of its size, because of the amount of customers you could potentially get. Think of it as one big convention center here in Southeast Asia.

How Do You Start a Business In Singapore?

Register the Business

The business owner needs to register as a Singapore firm, a sole proprietor, or a limited liability partnership with ACRA or Accounting and Corporate Regulatory Authority. You can refer to our detailed guide on Singapore Company Registration.

You need to seek name approval and SSIC Code by applying online with a relevant SingPass on the Bizfile website. Your chosen business name will need to meet the required standards.

Besides the above requirements, you should take care not to infringe trademarks. You can avoid this by searching for existing trademarks at the Intellectual Property Office of Singapore (IPOS) by providing the SSIC code. Once the SSIC code is obtained, you need to submit it to the Council of Estate Agencies (CEA).

Legal Compliance Details And Licenses

Singapore's bureaucracy in terms of obtaining legal documents isn't that much of a hindrance. There are some important licenses and legal compliance details that you need to fulfill in order to start your business.

Approval of business premises

Before you think about investing money in your business, you need to find an ideal location. Once you find a location, you'll need the approval of your premises from the Urban Redevelopment Authority of Singapore with your proposed location of the premises.

Apply for a Food and Health License

Any business owner in Singapore will need to apply for a food and health license that will allow them to sell food and operate equipment that would also produce food products. In Singapore, all food operators need to attend a Food Hygiene Course after they receive the accreditation from the appropriate authority.

Clearance from National Environment Agency

Singapore will also require you to acquire clearance from the National Environment Agency for your new business. Singapore is known for being one of the role models for sustainable, clean, and green environment. The National Environment Agency is tasked to help maintain public health, fight pollution, and provide meteorological information.

Approval from Building Construction Authority

The Building Construction Agency is a Singaporean government agency that's tasked with making sure that buildings meet the highest standards possible to ensure the safety of the tenants inside.

The Building Maintenance and Strata Management Act or BMSMA helps ensures buildings are maintained properly by providing a framework for homeowners to manage strata properties and building owners.

Apart from buildings, the BCA helps regulates excavation works, the safety of business structures such as lifts, escalators, elevators, advertisement signs, and other exterior features.

Who Are the Important Partners?

Singapore likes to take care of its business owners by providing generous grants and other incentives that will motivate them to grow and expand their company on the island.

Here are a few public portals that will point you to the organizations and government partners who're willing to work with you.

Singapore Tourism Board

The Singapore Tourism Board is a Singapore government agency willing to help investors in the hospitality industry to develop their companies. They aim to champion the country's tourism and to ensure that hospitality investors get as many clients as possible.

Infocomm Media Development Agency

As an investor or a business owner, you'll need to work with local media agencies for your promotional and marketing activities. This agency is also motivated to turn Singapore into a global media city to foster a connected society and creative economy.

Enterprise Singapore Portal

This is a website that allows investors from different industries to learn how to start and sustain their businesses. They also contain relevant links and guides that are linked to the different issues of the country. They are eager to work with companies to help them become more capable of providing quality products and services as well as instilling the concept of innovation.

Closing

Singapore provides you with the best location to set up a hospitality business. Its geographical location, the low bureaucracy, and the availability of skilled workers make it worth it to invest in their industry than any other country in Southeast Asia.

Prior to setting up a business in Singapore, you need to work with a professional team to help you transition into the country with ease.

Frequently Asked Questions

Starting a hospitality business in Singapore involves several steps. Firstly, you must develop a business plan which includes your business model, target market, and a competitive analysis. Secondly, acquire the necessary capital for your business. You could consider sources such as personal savings, bank loans, angel investors, or even venture capitalists.
Next, secure a suitable location for your business. Whether it's a hotel or a restaurant, the location will greatly influence your success.
Following this, you will need to register your business with the Accounting and Corporate Regulatory Authority (ACRA).
When registering, remember to check the various business structures, as each comes with different tax considerations and regulatory requirements. You may also need to seek advice about the inner workings of the IRAS Investment Holding Company and how it might impact your tax obligations.
After registering, apply for the necessary licenses and permits. With this done, you can finally start hiring employees and marketing your business. Remember, persistence and adaptability are key when starting a hospitality business in Singapore.

How to Start a Hospitality Business in Singapore - 2024 Update