Home-Based Business Scheme
The Home-Based Business Scheme in Singapore is ideal for people who want to start a small-scale business from their home. Here's a quick rundown:
Eligibility:
Suitable for businesses like bakeries, hairdressing services, freelance artists, and private tuition (not more than 3 students).
Only the owner, registered occupants, or tenants (with permission from the property owner) can operate the business.
The business cannot have any non-resident employees.
The business activity cannot cause inconvenience to your neighbours or change the character of your neighbourhood from residential to commercial.
Registration:
You don't typically need a business license under this scheme.
However, there might be specific requirements depending on your business activity. For instance, home-based food businesses need to comply with the Singapore Food Agency's (SFA) regulations.
Application Process
The application process for a home-based business in Singapore depends on which scheme you qualify for:
Home-Based Business Scheme:
The beauty of this scheme is that it's designed for simplicity. Here's what you generally don't need:
Formal Application: There's usually no formal application required for the Home-Based Business Scheme.
However, there are still some important steps to take:
Register your business with ACRA (Optional): While not mandatory under this scheme, registering your business with the Accounting and Corporate Regulatory Authority (ACRA) is a good practice. It establishes your business legitimacy and simplifies future growth. You can find the registration process on the ACRA website: https://www.acra.gov.sg/
Inform HDB or URA: Regardless of registration, you should inform your housing authority, either the Housing and Development Board (HDB) or Urban Redevelopment Authority (URA), about your home-based business. This ensures you're adhering to their Home-Based Business Scheme guidelines. You can usually find contact information for your specific HDB or URA branch on their respective websites.
Permits (Optional): Depending on your business activity, you might need additional permits. For example, home-based food businesses may require a permit for selling pre-packaged cooked food. These permits are typically obtained through the relevant government agency overseeing your industry.
Home Office Scheme:
This scheme requires a formal application process:
Obtain Property Owner Consent: If you're not the owner of the residence, you'll need written permission from the property owner to run a home office business.
Apply Online: Submit an application through the e-Services portal of your housing authority (HDB or URA). The specific application form and instructions should be available on their websites.
Pay Fee: There's a one-time $20 administrative fee associated with the application.
Approval: The application process is usually quick and straightforward. Upon successful submission and payment, you should receive instant approval for the Home Office Scheme.
Remember, even though the Home-Based Business Scheme doesn't require a formal application, informing your housing authority is crucial.
Home-Based Food Businesses
Home-based food businesses are a great way to enter the Singaporean food scene if you have a passion for cooking and want to start small. There are some things to consider before you start whipping up batches of cookies or brewing pots of coffee to sell.
Requirements
The good news is that home-based food businesses in Singapore currently do not require a license from the Singapore Food Agency (SFA) since they are considered to have a low food safety risk. However, they must still adhere to some basic guidelines to ensure food safety:
All ingredients must be sourced from licensed manufacturers or suppliers. This means you cannot use ingredients from other home-based businesses or personal imports for resale.
Food preparation must follow safe and hygienic practices.
You can only sell pre-packaged food items.
Here are some additional restrictions to keep in mind:
You cannot sell food to other food establishments or at temporary fairs.
You cannot offer catering services.
The scale of your operation must be small. This means you cannot take bulk orders.
Getting Started
If you comply with the above, you can start your home-based food business by following these steps:
Register your business with the Accounting and Corporate Regulatory Authority (ACRA). This is not mandatory but is a good practice for legitimacy and future growth.
Inform your Housing and Development Board (HDB) or Urban Redevelopment Authority (URA) about your business. This ensures you are adhering to their Home-Based Business Scheme.
Obtain a Basic Food Hygiene Course Level 1 certificate. This is not mandatory but demonstrates your commitment to food safety.
Obtain necessary permits if applicable. Depending on the type of food you sell, you may need additional permits, such as a permit for selling pre-packaged cooked food.
Marketing
Once you have your business set up, you'll need to get the word out! Here are some popular ways to market your home-based food business in Singapore:
Social media: Create accounts on platforms like Instagram and Facebook to showcase your food photos and menus.
Delivery services: Partner with delivery platforms like Foodpanda or Deliveroo to reach a wider audience.
Online marketplaces: List your products on online marketplaces like Shopee or Carousell.
Word-of-mouth marketing: Encourage satisfied customers to recommend your business to their friends and family.
By following these guidelines and using creative marketing strategies, you can successfully launch and grow your home-based food business in Singapore.
General Resources:
GoBusiness Singapore provides a helpful guide to starting a home-based business, including eligibility details and the application process: [home based business eligibility singapore ON gobusiness.gov.sg]
If you're planning a home-based food business, refer to the Bestar Asia's guidelines: home based bakery business singapore
You can find contact information for HDB and URA on their respective websites:
How Bestar can Help
Bestar, a corporate services provider, can assist with various aspects of launching your home-based business, especially if you plan to go beyond the simple Home-Based Business Scheme. Here's how they can be helpful:
Understanding Licenses:
Singapore has various business licenses depending on your activity. Bestar can help identify the exact licenses you need for your home-based business. This can save you time and ensure you're operating legally.
Application Process:
For the Home Office Scheme, which requires a formal application, Bestar can likely assist with the process. This might include filling out the application, submitting it to the relevant housing authority, and following up for approval.
Compliance Advice:
Once you have the necessary licenses, Bestar can offer guidance on adhering to the terms and conditions associated with them. This can help you avoid any potential issues down the line.
Beyond Basic Needs:
If your home-based business aspires to grow beyond the limitations of the Home-Based Business Scheme, Bestar can assist with company incorporation. This would allow you to operate as a more formal business entity, potentially opening doors to future growth.
Overall Benefits:
By using Bestar's services, you can streamline the setup process for your home-based business, ensuring you have the proper licenses and navigate any regulatory hurdles. This can free up your time to focus on developing your business itself.
Contact Bestar for specific pricing details and discuss how our services can address your unique needs.
Comments