While the setup of a company is relatively easy and transparent in Singapore, prior to the commencement of business, it is important to understand the mechanism of licensing requirements for various industries. One IBC Singapore offers comprehensive assistance in navigating the Singapore company business license process, ensuring that your business meets all necessary requirements. This article outlines the steps, requirements, fees, and how to apply through the Accounting and Corporate Regulatory Authority (ACRA).
Understanding the Singapore Company Business License
A Singapore company business license is a permit issued by the relevant authorities that allows businesses to operate legally in Singapore. Not all businesses require licenses, and this again depends on the nature of the firm and the industry it covers. While some businesses may operate on mere registration from ACRA, others, like those in the lines of healthcare and education, along with food and beverage, have to obtain certain licenses before starting their operations.
Singapore Company Business License Requirements
There are 4 common industries required Singapore company business license
The Singapore company business license requirements vary depending on the type of business. Some industries are highly regulated, while others have the least minimum requirements in terms of licensing. Here are some common industries and the bodies that usually license them:
- Food & Beverage: Restaurants, cafes, and food stalls must obtain a license from the Singapore Food Agency (SFA).
- Healthcare: Clinics, pharmacies, and hospitals must be licensed by the Ministry of Health (MOH).
- Education: Institutions providing educational services must be registered with the Ministry of Education (MOE).
- Retail: Retail businesses selling products such as alcohol or tobacco need special permits from relevant authorities like the Singapore Customs.
Additionally, businesses dealing with imports and exports must register with Singapore Customs for import/export licenses. Businesses that use radio frequencies for communication may require a license from the Infocomm Media Development Authority (IMDA).
Business License Singapore ACRA
Business License Singapore ACRA is essential for every business
First, any business needs to be registered with ACRA in Singapore. The ACRA is the national regulator of business entities, public accountants, and corporate service providers. While ACRA is responsible for company registration, it is also important to note that a business license Singapore ACRA does not replace sector-specific licensing.
After registering the company, businesses need to check if their industry requires additional licenses. For example, registering a food and beverage company with ACRA will not allow the business to operate until it has secured a license from the Singapore Food Agency.
Incorporation of a business largely depends on ACRA; however, businesses have to also follow industry-specific regulations and apply for licenses to the relevant governing body.
How to Get a Business License in Singapore
A Singapore company business license involves 5 steps
The process of applying for a Singapore company business license involves several steps:
- Company Incorporation: First, it has to be incorporated with ACRA, which usually takes a day or two if all the documents are complete. Once incorporated, businesses will apply for the relevant license.
- Determine Licensing Needs: The next step is to determine whether the business requires additional licenses based on its sector. For example, a food business would need to approach the Singapore Food Agency, while a logistics company dealing with imports would need to register with Singapore Customs.
- Apply for the License: Applications for a business license Singapore ACRA or any other licensing body can typically be made online. Each licensing body comes with its application form that should be filled out with all the required supporting documents, such as proof of business registration certificates, shareholders and directors, and activities description.
- Compliance Checks: This may be preceded by compliance checks from the relevant authority where necessary and often compelled by the industry standards of the particular business premises. For example, restaurants have to undergo health and safety checks by the Singapore Food Agency before being licensed.
- License Issuance: Upon successful application and meeting all the requirements, the authority will issue the necessary Singapore company business license. The license duration varies by sector, with some requiring annual renewal.
Singapore Company Business License Fees
The cost of obtaining a Singapore company business license varies depending on the type of business and the industry it operates in. Some businesses, such as online retailers or freelancers, may not require a license, while those in regulated sectors could face fees. Here’s an overview of Singapore company business license fees:
- Food & Beverage: The license for a restaurant from the Singapore Food Agency can range from SGD 195 to SGD 660, depending on the size and type of the establishment.
- Healthcare: Fees for a license from the Ministry of Health can range from SGD 500 to SGD 3,000, depending on the healthcare facility type.
- Education: Private educational institutions can expect to pay SGD 200 to SGD 3,000 for registration with the Ministry of Education.
- Import/Export: Companies involved in import/export must pay registration fees to Singapore Customs, which range between SGD 60 and SGD 200.
It’s crucial to check the specific fees for the relevant authority that regulates the business sector. Most licenses also come with renewal fees, which must be paid on an annual basis.
Benefits of a Business License in Singapore
Obtaining a Singapore company business license provides several advantages:
- Legal Compliance: Operating with the correct licenses ensures the company is compliant with local laws, reducing the risk of penalties or business shutdowns.
- Consumer Trust: Licensed businesses in Singapore often have better reputations and gain more trust from consumers and partners.
- Expansion Opportunities: Companies with the right licenses can expand into new markets or offer additional services, as they are compliant with sector-specific regulations.
Conclusion
Obtaining a Singapore company business license is an important process for those businesses involved in certain regulated sectors. From food and beverages to healthcare, education, and import/export businesses, the granted license testifies that the business concern is operating legally and stays compliant with all sorts of related regulations. The steps involved in obtaining a Singapore Company Business License are: Registration with ACRA, determining whether your business requires sector-specific licenses or not, making the application for a license and paying the necessary fees towards the license. It is a fact that running a business within the laid-down procedures ensures smooth operations and freedom from all legal complications.
