If you’re a business owner in Singapore, you might have come across Employers Liability Insurance, and Workers Compensation Insurance (also known as Work Injury Compensation Insurance, or WICA Insurance). These two types of insurance policies are related, but Workers Compensation Insurance offers vastly superior coverage compared to Employers Liability Insurance, without any significant difference in premiums.
In this article, we’ll cover the following points:
5 key differences between Workers Compensation Insurance vs Employers Liability Insurance
Which policy should I get?
Why is it important to insure my business against workers’ injuries?
Where can I buy a Workers Compensation Policy?
Comparison between Workers Compensation Insurance vs Employers Liability Insurance:
Difference No.
Coverage
Workers Compensation
Employers Liability
1
Employer’s Liability under Common Law
Covered Standard policies will typically provide $10 million annual coverage
Covered Standard policies will typically provide $10 million annual coverage
2
Medical Expenses Due to Work-Related Injury/Disease
Covered
Not Covered
3
Lost Wages While on Medical leave Due to Work-related injury/disease
Covered
Not Covered
4
Compensation for Work-Related Permanent Disability
Covered
Not Covered
5
Compensation for Work-Related Death
Covered
Not Covered
Let’s illustrate the differences between these two insurance policies with a couple of examples.
Example 1: Say you run a construction company. One of your general workers accidentally suffers an arm fracture while operating heavy machinery. Your injured worker visits the A&E department to get his injury treated. Doctors determine surgery is necessary. The A&E consultation costs $150, and the surgery stitching costs $7,000. Your worker is prescribed a series of medications and rehabilitation sessions by the doctor, which costs $1,000. Your worker is provided with 2 months of medical leave. If we assume your employee earns a monthly salary of $1,000, then you’re liable to compensate your worker for $2,000 in lost wages ($1,000 per month, times two).
Here’s a handy table to summarise what costs Workers Compensation and Employers Liability would pay for, in this instance:
Work Injury Expenses
Workers Compensation
Employers Liability
A&E Doctor’s Consultation Costs: $150
Covered
Not Covered
Wound Stitching Costs: $100
Covered
Not Covered
Medication Costs: $50
Covered
Not Covered
Lost Wages for 7 Days of Medical Leave: $750
Covered
Not Covered
Total Costs: $1,050
$1,050 Covered
$0 Covered
Workers Compensation Insurance would pay for all the costs stated in this illustration. However, Employers Liability Insurance would not pay for any of the costs incurred. If you only had an Employers Liability policy, you would have to pay $10,050 out of your own pocket. If you didn’t compensate your injured worker for these work-related injury expenses, they could simply file a report with MOM. It is a criminal offence to withhold compensation for work-related injuries/diseases, and penalties include up to 1 year in jail, and/or up to a $10,000 fine.
Let’s move now to our second illustration.
Example 2: You run a construction company. One of your general workers was putting together scaffolding. Your worker accidentally falls from the scaffolding. Your safety harness, which the worker is wearing, has not been properly maintained, and breaks. Your worker plunges 10 metres to the ground below, and ends up permanently paralysed. Your injured worker sues you in court, alleging that you were negligent as an employer in ensuring that all equipment was properly maintained, and that you failed to provide a sufficiently safe work environment. The Courts side with the worker, and award damages of $300,000. Here’s a handy table to summarise what costs Workers Compensation and Employers Liability would pay for, in this example:
Costs
Workers Compensation
Employers Liability
Damages Awarded by the Courts, under Common Law Liability: $300,000
Covered
Covered
Total Costs: $300,000
$300,000 Covered
$300,000 Covered
Both Workers Compensation Insurance and Employers Liability Insurance cover common law liabilities. In this example, either policy would protect you from the massive $300,000 costs that you’re liable to pay.
Which Policy Should I Get?
In the examples above, you can see that medical costs are covered only by a Workers Compensation policy. Common law liabilities are covered by both policies.
Viewed this way, Workers Compensation Insurance is essentially just a broader version of Employers Liability Insurance. The premium differences between Workers Compensation and Employers Liability Insurance are insignificant, so it’s best to carry Work Injury Compensation Insurance.
The vast majority of businesses will purchase Workers Compensation over Employers Liability Insurance. Carrying only Employers Liability Insurance is not a common practice. Given the very narrow coverage it provides, this is not a recommended way to protect your business against employment-related liabilities.
Why Is It Important to Insure My Business Against Workers’ Injuries?
In 2021, 22,186 workers suffered work-related injuries in Singapore. Of this large pool of workers, 610 workers suffered major injuries, such as amputations of their limbs. 37 workers tragically lost their lives. Work-related injuries are common. If your employee gets injured due to work, you have to compensate them, and those compensation costs could potentially run into the tens (or hundreds!) of thousands. Such heavy costs could severely impact your business’ financial health. If your employee were to suffer a severe work-related injury, and the resulting compensation ran into the hundreds of thousands, your business could even go bankrupt.
Premiums for Workers Compensation Insurance are very affordable. It’s therefore vital to exchange a relatively small annual premium, in exchange for significant protection against your legal liabilities if one of your workers gets injured, or contracts a disease, due to work.
Looking to save on your business broadband plan? We’ve written this guide breaking down the 5 absolute cheapest business broadband plans that you can find in Singapore.
Summary:
Cheapest business broadband comparison table
ViewQwest overview
SPTel overview
M1 overview
Starhub overview
Singtel overview
1. Cheapest business broadband comparison
We’ve drawn up a table compiling the most affordable business broadband services across Singapore. These tables are organised by price, with the cheapest plan at the top.
Business Broadband Plans in Singapore
Broadband Provider
499 MBPS and under plan
500 MBPS plan
1 GBPS plan
Notes
ViewQwest
$96/mth (300MBPS)
$106/mth
$149/mth
24/36 month contract
Free router
Free modem
SPTel
–
$113/mth
$163/mth
12 month contract
1 static IP
Free DDOS attack detection
Free AX5400 router
M1
$99/mth
(300MBPS)
$148/mth
$168/mth, 24 mth or longer contract
12/24/36 mth contracts; installation fees waived for 24/36 mth contracts
Free router
Free WIFI mesh system
Starhub
$168/mth for 12 mth contract (350MBPS)
$166/mth for 24 mth contract (350MBPS)
$98/mth for 36 mth contract (350MBPS)
$248/mth for 12 mth contract
$130/mth for 24 mth contract
$125/mth for 36 mth contract
$398/mth for 12 mth contract
$234/mth for 24 mth contract
$224/mth for 36 mth contract
12/24/36 month contract
Free router
Free broadband firewall
Singtel
–
$208/mth
$358/mth
24/36 month contract
Free router
500MBPS plan comes with free Nespresso machine + Robot vacuum cleaner (worth $539)
1GBPS plan comes with free Asus Vivobook laptop + Robot vacuum cleaner (worth $1,287)
Cheapest business broadband: ViewQwest
ViewQwest offers the lowest priced business broadband plans in Singapore.
Their cheapest plan has the same 300MBPS speed as their next closest competitor, M1, but is $3/month cheaper. Their 500MBPs and 1GBPS plans are also cheaper than any other provider in this list. These prices are for 24 or 36-month contracts.
Most flexible business broadband plans: ViewQwest, SPTel, M1, and Starhub
No-contract option: ViewQwest
Of the 5 broadband providers in this list, only ViewQwest offers a no-contract option. This only applies for ViewQwest’s plans.
However, be aware that ViewQwest’s no-contract plans are priced significantly higher than their contracted plans. For instance, a no-contract 300MBPS plan is $330/month, whereas a 24-month contract 300MBPS plan is only $106/month. That’s almost a 70% price difference!
It might be best to just use their no-contract plans to test out ViewQwest’s service standards, before committing to a 24 or 36-month contract to save the most money.
Shortest contract options (12 months): SPTel, M1, and Starhub
There are 3 business broadband providers that offer 12-month contracts: SPTel, M1 and Starhub. These are ranked in order of affordability, with SPTel being the cheapest, and Starhub costing the most.
Some customers don’t like being tied up with a provider for multiple years. Sometimes, your needs expand beyond what the broadband provider is able to deliver, and you need to find a more competent vendor. Other times, the customer service and overall experience are just so bad that all you want to do is switch. If that sounds like you, then these providers who offer short contracts will give you the flexibility to shop around when your plan is up for renewal.
ViewQwest offers the lowest priced business broadband plans in Singapore. Their cheapest plan has the same 300MBPS speed as their next closest competitor, M1, but is $3/month cheaper. Their 500MBPs and 1GBPS plans are also cheaper than any other provider in this list. These prices are for 24 or 36-month contracts.
ViewQwest also has no-contract options. However, these no-contract plans are significantly pricier. For instance, a no-contract 300MBPS plan will cost $330/month, which is more than 3x the price of the 24 or 36-month contract option.
ViewQwest has a 99.5% SLA (Service Level Agreement). This means that you could experience up to 216 minutes of downtime per month. This is lower than M1’, as business broadband providers typically provide 99.9% SLA or higher. If you’re running a business where very low levels of downtime is mission-critical (e.g. you’re running a web hosting business, or you provide SaaS services and can’t afford to be offline), then you may want to consider alternative providers. However, if you’re running a business where a few hours of downtime per month is acceptable to you, then ViewQwest’s prices are hard to beat.
ViewQwest’s plans come with a free Linksys E7350 router (worth $185), and free modem. They will also waive one-time installation fees, which ordinarily are $250.
SPTel is a joint venture between ST Engineering and SP Power Group.
SPTel’s plans are the 2nd cheapest in this list. Their 500MBPS and 1GBPS plans are only a few dollars more than competing plans from ViewQwest.
SPTel does offer 12-month contracts, but these 12-month plans come with a very high $802.50 one-time set-up fee. This would make the total cost much more expensive than almost all the other plans in this list. If you’re signing up with SPTel, it’s probably better to go with their longer-dated contracts.
If you sign a 24 or 36-month contract, you’ll have the $802.50 one-time fee waived. You’ll also get a free TP-Link AX5400 router (worth almost $500). This is a high-end router that can support up to 80 connected devices at the same time. You’ll also get free DDOS attack detection.
M1’s plans are the 3rd cheapest in this list. Their 500MBPS and 1GBPS plans are only a few dollars more than competing plans from ViewQwest.
M1 also offers 12-month contracts for its 300MBPS and 500MBPS plans. If you take up M1’s 12-month plans, there is a one-time set-up fee of $321. M1’s 24 and 36-month contracts will have this $321 set-up fee waived.
M1 advertises a 99.95% SLA, which is equivalent to about 21 minutes of monthly downtime. For the prices M1 is charging, 99.95% SLA is not too shabby.
All of M1’s plans come with a free router and router set-up, valued at $449.
Starhub’s plans are the 4th cheapest in this list. One plus point about Starhub is that they offer contracts as short as 12-months, so that you’re not tied down for excessively long periods of time. If you find you’d be happier with a different broadband provider, you can switch out after 1-year, instead of having to wait for 2 or even 3 years.
All of Starhub’s contracts come with a waiver of their one-time set-up fee, which ordinarily is $856. You’ll also get a free TP-Link Deco X20 router (worth $149). If you sign up online for their 24 or 36-month contracts, Starhub will also offer you up to $200 in shopping vouchers.
Singtel’s plans are the highest-priced in this list – their brand name likely carries a premium.
Singtel’s 500MBPS and 700MBPS plans come with a Nespresso capsule coffee machine, and free robot vacuum cleaner (worth over $500). These are two very useful items to have in the office. Their 1GBPS plan comes with a free Asus Vivobook laptop and robot vacuum cleaner, worth over $1,200.
Singtel’s shortest contracts are 24 months long. Unlike ViewQwest, M1 and Starhub, Singtel does not offer plans slower than 500MBPs.
Protect your business from cyber attacks now
After you’ve set up your business broadband, you should turn your focus towards protecting your company against cyber threats. All sorts of malware, phishing scams and other harmful material exists that could compromise your operations. You could suffer significant business losses if you don’t have proper Cyber Insurance. Cyber Insurance can cover the cost of restoring your IT systems after a breach, along with covering legal liability costs to third-parties if sensitive information is leaked.
Get up to $2 million Cyber Insurance online:
Protect your business from a whole host of other risks
Provide offers the most affordable and comprehensive business insurance plans in Singapore. Click the links below to get insured online, in just 3 mins!
Are you looking to import food into Singapore for your business? There are several important regulations that you have to follow to legally bring food into the country. We’ve written this step-by-step guide to explain these regulations, and how you can have your foreign food products brought in.
Summary of how to import food into Singapore:
Check your food products’ import classification
Apply for Trader’s license
Apply for customs permit
Comply with relevant food import regulations
Protect your business from food poisoning liability
Step 1: Check your food products’ import classification before importing
The Singapore Food Agency (SFA) is responsible for regulating food imports.
SFA maintains an import classification system, which classifies different food products into individual categories. Each category of food products will have specific import regulations that you have to adhere to.
Here is the list of import classifications:
SFA Food Products Import Classification
Food Category
Description
Examples
Meat
Whole carcasses, or parts of any animal, whether chilled, frozen, processed or in canned form and contains more than 5% of meat content
Chicken
Pork
Beef
Lamb
Venison
Luncheon Meat
Meat Sausages
Cured Meats like Ham, Bacon, etc.
Fish
Fishes, crustacean, molluscs, sponges, marine invertebrates and any other forms of aquatic life
Seabass
Salmon
Prawns
Scallops
Oysters
Lobsters
Geoduck
Sea Cucumber
Fresh Fruits and Vegetables
Raw and unprocessed fruits and vegetables.
Fruits and vegetables which have been processed, such as by cutting, peeling, canning and freezing are classified as Processed Food.
Whole garlic bulbs
Whole lettuce heads
Whole tomatoes
Whole pineapple
Whole thyme stalks
Fresh Eggs
Table eggs from hens, ducks, quail
Processed Eggs
Salted and preserved eggs, liquid eggs, powdered eggs, cooked eggs
Processed Food
All other food products and food supplements not grouped under the above categories
Rice
Bread
Biscuits
Jams and Spreads
Cheese
Pre-Diced Garlic
Pre-Shredded Lettuce
Pre-Sliced Tomatoes
Pre-Sliced Pineapple
Dried Herb Flakes
Dried Raisins
Frozen Fruits & Vegetables
Canned Fruits & Vegetables
Instant Noodles
Coffee
Tea
Soft Drinks
Cow Milk, Oat Milk, Soy Milk
Incorporate your company, if you haven’t already done so
Before you can apply for a Trader’s License (basically, the license you need to import food into Singapore), you must have a company.
If you don’t already have a company, don’t worry. It’s an easy and quick process to start a company in Singapore. You can start a Private Limited, Sole Proprietorship, Partnership, etc. It is, however, recommended that you start a Private Limited. This is because Private Limiteds provide more liability protection compared to Sole Proprietorships and Partnerships.
One of the easiest ways to start a company is to engage the services of an online incorporation company. These online incorporation companies typically have incorporation packages starting from only $350, and incorporation can be done within 1 day (assuming you have all the required information on hand).
Now that you’ve got your company set up, you’ll have to apply for a Trader’s License from SFA. A Trader’s License is basically a license to import food. There are different types of Trader’s Licenses depending on the specific food products you wish to import. Some types of food, like eggs, do not require a Trader’s License. We’ve constructed a table detailing this below.
Summary of Trader’s Licenses to Import Food into Singapore
Food You Want To Import
Trader’s License Name
Cost
Meat and fish
Licence for Import/Export/Transshipment of Meat and Fish Products
$84/year
Fresh fruit and vegetables
Licence for Import/Transshipment of Fresh Fruits and Vegetables
$378/year
Preserved/liquid/processed eggs
Processed food
Food appliances
Registration to Import Processed Food Products and Food Appliances
Free
Fresh eggs
Licence to Import Table Eggs
Free
Example: Let’s say you want to import meat, fish, and fresh fruit and vegetables. You would have to apply for 2 licenses:
Licence for Import/Export/Transshipment of Meat and Fish Products
Licence for Import/Transshipment of Fresh Fruits and Vegetables
How do I apply for a Trader’s Licence?
Select the relevant license from the GoBusiness portal, and complete the online application
Pay relevant fees
Note: You must have a bank account that can make GIRO payments. SFA will use GIRO to deduct Trader’s License fees.
Step 3: Apply for customs permit
After you’ve applied for the relevant Trader’s Licence, you’ll have to apply for a customs permit. You must have a customs permit for each food shipment coming into Singapore.
You can get your customs permit online, via the TradeNet system. TradeNet is a government platform for businesses to declare their imports/trade activities.
Customs permit cost
Each customs permit typically costs $2.88.
Information required when applying for customs permit
For every customs permit you request, you must provide the following key details:
Establishment Code for the country you’re importing the goods from (e.g. The USA has an Establishment Code of US99999). Here’s the full list of Establishment Codes.
Product Code for the specific products you’re importing (e.g. Nutmeg has a product code of HFQØNM). Here’s the full list of Product Codes.
After your import permit is approved by both Singapore Customs and the SFA, you will receive a Cargo Clearance Permit (CCP). This allows your goods to pass into Singapore.
Importing produce protected by CITES
The Convention on International Trade in Endangered Species of Wild Fauna (CITES) regulates the export/import of certain food products from endangered species. For instance, seahorses, which can be popular for certain cuisines/medicinal uses, are protected under CITES. If you wish to import seahorses or other CITES-protected products, you must:
Obtain a CITES export permit from the country where you’re importing from
Obtain SFA approval to import the product into Singapore
Food import fees
You will have to pay an import fee for each food shipment you make. Import fees are deducted from the GIRO account.
Import Fees for Food Products arriving in Singapore
Food Category
Fee
Meat (chilled/frozen/processed)
$4.60 per 100 kg
Meat (canned)
$77 per shipment
Fish
$3 per shipment
Fresh fruits and vegetables
$3 per shipment
Table eggs
$62 per shipment
Processed eggs (preserved/salted/liquid/etc.)
$62 per shipment
Other processed egg products
$22 per shipment
Other processed food
No fees
Step 4: Comply with the food import regulations
You must comply with food importation laws in Singapore. The specific law governing this is the Sale of Food Act. This Act ensures that imported food is fit for consumption by people in Singapore.
Meat and Fish: Wholesome Meat and Fish Act
Meat Import Regulations
Here’s a handy summarised checklist of the key requirements when importing meat:
Requirement No.
Regulation Summary
1
Only import meat from a list of SFA-approved sources. List here.
2
Meat must meet (no pun intended) SFA’s veterinary criteria.
Meat must come from animals slaughtered within certain time frame.
4
Meat must carry health certificate from exporting country.
Meat to be imported only from SFA-approved sources
You can only import meat products from a list of SFA-approved sources. Different countries have different meat products that are either allowed, or not allowed, to be imported into Singapore. SFA’s list of approved vendors covers about 40 countries around the world.
For instance, there are over 80 approved vendors in Australia that you can import meat from. You can import beef, mutton, pork, and poultry from Australia. On the other hand, there is only 1 approved vendor in Indonesia that you can import meat from. You can also only import frog legs from this 1 approved Indonesian vendor.
Meat to meet SFA’s veterinary requirements
Meat products must meet SFA’s veterinary criteria. This means the meat must not contain diseases or chemical preservatives, among other requirements.
There are different specific veterinary standards for different meat products. For instance, poultry must be imported from a country that has been free from Avian flu for the last 12 months. Pork must not have come from animals fed on swill, which can impart dangerous parasites into the meat.
Meat that is too old cannot be imported into Singapore. Here are time limits for different meat types:
Time Limit for Meat Imports into Singapore
Meat Type
Time from Slaughter
Import Rule
Frozen pork
>6 months from date of slaughter
Cannot import
3-6 months from date of slaughter
OK to import, but must undergo lab testing in Singapore before you can sell it
<3 months from date of slaughter
OK to import, may be selected for random testing by SFA
Frozen Beef/Mutton/Poultry
>12 months from date of slaughter
Cannot import
6-12 months from date of slaughter
OK to import, but must undergo lab testing in Singapore before you can sell it
<6 months from date of slaughter
OK to import, may be selected for random testing by SFA
Meat Imports Must Carry Health Certificate
You must obtain a health certificate from the relevant authority of the country that you’re exporting from. For instance, if you’re exporting meat from Brazil, you’ll need a health certificate from the Brazilian authorities.
Fish and fish products import regulations
Here’s a handy summarised checklist of the key requirements when importing fish and fish products:
Requirement No.
Regulation Summary
1
Live oysters can only be imported from SFA-approved list of countries (see point 1 below)
2
Certain types of fish products are banned from imports (see point 2 below)
3
Fish and fish products must carry health certificate from exporting country
Fish and fish products are usually subject to lighter import regulations compared to meat.
However, some fish and fish products which carry higher-risk for foodborne illnesses must meet additional importation criteria.
Live oysters can only be imported from specific countries
These countries are:
Australia
Canada
France
Ireland
Japan
Netherlands
New Zealand
UK
USA
No importing certain restricted fish products
It’s illegal to import chilled crab meat, chilled shucked raw oysters, chilled cockle meat and chilled cooked prawns/shrimps.
Fish and Fish Product imports must carry health certificate
Each consignment of live oysters, frozen oysters, frozen blood cockle meat, frozen cooked prawns and frozen raw/cooked crab meat must be accompanied by a health certificate issued by the relevant authority of the exporting country.
Fresh fruits and vegetables: Control of Plants Act
Here’s a handy summarised checklist of the key requirements when fresh fruits and vegetables:
Requirement No.
Regulation Summary
1
Ensure all fruits and vegetables don’t contain harmful organisms/substances (except for pesticides) harmful to people
2
Ensure the container for the shipped fresh fruits and vegetables is clean
3
Ensure shipment containers are properly labelled with name of producer, address of producer, and name(s) of fresh fruits and vegetables inside
Ensure all fruits and vegetables don’t contain harmful organisms/substances (except for pesticides and toxic chemical residue)
SFA has set limits on pesticides and toxic chemical residue for fresh fruits and vegetables. You must ensure that your imported produce does not exceed these limits.
Ensure the container for the shipped fresh fruits and vegetables is clean
The container you use to ship your produce must be clean and fit for storing fresh produce.
Ensure shipment containers are properly labelled
All shipment containers must be labelled with:
Name of producer of fresh fruits and vegetables (e.g. New York Food LLC)
Address of producer of fresh fruits and vegetables (e.g. 81st Street, 5th Avenue, NY, USA)
Name(s) of fresh fruits and vegetables inside the shipment (Tomatoes, garlic, etc.)
Fresh eggs: Animal and Birds Act
Requirement No.
Regulation Summary
1
Fresh eggs must be imported from SFA-approved list of farms, from specific countries only
2
Each shipment of eggs must come from one farm only
3
Eggs must carry veterinary certificate from exporting country
4
Importer must notify SFA of arrival of each egg shipment
5
Eggs to undergo inspection upon arrival
Fresh eggs can only be imported from specific farms, in specific countries
The permitted countries are:
Australia
Japan
Malaysia
New Zealand
Sweden
Korea
Thailand
USA
Each shipment of eggs must come from one farm only
If you are importing eggs from multiple farms, split them into different shipments.
Eggs must carry veterinary certificate from exporting country
The veterinary certificate for the eggs must certify the following:
(i) Highly pathogenic avian influenza (HPAI) and H5 and H7 low pathogenicity avian influenza (LPAI) are notifiable diseases in the country of export
(ii) the country has been free from highly pathogenic avian influenza (HPAI) for the past 3 months before the eggs were exported
(iii) the country has been free from low pathogenicity avian influenza (LPAI) of the H5 and H7 subtypes for the past 3 months before the eggs were exported
(iv) the eggs are unfertilized and come from layer flocks kept in a form approved by SFA for egg imports
(v) the farm where the eggs originate has been tested and is free from Salmonella Enteritidis, and no case of velogenic Newcastle disease, Infectious bronchitis, Infectious laryngotracheitis, Avian encephalomyelitis, Infectious bursal disease, EDS ’76 or chronic respiratory disease due to Mycoplasma gallisepticum or M.synoviae, Salmonellosis (including Salm. pullorum), duck virus enteritis or duck viral hepatitis has been diagnosed on the farm for the past 3 months before the eggs were exported
(vi) the eggs are clean, fresh and fit for human consumption, and packed into new disposable boxes for export.
Importer must book egg inspection appointment for each shipment
Before your eggs arrive, you must book an egg inspection slot online, via AVA’s Intelligent Food Approval & Safety Tracking System (iFAST) at https://ifast.sfa.gov.sg/eserviceweb/.
You will require your SFA Import licence number & flight details for your egg imports to make the online booking.
If you do not make a prior booking appointment, SFA will charge you $80/hour for the inspection when your eggs arrive.
Eggs to undergo inspection upon arrival
When the eggs land in Singapore, you will have to present the necessary documents to an authorised officer. Key documents include your Customs Clearance Permit (CCP), plus your Veterinary Health Certificate (from step 3 above).
The officer will inspect your eggs. Inspection may include testing a sample of your eggs for their Haugh Units. A Haugh Unit tests the quality of eggs by measuring the height of the egg white. Your eggs must have at least 60 Haugh Units to pass the inspection. If the eggs pass the inspection, and your documents are prepared properly, the officer will release the eggs to you.
SFA can order a further bacteriological examination of your eggs before releasing them to you. Also, samples of eggs may be taken for lab testing to ensure food safety.
Do I need to send my food imports for laboratory tests?
No, unless you’re importing high-risk food products. Examples of high-risk products include frozen blood cockle, or frozen prawns.
Otherwise, you ordinarily don’t have to send your food imports for lab tests. Although you don’t have to lab test your imports, you still must abide by food safety regulations. SFA maintains a lengthy list of contaminant limits for food imports. You will have to ensure that your food does not contain contaminants that exceed the permitted levels. Here’s the full list of SFA food contaminants.
Here’s an example of one such contaminant limit, for inorganic arsenic:
Contaminant
Food
Maximum Limits
Regulation/
Schedule No.
Inorganic Arsenic
Seaweed
2 ppm
Regulation 31
Polished rice
0.2 ppm
Husked rice
0.35 ppm
Fish
2ppm
Refer to SFA circular dated 17 Mar 2020, (Maximum Limits for Marine Biotoxins, Inorganic Arsenic, and Methanol in Food)
Crustaceans
2ppm
Molluscs
1ppm
Step 4: Clear food inspections
Some types of food products, such as fresh eggs, and certain kinds of meat/fish products (e.g. oysters) must be inspected when they arrive in Singapore. SFA can also conduct random inspections on other imported food.
When you get your Customs Clearance Permit (CCP), you’ll receive a message stating whether your shipment requires inspection by SFA before being released to you. If your shipment needs to be inspected, here are the steps:
If SFA needs to inspect your food shipment, it’s best that you make an online booking through the SFA’s Inspection & Laboratory e-Services.
The SFA inspector will request the following documents during the inspection, so make sure you have them ready:
Your Cargo Clearance Permit,
Any relevant documents, e.g. invoices and health certificates,
The shipment of food to be inspected. For frozen raw meat, 1 carton is to be surface thawed before the inspection.
Shipments that do not meet SFA’s requirements cannot be sold in Singapore. If you’re in a thin-margin industry like food wholesaling, this can affect your company’s financial performance substantively. Make sure you adhere to SFA’s requirements so that you’re not left with dead stock that you can’t sell!
What are the penalties for illegally importing food into Singapore?
It is a criminal offence to illegally import food into Singapore.
Penalties include:
First offence: Fine up to $5,000.
Second offence onwards: Fine up to $10,000, and/or jail of up to to 3 months.
Step 5: Protect your company from food poisoning liability, and damage to food shipments
Your customers might get sick from the imported food that you’ve sold them. These customers can easily sue you for any sickness they develop from eating your food. If you wholesale your food to other food establishments, these food establishments can also hold you liable for supplying them with faulty produce.
Also, you should protect your food shipments while they’re in transit to you. Marine Cargo Insurance can protect your food shipments from damage or loss while they’re transported to you.
Singapore is known as one of the world’s easiest places to start and run your own business. An important part of our business-friendly environment are tax exemptions, particularly for new companies. When you start a new company in Singapore, you can be exempted from paying corporate tax for your first $200,000 in chargeable income, for the first 3 years of your company’s operations. The maximum amount you could potentially save is up to $63,750 in total, over 3 years. If you’d like to make full use of this scheme, read on!
In this guide, we’ll explain 12 key facts about claiming Start Up Tax Exemption in Singapore:
What is the Start Up Tax Exemption Scheme?
How does the Start Up Tax Exemption Scheme work?
How do Years of Assessment work?
How much tax exemption can I get?
What companies qualify for Start Up Tax Exemption?
Do companies limited by guarantee qualify for tax exemption?
How do I claim my Start Up Tax Exemption?
Can I extend my Start Up Tax Exemption Scheme beyond 3 years?
What are the penalties for abusing the tax exemption scheme?
How do I protect my newly set-up business?
#1. What is the Start-Up Tax Exemption (SUTE) Scheme?
The Start-Up Tax Exemption (SUTE) scheme allows new companies to enjoy corporate tax reliefs, up to a certain limit, for the first 3 years after the company is set up. You will enjoy tax relief on the first $200,000 of chargeable income.
This scheme was introduced in 2005 by the Inland Revenue Authority of Singapore (IRAS). The purpose of this scheme is to incentivise entrepreneurs to start new ventures and grow the local economy.
#2. How does the Start-Up Tax Exemption Scheme work?
Companies can claim tax exemption for their first 3 Years of Assessment (YA). A Year of Assessment is the year in which corporate tax is calculated and paid (i.e. the year after a company’s financial year).
Unclaimed tax exemptions cannot be carried forward. For instance, if your company did not make any profit for its first 3 Years of Assessment, you cannot carry forward unclaimed tax exemptions into your 4th Year of Assessment and beyond.
#3. How do Years of Assessment work?
A Year of Assessment depends on the date which you choose as your company’s financial year end.
Example 1:
Date of financial year end: 31st March 2022
Year of Assessment: 1st April 2021 to 31st March 2022
Example 2:
Date of financial year end: 31st December 2022
Year of Assessment: 1st Jan 2022 to 31st December 2022
#4. How much tax exemption can I get under the Start Up Tax Exemption scheme?
Under this scheme, new companies will receive:
75% tax exemption on their $100,000 of normal chargeable income
50% exemption on their next $100,000 of normal chargeable income
Tax payable with SUTE
Tax payable without SUTE
Tax on first $100,000 of chargeable income
$4,250
$17,000
Tax on next $100,000 of chargeable income
$8,500
$17,000
Total tax payable
$12,750
$34,000
Tax savings with SUTE
62.5%
With the SUTE, you’ll save almost 2/3 in taxes payable! Those are some significant savings in tax burdens, and should serve as a great incentive to pursue the entrepreneurial route.
If you have $200,000 or more in chargeable income, the Start Up Tax Exemption scheme would save you $21,250 per year in taxes ($34,000 – $12,750). If you have $200,000 or more in chargeable income across 3 years, you would save a total of $63,750 in taxes!
#5. What companies qualify for Start Up Tax Exemption?
The Start-Up Tax Exemption Scheme is open to all newly-incorporated companies that:
Were incorporated in Singapore;
Were a tax resident in Singapore for that YA; and
Have no more than 20 shareholders beneficially holding the company’s total share capital. Furthermore, either all the shareholders must be individuals, or at least 1 shareholder must be an individual holding at least 10% of the company’s issued ordinary shares.
The following companies do not qualify for Start Up Tax Exemption:
A company whose principal activities are that of investment holdings, or
A company which undertakes property development for sale, for investment, or for both investment and sale
Investment holding companies This is because investment holding companies generally only earn passive income (e.g. dividend and investment income), while property developers typically incorporate a new company for each new property development.
This doesn’t mean that new investment holding companies or property development companies don’t qualify for tax exemption at all. Such companies will qualify instead for Partial Tax Exemption (PTE), which still offers great tax exemption benefits – just not as generous as those found under the SUTE scheme. We’ll provide an overview of the PTE scheme later in this article.
#6. When is a company considered a Singapore tax resident?
If a company’s its control and management was exercised in Singapore for the previous Year of Assessment, then the company would be considered tax-resident in Singapore.
Control and management refers to the making of strategic corporate decisions. For instance, if management is based in Singapore, or if board meetings are held in Singapore, then the company would be considered a Singapore tax resident.
#7. Do companies limited by guarantee/non-profits qualify for tax exemption?
Yes. Companies limited by guarantee can claim tax exemption under this scheme. Companies limited by guarantee are commonly formed by non-profit groups like charities, trade associations, etc.
There are 2 conditions to claim tax exemption:
All members are only individuals, with no corporate members. This applies throughout the company’s Year of Assessment in which tax exemption is being claimed.
At least 1 of its members is an individual who has contributed at least 10% of the total contributions of the members of the company throughout the company’s Year of Assessment.
#8. How do I claim my Start-Up Tax Exemption?
You don’t have to fill in any special forms to claim the Start Up Tax Exemption. All you need to do is simply file your annual corporate tax return, as you normally would. IRAS will automatically calculate the amount of tax exemption you’re entitled to. It’s a straightforward process.
#9. Can I extend my Start Up Tax Exemption beyond 3 years?
No. There is no extension of the Start Up Tax Exemption beyond the 3rd Year of Assessment. However, all companies will enjoy Partial Tax Exemption (PTE) after their 3rd Year of Assessment. PTE is another tax exemption scheme that reduces corporate taxes payable, subject to certain conditions. This is designed to recognise the economic contributions of SMEs, and to promote entrepreneurship.
#10. What is the tax exemption amount under the Partial Tax Exemption (PTE)?
Under the Partial Tax Exemption scheme, companies can claim:
75% tax exemption on the first $10,000 of normal chargeable income, and
50% exemption on the next $190,000 of normal chargeable income
Tax payable with PTE
Tax payable without PTE
Tax on first $10,000 of chargeable income
$425
$1,700
Tax on next $190,000 of chargeable income
$16,150
$32,300
Total tax payable
$16,575
$34,000
Tax savings with PTE
51.25%
With the PTE scheme, you get to reduce your tax burden by more than half for your first $200,000 in chargeable income! Those are some serious savings.
Since there is no limit to the number of years that you can claim Partial Tax Exemption, you will be able to save up to $17,425 in taxes per year. This represents substantial savings when you compound it over a lifetime of running a business.
#11. What are the penalties for misusing the Start-Up Tax Exemption Scheme?
The authorities take a strict view towards individuals who try to abuse tax exemption schemes. A common method employed by those with nefarious motives is to start up a successive chain of new companies every few years, so that they can file tax exemption claims.
Be forewarned that tax evasion is a criminal offence in Singapore, and the penalties for this crime are heavy. If you are convicted of tax evasion, you can be:
Jailed for up to 3 years, per count of tax evasion, and/or
Fined up to $10,000, per count of tax evasion, and/or
Fined up to 3x the amount of tax evaded
#12. How do I protect my start up against lawsuits and other business risks?
Since you’ve invested lots of money and time into starting your new business, you definitely want to protect your company from major risks that could jeopardise everything you’ve sunk into your venture. Having a comprehensive suite of affordable insurance coverage will protect your company from business lawsuits, employee liability, premises damage, and more.
Provide offers the most affordable and comprehensive business insurance plans in Singapore. Click the links below to get insured online, in just 3 mins!
Are you thinking of opening a restaurant, cafe, pub, bar, or some other F&B business? If you wish to start a business like this, one of the key licenses you’ll need to apply for is a Food Shop License. First-time F&B entrepreneurs may find the process a little confusing, so we wrote this guide to simplify the entire journey for you. We’ll walk you through the 3 steps you’ll need to take to get your Food Shop License, how much it’ll cost you, and answer some frequently asked questions related to the license. Let’s get cracking!
We’ll explain:
What is a Food Shop License?
How does a Food Shop License differ from a Food Shop License?
The 3 steps to apply for a Food Shop License in Singapore
Frequently asked questions on Food Shop Licenses
How to protect your food shop business from food poisoning liability, and other major risks
What is a Food Shop License?
A Food Shop License permits you to operate various kinds of food shops. Examples of food shops include:
Cafes
Restaurants
Drink shops
Dessert shops
Takeaway food & beverage shops
Canteens (meaning an entire canteen, not an individual canteen stall)
Food Courts (meaning an entire food court, not an individual food court stall)
Coffee shops/Kopitiams (meaning an entire kopitiam, not an individual kopitiam stall)
Pubs and bars that serve food
Discos/KTVs that serve food
Food Shop Licenses are issued by the Singapore Food Agency.
What’s the difference between a Food Shop License vs a Food Stall License?
Stalls in hawker centres, coffee shops/kopitiams, canteens, etc
Ability to Hire Foreign Workers
Allowed to hire foreign workers.
Not allowed to hire foreign workers. Can only hire Singapore Citizens/PRs.
Cost
$195/year
$32/year
Food shops are essentially stand-alone F&B premises. Food shops can either be sit-in establishments like cafes, or takeaway establishments like bubble tea shops. Food stalls are stalls that are located in a larger food establishment, such as stalls within a food court, canteen, or hawker centre.
What are the documents needed to apply for a Food Shop License?
We’ve consolidated all the documents you need in one list, so you can have everything ready before you apply for your Food Shop License:
ACRA profile of your company (if applying for the license under a company), OR personal details of applicant (name, NRIC, date of birth, contact details, etc.). Your ACRA profile must be dated within 3 months from your application date.
Basic Food Hygiene Certificate / Refresher Food Hygiene Certificate of all food handlers.
Personal details of all food handlers (name, NRIC, date of birth, contact details, etc.)
Tenancy agreement/contract with your landlord.
Use of premises approval from relevant land use agencies – URA, HDB, etc.
Layout plan of your food shop premises. Make sure your layout plan complies with COPEH (Code of Practice on Environmental Health).
Letter of authorisation (only if the application for the Food Shop License is not done by the intended licensee/director of company applying for the licence – e.g. if your friend is helping you to apply for the license)
Cleaning programme document
Pest control contract
What are the 4 steps to apply for a Food Shop License in Singapore?
Step 1: Gather all necessary information
To ensure the quickest application experience, it’s advisable to prepare all the required information (listed in the paragraph above) beforehand. This will help you get through the entire process smoothly, so you can start running your business ASAP.
Some key points to note:
It’s highly recommended you set up a company with ACRA first, and then apply for your Food Shop License under your company: You can only hire foreign workers if your Food Shop License is tagged to a company (e.g. a Private Limited). You cannot hire foreign workers if your Food Shop License is tagged to a personal name (e.g. your own name). Given the nature of food shop manpower requirements, you will likely be setting yourself up for a difficult time if you cannot hire foreign workers. Therefore, it’s recommended that you set up a company with ACRA first. Here’s a great guide we’ve written about how to set up a Private Limited company in Singapore. Once you’ve registered your company, then go ahead to apply for the Food Shop License. Choose a renovation contractor who is familiar with COPEH: COPEH stands for the Code of Environmental Practice. These are a set of rules for food-related premises. If you’re renovating your food shop, the premises must comply with COPEH guidelines. When picking your renovation contractor, make sure you verify that they are familiar with the COPEH standards, as you’ll need to submit your food shop layout to SFA to get the Food Shop License. If your layout doesn’t comply with COPEH, SFA may turn down your license application. Make sure you’ve got your tenancy agreement before applying for the license: You need to submit your tenancy agreement when applying for the Food Shop License. You don’t have to sign the agreement yet until your license is approved, but you need to at least have the agreement in hand. If you’re searching for a place to rent, check out our helpful guide on 10 common commercial lease terms. Ensure you have premises use approvals from the relevant land use agencies (e.g. URA, HDB) before applying for the license: If you’re renting a space that was not previously a food shop, then you’ll need to seek a Grant of Written Permission from URA. If this space (which was not previously a food shop space) is within an HDB premises (e.g. HDB shophouse), then you’ll need to seek HDB approval also. Have this done before you start your license application, because SFA will ask for the approval letters from these agencies. Make sure the food shop’s previous occupant has cancelled their Food Shop License: If the previous occupant was also operating a food shop, and they didn’t cancel their Food Shop License, then SFA will take 2 extra weeks to process your application. This is because SFA will need to contact the previous occupant to cancel their license. Try to contact the previous occupant (e.g. contact them via your landlord, if you can’t reach them directly) to avoid this 2-week delay. Gather personal details of all workers who will be handling food, and ensure they all have basic food hygiene certificates: You’ll need to submit the personal details of food handlers in your stall, as part of the licensing process. All food handlers must have a valid food hygiene certificate.
For certain types of food shops, you will need at least one food hygiene officer: The following types of food shops will require a staff member to be a food hygiene officer.
Restaurant – Housed in two or more adjacent units in private and HDB shophouses; OR – With kitchen area exceeding 16 square metres (172 square feet)
Caterer
Canteen
Food court
A senior member of your staff (e.g. chef, sous chef, manager, assistant manager, etc.) must serve as the food hygiene officer. If your chosen staff member has not worked as a food hygiene officer before, they will need to attend the WSQ Food Safety Course Level 3. Upon completing the course, they will be qualified to work as a food hygiene officer.
Pest control contract: You will need to submit a contract with a Pest Control company during your license application. You don’t have to sign the contract yet – just have one ready for submission. Your contract must have an inspection frequency of at least once a month.
Cleaning programme: You will need to submit a cleaning programme document during your license application. This document should outline your proposed cleaning schedule, state the various areas of your food shop that you will clean, etc.
Step 2: Apply on GoBusiness Licensing Portal
Once you’ve prepared all the necessary documents, log on to the GoBusiness Licensing portal to apply for your Food Shop License. The whole process can be completed online.
How long will SFA take to review my Food Shop License application?
SFA will respond within 5 working days.
Step 3: Arrange for a premises inspection with SFA
Before SFA approves your license, SFA staff will need to go down to your F&B premises, and conduct an inspection. You will need to provide 7 days advance notice for the premises inspection. For instance, if you wish SFA to conduct the inspection on the 7th day of a particular month, then you’ll need to apply by the 1st day of the month at the latest.
How long will SFA take to confirm my inspection date?
SFA will confirm the inspection date within 2 working days, from the time you make the booking.
What will SFA look for during the inspection?
SFA will ensure that the layout plan you submitted is the same as the actual layout of your premises. SFA will also ensure that you have proper food washing facilities, food storage facilities, proper exhaust systems, proper drainage systems, etc.
Step 4: Make payment to SFA
After SFA clears the inspection and approves your license, you’ll need to pay SFA the license fee. A Food Shop License in Singapore costs $195/year (GST included). Once payment is made, SFA will mail your hardcopy Food Shop License within 7 working days. It should take 2 weeks, at most, for you to receive your license. If you don’t receive your hardcopy license within this 2-week timeframe, reach out to SFA again so they can send you another copy of your license.
Frequently asked questions on Food Shop Licenses
When can I start operating my food shop? Do I have to wait for the hardcopy license?
No, you don’t have to wait for the hardcopy license to arrive. For businesses with existing GIRO payment arrangements with SFA: You can start immediately after you’ve received email approval for your license from SFA. For businesses without existing GIRO payment arrangements with SFA: You can start after you’ve made payment to SFA via the GoBusiness portal, or via an AXS machine.
When can I start renovating my food shop? Do I have to wait for my license to be approved?
No, you don’t have to wait for the full Food Shop License to be granted. You can actually begin renovations once you complete Step 1. Once you’ve submitted your application via the GoBusiness Portal, SFA will respond within 5 working days. If SFA approves your application, they will issue you an In-Principle Approval letter. You can then begin your renovation work.
How do I cancel my Food Shop License?
Log on to the GoBusiness portal. You’ll have an option to cancel your license. There are no refunds for cancellations of licenses.
How do I renew my Food Shop License?
GoBusiness: You can renew your license by logging into GoBusiness, and making payment. GIRO: If you sign up for GIRO, your Food Shop License will be automatically renewed each year. You won’t need to track your license’s renewal date, which makes it more convenient for you. Just remember to cancel your GIRO payments if you eventually give up your license.
What happens if my license expires?
You will need to apply for a new license. You cannot renew an expired license. If you’re currently operating a food shop but accidentally let your license expire, you must stop operating your food shop operations while you’re making the application for a new license. This means that you will not be able to run your food shop for at least 5 working days.
Can I apply for a Food Shop License if I don’t have a company?
Yes, you don’t need a company. You can apply as a private individual. However, if your Food Shop License is tied to a private individual, you cannot hire foreign workers. That will make your business difficult to run.
Can I run a food shop without a license?
Under the Environmental Public Health Act, it is illegal to run a food shop without a license. You can be fined up to $10,000 if you operate an unlicensed food shop.
Don’t forget to protect your food shop against food poisoning & major risks
Since you’re selling food, you may accidentally cause food poisoning to your customers. Lawsuits related to food poisoning are not cheap, and can easily cost you tens if not hundreds of thousands of dollars. Food shops are also vulnerable to risks like fire and water damage.
After you’ve gotten your license, make sure that you protect your food stall business. We offer the most affordable and comprehensive business insurance plans in Singapore. Click the links below to get insured online, in just 3 mins!
Are you thinking of opening a food stall? Under Singapore law, you need to first apply for a Food Stall License. We’ve written this guide to help you along the process of getting your Food Stall License.
We’ll explain:
What is a Food Stall License?
What’s the difference between a Food Stall License vs a Food Shop License?
The 3 steps to apply for a Food Stall License in Singapore
Frequently asked questions on Food Stall Licenses
How to protect your food stall business from food poisoning liability, and other major risks
What is a Food Stall License?
A food stall license is an official license that allows you to operate various kinds of food stalls. Examples include:
Hawker centre stall
Coffee shop/kopitiam stall
School canteen stall
Company canteen stall
What’s the difference between a Food Stall License vs a Food Shop License?
Food Stall License
Food Shop License
Type of Business
Stalls in hawker centres, coffee shops/kopitiams, canteens, etc.
Restaurants, cafes, bars, pubs, discos, etc.
Ability to Hire Foreign Workers
Not allowed to hire foreign workers. Can only hire Singapore Citizens/PRs.
Allowed to hire foreign workers.
Cost
$32/year
$195/year
What are the documents needed to apply for a Food Stall License?
We’ve consolidated all the documents you need in one list, so you can have everything ready before you apply for your license:
ACRA profile of your company (if applying for the license under a company), OR personal details of applicant (name, NRIC, date of birth, contact details, etc.).
Basic Food Hygiene Certificate / Refresher Food Hygiene Certificate of all food handlers.
Personal details of all food handlers (name, NRIC, date of birth, contact details, etc.)
Tenancy agreement/contract with your landlord.
Layout plan of your food stall premises. Make sure your layout plan complies with COPEH (Code of Practice on Environmental Health).
Letter of authorisation (only if the application for the Food Stall License is not done by the intended licensee/director of company applying for the license – e.g. if your friend is helping you to apply for the license)
What are the 3 steps to apply for a Food Stall License in Singapore?
Step 1: Gather all necessary information
If you want to have a smooth application experience, it’s best to prepare all the information (listed in the paragraph above) beforehand. This will help you get through the entire process more quickly. Some key points to note are: If you’re renovating the stall, make sure your contractor is familiar with COPEH: COPEH stands for the Code of Environmental Practice. These are a set of rules for food-related premises. If you’re renovating your food stall, the premises must comply with COPEH. Ensure that your contractor is familiar with the COPEH guidelines, as you’ll need to submit your food stall layout to SFA to get the license. If your layout doesn’t comply with COPEH, SFA may turn down your license application. Ensure that you’ve got your tenancy agreement before applying for the license: You need to submit your tenancy agreement when applying for the license. You don’t have to sign the agreement yet until your license is approved, but you need to at least have the agreement in hand. We wrote a guide on 10 common commercial lease terms for entrepreneurs who are reviewing tenancy agreements. Ensure the food stall’s previous occupant has cancelled their Food Stall License: If the previous occupant has not cancelled their Food Stall License, then SFA will take 2 extra weeks to process your application. This is because SFA will need some time to to contact the previous occupant to cancel their license, and then issue you a new license. Try to get in touch with the previous occupant (e.g. contact them via your landlord, if you can’t reach them directly) to handle this task. Gather personal details of all workers who will be handling food, and ensure they all have basic food hygiene certificates: You’ll need to submit the personal details of food handlers in your stall, as part of the licensing process. All food handlers must have a food hygiene certificate.
Step 2: Apply on GoBusiness Licensing Portal
Once you’ve got the necessary documents in hand, head to the GoBusiness Licensing portal to apply for your Food Stall License. The entire process is online.
How long will SFA take to review my license application?
It will take up to 5 working days for SFA to process your Food Stall License application
Step 3: Make payment to SFA
After SFA approves your license, you’ll need to pay SFA the license fee before you can start operating your food stall. A Food Stall License in Singapore costs $32/year (GST included). This license is valid for 1 year. You also have the option of applying for a 2-year license, which will cost $64. Once payment is made, SFA will mail your hardcopy Food Stall License within 7 working days. It should take at most 2 weeks for you to receive your license. If you don’t get your hardcopy license within this timeframe, make sure to contact SFA again so they can send you another copy of your license.
When can I start operating my food stall? Do I have to wait for the hardcopy license?
No, you don’t have to wait for the hardcopy license to arrive. For businesses with existing GIRO payment arrangements with SFA: You can start immediately after you’ve received email approval for your license from SFA. For businesses without existing GIRO payment arrangements with SFA: You can start after you’ve made payment to SFA via the GoBusiness portal, or via an AXS machine.
Frequently asked questions on Food Stall Licenses:
How do I cancel my Food Stall License?
Log on to the GoBusiness portal. You’ll have an option to cancel your license. There are no refunds for cancellations of licenses
How do I renew my Food Stall license?
GoBusiness: You can renew your license by logging into GoBusiness, and making payment. GIRO: If you sign up for GIRO, your Food Stall License will be automatically renewed each year. You won’t need to track renewal dates, which can be more convenient for license holders. Just remember to cancel your GIRO scheme if you end up cancelling your license.
What happens if my license expires?
You will need to make a fresh application for a new license. If you’re currently operating a food stall but accidentally let your license expire, you cannot operate your food stall while you’re making the application for a new license. This means you’ll have a downtime of at least 5 working days.
Can I apply for a license if I don’t have a company?
Yes, you don’t need a company. You can apply as a private individual.
That being said, you’re better protected against legal liability (e.g. for food poisoning) if you operate your food stall under a Private Limited company. Private Limiteds generally limit liability to the assets of the company, so that your personal assets don’t get exposed in case someone gets sick from your food and files a legal claim against you. Here’s a helpful guide on how to start a Private Limited in Singapore.
Can foreigners apply for a Food Stall License?
Take note that Food Stall Licenses are only available to Singapore Citizens or Permanent Residents. If you’re a foreigner but you want to take part in a Food Stall business, then you will need a business partner who’s a citizen or PR to be named as the licensee.
Can I run a food stall without a license?
Under the Environmental Public Health Act, it is illegal to run a food stall without a license. You can be fined up to $10,000 if you operate an unlicensed food stall.
Don’t forget to protect your food stall against food poisoning & major risks
Since you’re selling food, you may accidentally cause food poisoning to your customers. Lawsuits related to food poisoning are not cheap, and can easily cost you tens if not hundreds of thousands of dollars. Food stalls are also vulnerable to risks like fire and water damage.
After you’ve gotten your license, make sure that you protect your food stall business. We offer the most affordable and comprehensive business insurance plans in Singapore. Click the links below to get insured online, in just 3 mins!
If you’re renting a commercial space, you’ll need to sign a commercial lease agreement. However, lease agreements are often written with a confusing amount of legal jargon. Also, you might not know which important lease terms to look out for, and what they even mean. If it’s your first time renting a commercial space, the whole process might seem overwhelming and confusing. We wrote this guide to help you understand a commercial lease agreement easily. Here are the 10 most common commercial lease terms you’ll find in Singapore, and what they mean for you & your business.
What is a commercial lease agreement?
A commercial lease agreement is a legal contract between a tenant (the business renting a space) and a landlord (the owner of the space). A commercial lease agreement sets out the key terms of the rental agreement, such as the amount of rent, deadlines for rent, who is responsible for fixing damage to the property, and more.
Since they are contracts, commercial lease agreements are legally binding. If one party breaks the terms of the commercial lease agreement (e.g. a tenant breaking the lease early, or a landlord not repairing the building when they were supposed to), the party who suffers a loss can sue the other party for damages.
What are the most common terms in commercial lease agreements?
Most landlords will provide the following terms in their commercial lease agreements:
10 Most Common Commercial Lease Terms in Singapore
No.
Lease Term
Explanation
1
Lease duration
Specifies the exact period (e.g. 24 months) that the lease agreement will run for
2
Rent
Specifies the exact amount (e.g. SGD 10,000/month) that the tenant must pay
3
Rent review clause
Specifies when the landlord can review (i.e. increase) the rent during the lease period
4
Deposits and other fees payable
Specifies the exact amount of security deposits (e.g. 1 months’ rent)Also specifies any other fees payable, such as agent fees
5
Utility and other maintenance fees
Specifies who is responsible for utilities (e.g. water, electricity) and maintenance (e.g. painting the building, maintaining electrical wiring, etc.)
6
Renovations
Specifies the tenant’s responsibilities when carrying out renovation work, to ensure the premises is not damaged
7
Sub-leasing
Specifies whether sub-leasing (a tenant renting their space to someone else) is allowed, and if it is allowed what conditions must be fulfilled by the tenant
8
Reinstatement
Specifies the responsibilities of the tenant to restore the property to its original condition when the lease expires
9
Illegal employment of foreign workers
Prohibits tenants from engaging in illegal employment practices with foreigners
10
Commercial insurance
Specifies the type of commercial insurance the tenant must purchase (e.g. public liability insurance, commercial property insurance), and the amount (e.g. no less than $500,000)
1. Lease Duration
This term will specify the exact duration of the commercial lease.
Lease terms depend on the nature of your commercial space (e.g. office, F&B, retail, industrial, etc.), and the size of your space. Leases for spaces under 3,000 square feet can run between 1-3 years. Larger spaces above 3,000 square feet generally run longer, from anywhere between 3- 6 years or more.
Lease renewal option
Landlords will typically grant tenants a renewal option. This is a right, but not an obligation, to extend your lease beyond the initial period. For instance, if you sign a 3-year initial lease with an option for a 3-year renewal, you can lease the space for 6 years, before you have to sign a brand new lease agreement (which may come with different terms than your initial lease agreement).
Lease renewal options benefit both tenants and landlords. A renewal option is good for tenants because it prevents them getting forced out by another business, who could outbid them on rental offers and take over their space. It’s good for landlords because it offers tenants an incentive to stay on, thus maximising rental profits.
Early lease termination
This clause specifies penalties payable if tenants terminate the lease early. In the vast majority of commercial leases (as with residential leases), the tenant will remain liable to pay the rent for the remainder of the lease, unless they can find another tenant to replace them. Breaking a lease early is a breach of contract, so landlords have the right to sue such tenants for damages.
2. Rent
This will state the exact amount of rent payable to the landlord. This is sometimes also termed “Gross Rent”. Rent is usually payable on a monthly basis.
Rent will usually comprise the following:
Base Rent: This is based off the square footage of your premises, plus
GST: Prevailing Goods and Services tax, plus
Service Charges: These are maintenance charges levied by the landlord, for expenses like maintenance, security, fire prevention, repairs, etc.
Most commercial leases will also have a condition that service charges can vary from time to time during the lease, depending on the exact costs incurred by the landlord. If you’re a tenant, make sure you have sufficient financial cushion to weather any potential increases in service charges.
Rent-Free Fitting Out Period
It’s common for landlords to allow tenants a rent-free period while they renovate their premises. Usually, most lease agreements will provide the tenant with 1 month of free rent during this initial fit-out period.
3. Rent Review Clause
Longer leases (those which last for 4 to 6 years, or more) frequently will contain this clause. This allows the landlord to adjust the rent, according to prevailing market rates. This prevents the landlord being locked into an agreement where tenants pay below-market rent.
4. Security Deposits, and Other Fees
This term will specify the exact amount of security deposit the tenant has to place with the landlord, along with the tenant’s responsibility for other fees. Most lease agreements will ask for between 1-3 months worth of rent as a deposit. Longer-dated leases that will run for many years may ask for 6 months of rent (or more) as a deposit.
Security deposits protect the landlord against tenants who may breach the terms of the lease agreement. For instance, tenants may inadvertently cause damage to their premises. Damage can easily occur during the renovation process, or during the day-to-day running of the business. If there is damage, the landlord can deduct the cost of repairing the property from the security deposit. Also, if the tenant breaks their lease agreement early, the landlord can deduct the security deposit as compensation for lost rental income.
Other Fees: Stamp Duty
Tenants of commercial properties in Singapore must pay stamp duty. Stamp duty is payable to IRAS.
Average Annual Rent (AAR)
Stamp Duty Rate
AAR under $1,000
Exempted
AAR over $1,000
Lease shorter than 4 years
0.4% of total rent for the duration of the lease
Lease longer than 4 years
0.4% of 4 times the AAR for the duration of the lease
Example: A restaurant rents a commercial premises for 2 years. The Average Annual Rent (AAR) is $120,000 ($10,000/month, times 12 months). Since the AAR is over $1,000, but the lease is shorter than 4 years, the stamp duty payable is 0.4% of the total rent over the 2-year lease.
Total rent payable over 2-year lease: $240,000 ($120,000 per year, times 2 years)
Stamp duty rate: 0.4%
Stamp duty payable: $960
The restaurant must therefore pay $960 in stamp duty to IRAS.
5. Utility and Maintenance
This term specifies who is responsible for paying utility bills (electricity, water, internet, phone, etc.). Under most commercial lease agreements, the tenant is usually responsible for all these utility costs.
However, maintenance costs are usually borne by the landlord. Maintenance refers to services like ensuring that common areas are kept in proper condition, maintaining the exterior of the building, ensuring that the electrical wiring is working properly, etc.
6. Renovations
Renovations have the potential to cause serious damage to the premises if not carried out properly. As such, commercial lease agreements will specify that renovations are to be done only in compliance with specific contractual requirements. For instance, commercial lease agreements may prohibit tenants from removing or altering basic fittings like pipes, air-conditioning ducts, electrical wiring, structural walls, and other built-in elements.
Renovation deposits
Commercial leases commonly will ask you for a renovation deposit. This is a sum of money held by the landlord while you’re carrying out renovation works. This acts as a form of security in case you damage the landlord’s property during renovation. The deposit will be returned to the tenant after renovations are done, and once the landlord has ascertained that no damage has been inflicted upon the commercial property.
Sometimes, instead of a cash deposit, the landlord may accept an Insurance Security Bond. This frees up cash flow for the tenant, especially if the renovations are extensive and the deposit sum required is large.
7. Sub-Leasing
This term will specify whether or not the tenant is allowed to sub-let their commercial space. For instance, an F&B space might sub-let a portion of their premises to a bakery operated by a 3rd-party. Generally, most commercial lease agreements will prevent the tenant from sub-letting their premises, unless the landlord has given explicit consent.
Sub-letting fees
If your commercial lease allows you to sub-let your space, the lease may also specify sub-letting fees which are chargeable. Read your lease carefully to ascertain the precise sub-letting fees you have to pay, if you sublease your space.
Sub-letting restrictions
Some landlords may restrict the types of tenants that you can sub-let your space to. For instance, some landlords may only allow you to sub-let to companies that you are a majority shareholder of, or another company that is your majority shareholder. There may also be restrictions on the types of businesses that you can sub-let to – for instance, some landlords may not allow you to sub-let to retail or F&B businesses.
8. Reinstatement
This specifies the requirement for tenants to reinstate the premises to its original condition once their lease expires. Most commercial leases will contain this requirement.
The commercial lease agreement will also specify the extent of reinstatement that needs to be performed when handing the property back to the landlord. Usual examples of such requirements include:
Tenant must remove all their furniture, equipment, and other personal belongings
Tenant must remove all their masonry/carpentry work (e.g. parquet flooring, brick flooring, cabinets) which they installed
Tenant must remove all additional plumbing work (e.g. new pipes installed by the tenant)
Tenant must remove all additional electrical and data cabling (e.g. new lighting/ethernet/telephone points and cables installed by the tenant)
Tenant must repaint all walls and ceilings to their original colour
Tenant must repair any damage to the premises that they caused (e.g. cracked walls)
Tenant must remove all partitions and false ceilings they installed
Tenant must restore all fire safety equipment to their original locations (e.g. moving fire extinguishers to a different location to accommodate office desks)
Tenant must remove any additional fire safety equipment they installed (e.g. new fire extinguishers or smoke detectors installed by the tenant)
Tenant must clean premises and ensure no refuse is left behind
Also, reinstatement clauses may state that the landlord has the right to appoint a specific reinstatement contractor, at the tenant’s cost. This means that as a tenant, you won’t have control over the exact cost of the reinstatement. Even if you find a cheaper contractor to carry out the reinstatement, you won’t be able to select them. If your lease agreement contains this clause, you may wish to consider negotiating on this point with the landlord. This can avoid nasty surprises later on if you get handed a large reinstatement bill, simply because the contractor knows you have no choice but to accept their prices!
9. Illegal Employment of Foreign Workers
This term is most common in F&B and industrial lease agreements. Landlords will insert this clause to protect themselves from legal liability in case their tenants hire illegal workers. This term prohibits tenants from engaging in unlawful hiring practices for foreigners.
10. Commercial Insurance
In most commercial lease contracts, landlords will ask tenants to carry the following types of insurance:
Public Liability Insurance: Coverage amounts requested typically range from $1 million to $2 million, depending on the type and size of the commercial space. Click here to buy this insurance online in 3 minutes, from $9/month.
Commercial Property Insurance (a.k.a. Property/Industrial All Risks Insurance): Coverage amounts requested typically range from $100,000 to $500,000. Click here to buy this insurance online in 3 minutes, from $12/month.
Public Liability Insurance protects tenants from lawsuits related to injury or property damage caused to third-parties. For instance, if a customer walks into your retail shop, slips and falls, they can sue you for causing personal injury. Public Liability Insurance would pay for your lawyer’s fees and damages.
Commercial Property Insurance protects your premises against physical risks like fire, explosions, certain kinds of water damage and other major risks.
Protecting your commercial premises and your business
After you’ve gotten your commercial space, make sure that you protect your business. Provide is the easiest, quickest, and most affordable platform to get business insurance in Singapore. Click the links below to get insured online, in just 3 mins!
If you’re running a business, disinfection services will help to keep your customers and employees feeling safe and healthy. Since the outbreak of Covid, business owners have been taking commercial hygiene much more seriously. Disinfection services are vital for all kinds of commercial properties, whether they’re offices, warehouses, factories, restaurants, retail shops, or any other kind of place where people come together to do business.
We put together this list of Singapore’s 5 most highly-rated and popular disinfection services. We looked for companies with the highest Google ratings, backed up by a reasonable number of Google reviews (at least 30+ reviews).
De Hygenique is a disinfection and cleaning company that’s licensed by NEA. De Hygenique provides disinfection services for both commercial and residential properties.
De Hygenique disinfects a wide variety of commercial properties. This includes office, childcare centres, hotels, cinemas, hospitals, schools, restaurants and F&B outlets, and other types of business premises. On their website, De Hygenique advertises its disinfection service as being effective against a wide variety of pathogens, including Covid-19, Hand Foot and Mouth Disease, SARS, and more.
Some of the steps involved in De Hygenique’s disinfection service include:
Cold mist disinfectant spray: allows bactericidal solution to blanket the whole room. Helps to more easily kill bacteria in corners, ceilings, and other difficult-to-clean areas
Electrostatic fogging: sprays positively-charged disinfectant which clings to negatively-charged surfaces. Especially useful for sensitive commercial premises like clean rooms, R&B labs, healthcare facilities, and schools.
Wipe down of high touch areas: cleaning of high-touch areas like door handles with anti-bacterial solutions
De Hygenique has built favourable reviews on Google – the company has managed to earn a 5.0 star rating on Google, spread across 50 reviews (accurate as of this article’s publication date).
De Hygenique also performs residential disinfection services. They also offer mattress cleaning, which is useful if you’ve stained your mattress and need it freshly cleaned for a good night’s rest.
Additional services:
De Hygenique also offers additional specialised cleaning services. This includes rug cleaning, fabric wall cleaning, leather cleaning, upholstery cleaning, mattress cleaning, and more. If you’ve got such items that need a good thorough cleaning, consider reaching out to De Hygenique; after a good clean, your might look fresh and lively once more. The company also offers an annual cleaning package that promises savings of up to 25%.
#2. Sureclean
Website: https//www.sureclean.com.sg
Phone: 6983 9523
Email: Contact Sureclean on their website
Services:
Office disinfection
Commercial building disinfection
Home disinfection
Overview:
Sureclean is a disinfection and cleaning company that’s licensed by NEA. Sureclean provides disinfection services for both commercial and residential properties.
Sureclean disinfects a wide variety of business premises. This includes office, hospitals, schools, public transportation environments, and other types of commercial areas. Their disinfection service includes services such as disinfectant misting. This involves spraying a disinfectant solution across your business premises. Mist spraying is an efficient method to deliver bactericidal formulations across surfaces like work desks, computers, floors, walls, machinery, curtains, and other high-touch areas.
Sureclean advertises that its anti-bacterial formulation is effective against a variety of harmful pathogens like Covid-19, Hand Foot and Mouth Disease, MRSA, and more.
Sureclean has good ratings on Google – the company has kept a 5.0 star rating on Google, accumulated over 99 reviews (accurate as of this article’s publication date).
Sureclean also performs residential disinfection services. They also offer mattress cleaning, which is useful if you’ve stained your mattress and need it freshly cleaned for a good night’s rest.
Additional services:
Sureclean also offers an array of other disinfection and specialised cleaning services. Here are some of the services you can book:
Car disinfection
Mattress cleaning
Upholstery cleaning
Move in/move out cleaning
Post-renovation cleaning
Sureclean also offers some anti-bacterial products for sale on its website. For instance, you can purchase spray bottles of disinfectant. If you want to disinfect high-touch surfaces regularly on your own, it’s a good idea to get some disinfectant (whether from Sureclean or from other sites like Shopee) so that you can maximise cleanliness in your premises.
Helpling operates as a marketplace platform for disinfection and cleaning services in Singapore. When you submit an enquiry to them, they’ll match your request to their pool of disinfection providers and cleaners.
Helpling offers disinfections for offices, retail/F&B establishments, and homes.
Helpling’s disinfection service is quite comprehensive, and includes the following services:
Lumitest before and after disinfection. Lumitest is an electronic device that measures the level of bacteria from a certain surface. It’s seen increasing use since the outbreak of Covid-19.
Chemical disinfectant misting of your premises. Misting can be an effective way to disinfect hard-to-reach places, like corners. It can also act as a back-stop to disinfect surfaces that weren’t properly wiped down during the manual cleaning process.
Wipe down of high-touch surfaces (e.g. door handles) with 70% alcohol solution. 70% is the industry standard for disinfection.
Biohazard waste disposal, if applicable
Service report after completion of disinfection
Helpling has the highest number of reviews out of all the disinfection service providers in this list. They’ve built up an impressive 1,688 reviews on Google, plus another 864 reviews on Trustpilot. Helpling has an average 4.7/5 rating on both Google and Trustpilot. Businesses can’t delete customer reviews left on Google or Trustpilot, so the fact that it’s built up so many good reviews says something about their service quality.
Whissh is a highly-rated disinfection service provider in Singapore. They’ve got over 220 reviews on Google, with an average rating of 4.2 (accurate as of this article’s publication date). Whissh is approved by NEA to provide disinfection services for premises that have been exposed to Covid-19.
Whissh provides commercial disinfection services for many different types of business environments. They are able to disinfect offices, schools, F&B outlets, gyms, childcare centres, hotels, vehicles, and more.
Their disinfection process is comprehensive, and includes the following services:
Mist disinfectant spray: Sprays bactericidal solution to blanket the whole room. An efficient method to kill bacteria in corners, ceilings, and other difficult-to-clean areas
Electrostatic fogging: Sprays positively-charged disinfectant which clings to negatively-charged surfaces. Especially useful for sensitive commercial premises like clean rooms, R&B labs, healthcare facilities, and schools.
Wipe down of high touch areas: Cleans frequently touched surfaces like door handles with anti-bacterial solutions
Application of anti-microbial coating: Helps prevent bacterial growth
Certificate and service report: You can display this in a prominent location in your premises. This lets clients know that you’ve taken proactive steps to keep them safe.
Additional services:
Besides disinfection, Whissh also provides laundry services, electrician services, plumbing services, and more. They function as a one-stop-shop for many of these routine tasks that property owners need to have done. This helps customers save time and effort in sourcing for various providers.
HVAC Engineering provides a comprehensive set of disinfection and cleaning services. They are primarily focused on disinfection services for businesses. HVAC Engineering is an approved vendor by NEA for Covid disinfection services.
HVAC Engineering provides a comprehensive set of air disinfection/air quality control services. Here are some of the services they offer:
UV disinfection: Killing bacteria and viruses using UV light has grown significantly in popularity with Covid-19. The type of UV light used is 200-280nm, which is a powerful source of UV light. This is known in industry terms as UVGI (Ultraviolet Germicidal). Depending on the strength of UV light used, various bacteria can be killed in mere seconds following exposure to the light.
AHU and cleaning: Air handling units can spread pollutants and germs if not properly maintained. HVAC Engineering offers services to properly cleanse and maintain your AHUs. This will ensure your air quality is in tip-top condition.
Mould removal: In humid Singapore, mould can easily and quickly grow on a variety of surfaces. Mould is tricky to get rid of, particularly if it begins growing on porous material like wood, or semi-porous surfaces like concrete.
Building ventilation improvement: HVAC Engineering provides consultancy services to ensure that ventilation in your premises is maximised.
Indoor air quality testing:
When you look at HVAC Engineering’s list of services, you begin to see that they take a more comprehensive view of disinfection. HVAC does not simply disinfect surfaces that you touch on a regular basis. They also disinfect and clean air-conditioning units which can spread pollutants if they are not properly maintained.
HVAC Engineering disinfects a wide variety of commercial properties. This includes office, hospitals, schools, and other types of business environments.
HVAC Engineering also has a post-Circuit Breaker promotion.
Post-Circuit Breaker Disinfection Promotions
(Contact HVAC Engineering to enquire about availability)
Package A
Package B
Package C
– Best for premises over 5,000 square feet, or those with over 30 staff
Package D
– Best for premises over 5,000 square feet, or those with over 30 staff
Apply anti-bacterial shield (lasts up to 90 days)
Apply anti-bacterial shield (lasts up to 90 days)
Apply anti-bacterial shield (lasts up to 90 days)
Bio-fogging (spraying of anti-bacterial mist) of your premises
Bio-fogging (spraying of anti-bacterial mist) of your premises
Bio-fogging (spraying of anti-bacterial mist) of your premises
Floor mopping
Floor mopping
Vacuum carpet with HEPA vacuum
Vacuum carpet with HEPA vacuum
Wipe down frequently touched areas with virus-killing solution
Wipe down frequently touched areas with virus-killing solution
$288 onwards
$388 onwards
$888 onwards
$1,200 onwards
HVAC Engineering has a positive set of customer reviews online. The company has a 4.7 rating on Google, earned over 39 reviews (accurate as of this article’s publication date).
Additional services:
HVAC Engineering also sells various disinfection and air-quality maintenance products. For example, they provide air purifier units that you can set up in your business premises or home. These air purifiers come with HEPA filters to draw out pollutants or allergens that might be in the air, which is good for those with sensitive respiratory systems or allergies. They also provide dehumidifiers, which help combat the growth of mould or algae, which can occur in particularly humid or poorly-ventilated environments.
Protecting your business and employees:
After you’ve disinfected your business premises, make sure that you protect your company against major risks. In particular, it’s vital that you cover your employees against contracting Covid-19. Work Injury Compensation Insurance covers medical expenses for diseases and injuries, including Covid-19. Click here to buy Work Injury Insurance in just 3 mins, from $5/month per worker.
We offer the most affordable and comprehensive business insurance plans in Singapore. Click the links below to get insured online, in just 3 mins!
In Singapore, there are lots of swanky coworking spaces that are very nicely appointed (with swanky prices to match, too). Leading global names like WeWork come to mind. But what if you’re a business owner who doesn’t need all the frills or the branding, and just wants an affordable place to get work done? That’s why we’ve specially scoured the internet to put together this list of the 5 cheapest coworking spaces in Singapore. Now, it doesn’t mean that just because these are the country’s most affordable coworking spaces that they’re dingy, or poorly furnished. You’ll find that many of these coworking spaces are not only competitively priced, but they’re also very nicely appointed, and represent great value for money. This list should help you save at least a couple hundred dollars on coworking spaces. You can put all that money you’ve saved to good use for your business.
Location: 111 North Bridge Rd, #21-01 Peninsula Plaza, Singapore 179098 (5 mins walk from City Hall MRT)
Out of the 5 options listed here, Lionsworld is by far the cheapest hot desk coworking space. That they’re located in the CBD, close to City Hall MRT station, makes their rates even more impressive. As if this deal wasn’t aggressive enough, their hot desk plan even comes with a free daily meal (more info below)! The next 2 closest competitors are Workcentral at $200/month (Dhoby Ghaut), and The Work Shop at $220/month (Ang Mo Kio). This makes Lionsworld at least 70% cheaper than competing hot desk providers.
For context, the going rate for a hot desk at WeWork starts from $550-$600/month. At JustCo, another popular coworking space, a hot desk goes for $398/month.
Location: 190 Clemenceau Ave, #06-01 Singapore Shopping Centre, Singapore 239924
Out of the 5 options listed here, The Workshop (Ang Mo Kio branch) has the cheapest fixed desk coworking space. However, take note that it’s situated about 8 bus stops from Ang Mo Kio MRT station, so it’s not the most conveniently located. The next cheapest fixed desk option is Workcentral ($500/month, or $400/month per pax for team seating/private offices). Workcentral is just a 5-minute walk from Dhoby Ghaut MRT, which probably will be more convenient for most coworking office users.
For perspective, $500/month for a fixed desk in the CBD is competitive. A fixed desk at WeWork typically starts from $600-$650/month, and a fixed desk at JustCo starts from $750/month. You’ll typically pay at least $700-800/month for most coworking fixed desks in the central region. This makes Workcentral’s fixed desks at least 30% cheaper than competing coworking spaces.
Cheapest Coworking Offices in Singapore
Lionsworld
Workbuddy
Workcentral
The Work Shop (AMK location)
Cospace Park
Hot desk prices
$75/month
$129/month
(Limited to 5 visits/month)
$200/month
$220/month
$300/month
Fixed desk prices
No fixed desk option
$299/month
$500/month
For team desk: $400/month per pax
$300/month
No fixed desk option
Private office prices
$900/month onwards
No private office option
$400/month per pax onwards
$500/month onwards
$500/month per pax onwards
Opening hours
24/7 access
Office hours only (typically 8:30AM to 6:30PM, but specific hours will vary between locations)
24/7 access
24/7 access
24/7 access
Locations
Peninsula Plaza, 111 North Bridge Road #21-01, Singapore 179098
49+ locations islandwide. Most locations located in CBD.
Good spread of locations in suburbs also, including Paya Lebar, Kallang, Jurong West, Jurong East, Changi, Buona Vista, Sentosa, & more.
190 Clemenceau Ave, #06-01 Singapore Shopping Centre, Singapore 239924
5008 Ang Mo Kio Ave 5, #04-09 Techplace II, Singapore 569874
Sparkle @ Science Park 2, 43 Science Park Road, #01-11, Singapore 117408
Closest
MRT station
City Hall MRT (5 mins walk)
Varies by coworking space, but most are within short walking distance to an MRT station
Dhoby Ghaut MRT (5 mins walk)
Ang Mo Kio MRT (8 bus stops away)
Kent Ridge MRT (10 mins walk)
Best for
Solopreneurs/ Entrepreneurs with small teams looking for a budget option in the middle of the city
Entrepreneurs who want a coworking space near their home. Also great for those who want the flexibility to work at different locations through the month.
Entrepreneurs/startups who want a cheap desk in the CBD
Good for entrepreneurs who sell products, and who need a storage-cum-coworking office solution.
Entrepreneurs who want affordable private office packages, or who want to be near NUS/Healthtech hub at Fusionopolis
Here are the 5 cheapest coworking spaces in Singapore:
Lionsworld’s hot desk plan is the absolute cheapest in this list, coming in at just $75/month. That’s almost 1/3 of what its closest competitors charge! Although their coworking offices don’t sport the same snazzy interior designs as other more expensive options, they’re still nonetheless decently furbished. And at a price of just $2.50/day ($75/30), who’s complaining? You’ll still get all the amenities in a regular coworking space like WiFi, air-conditoning, 24/7 access, printing facilities, lounge areas, etc.
One of the reasons Lionsworld is able to charge such low rates is their location in Peninsula Plaza. If you want to impress business guests by hosting them in your coworking space, then a coworking space in this building might not be your best bet. However, if you’re looking to save as much money as possible, while still getting a fully-equipped office with an excellent location right in the middle the city, then Lionsworld looks hard to beat.
Even with such low monthly charges, Lionsworld manages to really go the extra mile by offering its customers free daily lunch and dessert (plus coffee/tea), from Monday to Friday. This is a standout feature that we have not seen in other coworking spaces. When you subscribe to their coworking plans (whether it’s a hot desk, fixed desk, or private office), you’ll get access to these free meals, desserts, and drinks throughout the work week! Now, that’s great value for money. Their meals are prepared without pork. Dessert items are also prepared without sugar, so you can control the level of sweetness you’d like.
Taking a look at Lionsworld’s website, some sample items from their menu (last updated October 2020) include:
All of Lionsworld’s coworking plans also come with registered business address and mail handling services. This means you can use Lionsworld’s address as your ACRA-registered address, and have your business mail stored for you. You also get a dedicated landline number, plus free call forwarding to your mobile number. That’s a really convenient way to answer business calls from clients wherever you are in the country. For an additional $125/month, you can have one of Lionsworld’s receptionists answer calls for you, with the ability to customise answer scripts based on your needs.
Lionsworld’s coworking plans don’t feature fixed desks. Instead, they offer private offices. These private offices start can accommodate solopreneurs, all the way up to small teams. Prices for private offices aren’t publicly listed on their website, so drop them a message or call to enquire about their latest rates.
Their private offices are all fully-furnished, and ready for immediate move in. Because they’re located on a high floor in the city centre, you’re likely to get some nice views from your office. Lionsworld’s private office plans come with some nice perks. This includes 8 hours of free monthly usage of their meeting rooms, a free dedicated fax number, and dedicated support from Lionsworld receptionists for call answering. And just like with hot desk subscribers, private office customers get access to the free lunches and desserts being served Monday – Friday.
Other business services:
Lionsworld also offers incorporation services and web hosting services, which is convenient if you want to consolidate your back-end business needs with one service provider. Lionsworld also has another coworking space in Malaysia. This coworking space is located in central Kuala Lumpur (Bukit Bintang), just a short distance from the Petronas Twin Towers. This allows them to help you with mail forwarding services from Malaysia, if you happen to need to receive mail in Malaysia. For a small top-up fee, you can also access the business lounge in their Malaysian coworking office.
Workbuddy has a truly impressive roster of locations in Singapore. When you sign up with Workbuddy, you immediately get access to 49+ coworking offices across Singapore.
You’ll be able to work from some of Singapore’s most well-known coworking spaces. Your Workbuddy subscription entitles you to get into spaces like WeWork (6 locations to choose from), The Working Capitol, ARCC Spaces, and more. Signing up with Workbuddy is even cheaper than signing up with some of these coworking spaces directly! For instance, a hot desk at WeWork starts from $550-$600/month. However, Workbuddy’s Unlimited Hot Desk Plan only costs you $299/month. That’s 50% cheaper than renting a space from WeWork directly!
Get access to super sleek coworking offices like One&Co (3 mins walk from Tanjong Pagar MRT) with a Workbuddy subscription. Source.
These lower rates are possible because Workbuddy operates as a coworking membership platform. This gives Workbuddy customers enhanced choice and flexibility in choosing the coworking space they like best. As a Workbuddy customer, you’ll get access to all their 49+ locations island-wide. The only caveat with these low prices is that with Workbuddy’s Unlimited Plan, you can only visit each coworking location up to 12 times per month. This cap resets every month. That means if you’re in the office everyday, you’ll be rotating between 2 different coworking locations, at most. This monthly 12-visit cap per coworking space prevents too many members from crowding at any one location, which helps you get easier access to popular spots (like their locations in the CBD). However, with 49+ different locations to choose from, it’s unlikely that you’ll have trouble conveniently getting to another of Workbuddy’s coworking spaces.
Out of its 49+ offices, Workbuddy has 35+ coworking spaces clustered within the CBD. These CBD locations are spread across the Orchard belt, Bugis, Tanjong Pagar, Clarke Quay, and more. This gives you plenty of different centrally-located offices that you can choose from. This flexibility to choose your office is especially convenient if you have business meetings nearby, since you can choose the office that’s the shortest distance to your meeting. If you get tired of working in one location and want a change of scenery, simply pack up and head to another office!
The great thing about Workbuddy is that they also have a good number of locations in residential suburbs too. You can find Workbuddy coworking offices in areas like Changi, Paya Lebar, Kallang, Jurong West, Jurong East, Buona Vista, Queenstown, Harbourfront and more. They even have a coworking location in Sentosa island! Talk about accessibility. If you live close to these aforementioned areas and don’t want to travel too far from your home, then Workbuddy’s wide spread of locations may be ideal for you.
Workbuddy happens to have the lowest nominal rates for hot desk coworking plans in this list. However, take note that this $129/month rate only limits you to 5 visits per month. This works out to $25.30/day. If you need daily hot desk access, then it’s best to go with Workbuddy’s unlimited plan, which is $299/month (which is just under $10/day).
Amenities
Many of Workbuddy’s coworking offices are brand names in the coworking sector. Even though their rates are so affordable, Workbuddy’s offices are very nicely appointed. Their offices come with sleek interior décor, with all the amenities that you’d expect from a modern shared working space.
Here are some of the stylish and well-equipped coworking offices you’ll get access to when you sign up with Workbuddy:
Use of communal facilities (e.g. common lounge area)
✓
✓
✓
✓
Unlimited WiFi
✓
✓
✓
✓
Meeting room credits
✓
✓
✓
✓
Reception and concierge service
✓
✓
✓
ü
Business address with mail handling
✓
✓
✓
✓
Dedicated telephone line with call answering
✓
✓
Lockable storage
✓
✓
✓
Cable internet
✓
Price
$200/month
$500/month
$400/month per pax
From $400/month per pax, up to 14 pax
Minimum contract period
Enquire for more info
Overview:
Workcentral’s coworking office is very conveniently located – it’s just a 5-minute walk from Dhoby Ghaut MRT. Its space is very nicely appointed. You won’t really miss out on amenities provided by more expensive coworking offices. The office is also open 24/7. Air-conditioning runs till 10PM daily, even on weekends and Public Holidays.
Workcentral’s hot desks ($200/month) are very affordable, especially given the office’s prime location within Orchard. If you’re a solopreneur on a budget who needs to be in the city, Workcentral’s coworking office would be an excellent option to consider.
Workcentral’s fixed desks come in the form of a cubicle. Most other fixed desk options in other coworking spaces are arranged on an open plan basis, so there’s not a lot of privacy offered. If you have to take important calls or view sensitive documents, such open plan formats may not be the most ideal. Workcentral’s cubicles are therefore a useful option if you want a fixed desk that can provide you with a little more privacy. Also, having your own cubicle with a large table gives you more space to work on, plus extra storage to shelve files and other business knick-knacks.
Amenities:
Workcentral boasts a wide variety of communal spaces. It’s a thoughtfully designed coworking space that encourages interaction, and allows members to host good team discussions.
Concierge:
Vibrant area with staff to warmly receive your clients/guests
Brewhouse lounge area:
Relaxing space to chill out with your team mates and discuss your next big business idea
Communal dining area:
Good-sized dining area to have meals and drinks with your team members or business partners
Reading room:
Quiet room to digest important business documents
With all these amenities, well-equipped offices, sleek modern design, and its central location, Workcentral is a good value-for-money coworking space for small business owners.
Workcentral also offers virtual office services. This is useful if you need mail collection/forwarding services, or if you want to use Workcentral’s address as your registered business address. Their lowest-priced plan starts at $20/month. However, there are other virtual offices that can offer cheaper rates than that. If you want to save even more money, check out our guide on Singapore’s 5 cheapest virtual offices.
The Workshop’s prices are the 3rd lowest in this list, starting at $220/month for a hotdesk. This is best suited for solopreneurs who need an affordable space to get work done, without being too fussy about need a fixed desk to work from.
The Workshop also offers storage units, which is quite unusual for a coworking space. These storage units are basically mini-warehouse-like storage rooms. These are particularly suitable for businesses that sell physical products, like clothing, toys, or other items. If you sign up for a storage unit, you’ll also get access to a hot desk. This way, you can drop by The Workshop to check in on your products, and you can then get some work done while you’re there.
The Workshop differentiates itself from most other coworking spaces by offering Makerpods. These are private offices designed for businesses that sell products. These include business producing 3D Printed products, fashion products, and more. If you’re running a business that makes physical products, you can contact The Workshop for more details to see whether their Makerpods are suitable for you.
The Workshop’s coworking space is most suitable for those who live near Ang Mo Kio, or especially for those who drive. Unlike the other coworking spaces in this list, The Workshop isn’t located within walking distance to an MRT station, and it’s not in the central area of Singapore. The Workshop is located in Ang Mo Kio, and if you’re taking public transportation, it’s 8 bus stops away from Ang Mo Kio station. The Workshop does have two additional locations in Lavender and Bukit Merah, but those are more expensive. The Workshop’s affordable Ang Mo Kio location is thus best suited for entrepreneurs who don’t need to meet clients or host business meetings in their coworking space, since its location doesn’t make it the most accessible.
Cospacepark’s hot desks are the 3rd cheapest in this list. Cospacepark offers a modern coworking office located in Science Park, right next to NUS. Cospacepark is especially suited for entrepreneurs who want to be close to NUS and/or the health sciences hub at Fusionopolis. Cospaceparks’ prices for private offices are not too bad at $500/pax. For coworking offices in central locations, $500 is what you’d pay for a fixed desk, and not a private office.
Protecting your business:
After you’ve gotten your coworking space, make sure that you protect your business. Provide is the easiest, quickest, and most affordable platform to get business insurance in Singapore. Click the links below to get insured online, in just 3 mins!
If you want to sell alcohol in your business, you must apply for a liquor licence. Liquor licences are controlled by the Singapore Police Force. In this comprehensive guide, we’ll walk you through everything you need to successfully apply for a liquor licence in Singapore.
Here are the 3 steps to apply for a licence to sell alcohol in Singapore:
Step 1: Choose the right type of liquor licence
Step 2: Meet qualification criteria for licence
Step 3: Apply online on GoBusiness Licensing Portal
Additional information to note when getting a liquor licence:
Complying with liquor licence regulations
Protecting your liquor business
Step 1: Choose the right type of liquor licence
There are 8 different kinds of liquor licences that you can apply for in Singapore. Make sure you decide which is most suitable for your business. The law regulating liquor sales is called the Liquor Control (Supply and Consumption) (Liquor Licensing) Regulations 2015.
Here are the key factors you should think about when choosing which type of licence to get:
Do you intend to sell only beer, or beer + liquor? There are different licences for beer-only establishments, versus establishments that can sell beer and other liquors.
How many hours do you wish to sell alcohol for each day? There are different licences for different opening and closing times.
Do you intend to allow customers to drink on your premises? Or do you only want to run a take-away liquor store (e.g. wine shop)?
Do you intend to sell to consumers (i.e. retail liquor business), or do you intend to sell to other businesses (i.e. a wholesale liquor business)?
Here is the list of the 8 different kinds of liquor licences which you can apply for:
Types of Liquor Licences in Singapore
Licence Class
Business type
Liquor licence cost (SGD)
Suitable for
1A
Sale for on-site liquor consumption from 6AM to 11:59PM
$880/year or pro-rata
Restaurants
Cafes
Bars
Pubs
KTVs
Other F&B outlets
1B
Sale for on-site liquor consumption from 6AM to 10PM
$660/year or pro-rata
2A
Sale for on-site consumption of beer only from 6AM to 11:59PM
$460/year or pro-rata
2B
Sale for on-site consumption of beer only, during specified daily trading hours (these hours to be indicated in liquor licence)
$285/year or pro-rata
3A
Retail sale* of liquor for consumption at premises other than the licenced premises, from 7AM to 10:29PM**
*Retail sales refer to sales of under 30 litres of liquor, per person
**Restrictions on alcohol sale times don’t apply if you’re delivering alcohol to private residences/establishments (e.g. F&B outlets, people’s houses, etc.)
$110/year or pro-rata
Online alcohol stores
Wine shops
Liquor shops
Convenience shops/Mama shops
Grocery shops
3B
Retail sale* of beer for consumption at premises other than the licenced premises only from 7AM to 10:29PM**
*Retail sales refer to sales of under 30 litres of liquor, per person
**Restrictions on alcohol sale times don’t apply if you’re delivering alcohol to private residences/establishments (e.g. F&B outlets, people’s houses, etc.)
$110/year or pro-rata
Online alcohol stores
Convenience shops/Mama shops
Grocery shops
4
Wholesale* of liquor for consumption at premises other than the licenced premises from 7AM to 10:29PM**
*Wholesale refers to sales of 30 litres or more of liquor, per person
**Restrictions on alcohol sale times don’t apply if you’re delivering alcohol to private residences/establishments (e.g. F&B outlets, people’s houses, etc.)
$110/year or pro-rata
Alcohol wholesalers
5
Temporary licence
$22/day or $44/week, whichever is lower
Pop-up F&B stores
Pop-up liquor stores/booths
Some useful pointers on liquor licences:
Delivery of alcohol beyond specified trading hours: If you hold a Class 3A, 3B or 4 Licence, the trading hour restrictions only apply for alcohol sales to the public. For instance, if you run a wine shop and hold a Class 3A alcohol licence, you can only sell your wine to walk-in customers up to 10:29PM. This timing restriction explains all those signs you see in liquor stores informing you that alcohol sales will stop at 10:30PM sharp. However, if you’re delivering wine to private residences or establishments (e.g. a customer’s house), then you can continue to do so even after 10:30PM. This explains those late-night online alcohol delivery services that you might have come across!
Multiple licences allowed: You can hold multiple licences for your business. Let’s say you run a craft beer brewery. You can hold a Class 2B licence to sell your beer at your pub to walk-in customers. You can also hold a Class 4 licence to wholesale your craft beers to other F&B establishments. The only exception to this is if you already have a Class 2A or 2B licence, you will not be granted a Class 3A licence for the same premises.
Step 2: Meet 4 qualification criteria
The law sets out a list of qualifying criteria for persons applying for liquor licences. These criteria ensure that only fit and proper individuals are allowed to sell alcohol in Singapore.
You must meet all of the following criteria in order to be granted a liquor licence:
The 4 qualification criteria are:
You must have a business entity duly registered with ACRA (this can be any type of business entity, e.g. sole proprietorship, Private Limited, partnership, etc.)
You must be a Singapore Citizen, Singapore Permanent Resident, or at least have a FIN
You must be a director of the company, a partner of the partnership, or the sole proprietor of the sole proprietorship applying for the liquor licence
You must be a fit and proper person (most important criterion)
To be considered fit and proper, you must:
Not have been convicted or be under investigation for any criminal offence
Have a good track record of complying with the conditions of any liquor licence previously issued to you or a business that you are/were related to
Be cooperative with the Police regarding any investigation in connection with the liquor licence
Not have had any previous licence, permission or permit issued, cancelled or suspended
Because alcohol sales come under strict regulation in Singapore, there is significant emphasis placed on assessing whether liquor licence applicants are fit and proper. For each application, a Licensing Officer from the Police will assess your background to ensure there has been no unsavoury activities tied to the applicant.
Step 3: Apply online on GoBusiness Licensing Portal
The application process for the liquor licence is digital. It’ll take about 15 to 20 minutes.
Here are the steps to apply for the liquor licence online: Go to GoBusiness Licensing portal > Search “liquor licence” > Choose the licence you’re applying for
You will need supporting documents when applying for the licence. The required documents are:
If you run a hawker stall, you’ll need your hawkers licence
If you run a society, you’ll need your Registry of Societies (ROS) Certificate
Incomplete applications will be rejected, so it’s best to get these required documents ready in advance.
Timeline for application:
It’ll take about 3 weeks for you to know the outcome of your application. You’ll get an email, SMS, and physical mail notifying you of the outcome.
And that’s it! It’s a straightforward process to get a liquor licence.
Additional information on liquor licences:
Renewing your liquor licence:
All liquor licences are only valid for up to 1 year. Specifically, a Class 5 temporary licence is only valid for up to 30 days. Your licence will state the exact validity period.
You can renew your licence online, via the GoLicensing Portal.
What are the penalties for selling alcohol without a valid licence?
It’s an offence to sell alcohol without the proper licence. Under Section 15 of the Liquor Control (Supply and Consumption) Act, you can be fined up to $10,000.
Complying with the conditions of your liquor licence:
Once you’ve successfully gotten your liquor licence, you’ll need to comply with the conditions stipulated in your licence. The key compliance factors include the type of alcohol being sold, the times at which you can sell the alcohol, and where you can sell the alcohol.
For example, let’s say you run a wine bar. You hold a Class 1A licence. A Class 1A licence only allows you to sell liquor from 6AM to 11:59PM. If you continue to sell your wine to patrons past midnight, you would have violated your licence terms. This is an offence under Part 2 of the Liquor Control (Supply and Consumption) Act, and you could be fined up to $10,000. You could also get your licence revoked (which would be a death knell to your business model – what’s a wine bar without wine?). Also, you can only sell liquor within your wine bar premises – you can’t, for example, allow patrons to buy liquor for take-away. If you wanted to set up a wine shop within your wine bar, or offer the wine for take-away sale, then you would need to also apply for a Class 3A licence.
There are some key conditions imposed by the Liquor Control Regulations which a licencee must comply with:
Condition 1: No sub-leasing of licenced premises
You cannot lease your liquor-licenced premises to another tenant. This is to avoid abuse of the licensing system by those who do not qualify for liquor licences.
Penalty for breach: Up to $10,000 fine
Condition 2: No management of business by other parties
As the liquor licence holder, you must manage the business yourself. This prevents situations where liquor-licenced businesses end up being managed by parties who are not of fit and proper character.
Penalty for breach: Up to $10,000 fine
Condition 3: No storage of liquors off-site
You cannot store your liquor in another premises that has not been approved under your liquor licence. For instance, if your licence only permits liquor sale and storage at your pub, you cannot store your alcohol in some other warehouse – it’s got to be stored in your pub only.
Penalty for breach: Up to $10,000 fine
Condition 4: Restrictions on service staff employment
Singapore law prohibits liquor licence holders from employing waitresses under 17 years old, or individuals that you know are prostitutes.
Penalty for breach: Up to $10,000 fine
Condition 5: No selling alcohol to drunk patrons or those under legal drinking age
You can’t sell alcohol to customers who are drunk. If you see a customer getting tipsy after too many drinks, you should politely let them know they’d had too much to drink, and stop liquor service. You should also verify the age of patrons who you think are under the legal drinking age of 18. Selling alcohol to drunk or underage patrons is an offence.
Penalty for breach: Up to $10,000 fine
Condition 6: No allowing drunk or disorderly conduct, or gambling
You cannot allow drunk or disorderly behaviour at your premises. For instance, drunk patrons who create a public nuisance and harass other patrons will not only get themselves into trouble, they’ll also drag your business into trouble with the law. You also cannot allow gambling.
Penalty for breach: Up to $10,000 fine
Extending the hours you can sell alcohol
You can apply to extend your liquor trading hours (i.e. the times at which you can sell liquor).
There are two types of trading hour extensions:
Regular extension
Ad-hoc extension
Regular Extension Hours:
Regular extension hours will extend your trading hours throughout the year. For instance, a popular extension application involves extended trading hours for Fridays, Saturdays, and the eve of Public Holidays.
You will need to provide the following information when applying for regular extended hours:
Date you wish your extended hours licence to take effect
Number of extended hours you wish to apply for
Days and timings of the extended hours. For instance, if you run an online alcohol delivery service, you could apply for extended hours to deliver alcohol 24 hours a day, 365 days a year.
Ad-hoc Extension Hours:
Ad-hoc extension hours are one-off extensions. These are commonly used by those hosting events where alcohol will be sold.
You will need to provide the following information when applying for ad-hoc extended hours:
Date you wish your ad-hoc extended hours to take effect
Number of extended hours you wish to apply for
Day and timing of the extended hours. For instance, if you’re hosting a 2-day exhibition and want to sell alcohol to attendees, you would apply for extended ad-hoc hours for those 2 days.
Protecting your liquor business:
After you’ve gotten your liquor license, make sure that you protect your business. We offer the most affordable and comprehensive business insurance plans in Singapore. Click the links below to get insured online, in just 3 mins!
A board meeting is an important event where the company’s Board of Directors discuss issues that will have a significant impact on the business. These issues might involve decisions to hire/fire the CEO, acquire a new company, divest a portion of the company, declare dividends, and many more key actions.
#2. Why are Board Meetings held?
Some common reasons why board meetings are held include:
Board meetings, with their meeting minutes, provide a written record of the discussions held and reasons in support of key business decisions. This documentation is important for compliance purposes. Having a written record can also protect Board directors from potential lawsuits later on (e.g. lawsuits filed by shareholders) if the Board decisions negatively impact the company.
The Board wants to declare dividends.
The Board wants to review major strategic plans by management that will significantly affect the business as a whole.
The Board wants to set specific KPIs for management to meet. These KPIs may come with incentives for meeting those goals, and clawbacks for failing those goals.
The Board wants to set compliance and reporting standards that the business must adhere to.
The Board wants to fire the CEO.
The Board wants to select a new CEO.
The board wants to adjust compensation for the CEO.
The Board wants to acquire or merge with another company (M&A activity).
The Board wants to acquire or sell IP (intellectual property) rights.
The Board wants to raise additional capital by selling some of the company’s shares.
The Board wants to approve annual budgets and contracts (typically large contracts).
The Board wants to expand the company, e.g. into overseas markets.
The Board wants to implement or adjust the employee stock option plans (ESOPs).
The Board wants to downsize the business/conduct retrenchment, as the company is performing poorly.
If the Board has made a decision on an issue and they want to formalize this decision, they will pass what’s known as a Board resolution. A Board resolution is basically a proposal to do something (e.g. hire a new CEO). The directors will then cast votes on whether to support or reject the resolution. If a majority of the directors vote in favour of the resolution, the resolution passes. The Board will then take the steps outlined in the resolution.
#3. Can shareholders attend board meetings?
Yes, but only if the shareholders are invited to board meetings. If shareholders are not invited, then they do not have a legal right to demand entry into a board meeting. Shareholders have a legal right to shareholders/general meetings, but they do not have this same right to board meetings.
#4. How should I hold a Board Meeting? What are the procedures?
Board meetings are governed by your company’s Constitution. The company Constitution is a document that sets out the responsibilities, rights, and powers of the company’s directors and shareholders. It also specifies procedures on holding board meetings.
Unlike many other aspects of running a company, board meetings are not governed by the Companies Act. The Companies Act is the law governing all companies in Singapore. The Act does not specify regulations on board meetings. Therefore, the procedures, powers, and other obligations of directors in Board meetings will be ruled by your Constitution. This gives companies maximum flexibility in conducting their board meetings as they see fit.
We’ll outline how to hold board meetings in accordance with the Model Constitution. This will apply if your company has adopted the Model Constitution, which is one of the most commonly used company constitutions in Singapore. The steps here can also be found in paragraphs 83 to 94 of the Model Constitution.
Step 1: Director requests for the company secretary to schedule a board meeting
Any director may command the company secretary to hold a board meeting. Unlike with shareholder meetings, board meetings do not need to be held at least 14-21 days in advance. Board meetings can be held anytime, as long as directors are given ample advance notice of the meeting, along with sufficient time to prepare and review the agenda and any documents for the meeting.
Can a director be excluded from board meetings?
No. By law, you must notify all directors of upcoming board meetings. If you don’t, any decisions made during that board meeting will be invalid. The Singapore Courts have previously ruled that board meetings are only valid if notice is provided to all board directors. If you fail to notify to notify some directors, whether deliberately or not, that would be against the law, and that board meeting would be void.
Step 2: Board meeting must satisfy quorum requirement
A quorum of 2 directors is mandatory (unless your company’s constitution requires a higher quorum). A quorum is the minimum number of company directors who must be present at a board meeting, in order for the meeting to be considered valid.
If the number of directors who show up at the meeting is less than the quorum, then no decisions can be made. Any actions taken by directors at a meeting where a quorum is not met is invalid.
Who serves as chairman for the board meeting?
Usually, the chairman of the meeting is the chairman of the Board of Directors. However, if the chairman of the board is not present, the directors may elect another person to serve as chairman solely for the meeting.
Step 3: Discuss issues and, if needed, pass board resolutions
The Board of Directors can pass board resolutions during meetings. A board resolution is basically a formal decision undertaken by the Board of Directors. For instance, board resolutions are passed to declare dividends. To pass a resolution, simply hold a vote amongst the directors. If a majority of the directors agree, then the resolution is passed.
Some company constitutions may specify different voting thresholds to pass board resolutions. For instance, some constitutions may require 75% of all directors to support a resolution before it can be passed. Refer to your company constitution when in doubt about the exact % of votes needed to pass a resolution.
Important: Directors must declare vested interests/conflict of interests
If a director has a vested interest in any transaction, or proposed transaction, they must declare their interests. They also cannot vote on that matter in which they have a vested interest.
For instance, let’s say you are a director of Company A. A board meeting is held to discuss the possibility of Company A acquiring of Company B. You happen to own shares in Company B. Since you have an interest in this proposed transaction, you must take the following actions:
Declare to the board that you own shares in Company B
Abstain from voting on any board resolutions related to acquiring Company B
It is a crime for directors to not declare an interest in transactions. Under the Companies Act, offenders can be jailed and/or fined!
What happens if there is a tie in votes?
If the votes for the board resolution come to a 50-50 stalemate, then the chairman of the meeting will cast the final vote. This will be the tie-breaking vote.
What happens if there is only one director in the company?
Sole directors can simply hold board meetings themselves, and pass board resolutions by themselves.
Constitutions other than the Model Constitution
If you’re using a company constitution that’s different from the Model Constitution, you’ll have to follow your own procedures to conduct board meetings as outlined in your constitution.
However, any well-drafted constitution will almost always set standards on the following points for conducting board meetings:
Giving proper notice of board meetings to all directors
Specifying the quorum required for valid board meetings
Voting threshold required to pass board resolutions
Procedure to appoint a chairman for the board meeting
Recording minutes of board meetings
#5. Keeping minutes of board meetings
Minutes are a summary of the key issues and actions taken during a meeting. Keeping a comprehensive and accurate list of minutes for all your board meetings helps to provide clarity into what decisions were made, who made those decisions, and why they were made. Minutes therefore serve as important tools for ensuring compliance, and also help to protect boards from legal action if other parties were to make accusations that improper decisions were made.
Keeping minutes of board meetings is a legal requirement in Singapore. Under Section 188 of the Companies Act, all board meetings must have minutes recorded. These minutes are to be recorded and filed within 1 month of the board meeting. The company secretary is usually the one responsible for recording minutes. After minutes are recorded, they will be signed off by the chairman of that meeting, and then entered in the company’s records for safe-keeping.
It is a crime to not record minutes for board meetings. Both the company itself and company directors can be fined up to S$2,000 each.
Sample board meeting minutes template
Board Meeting Minutes
Administrative Details
Meeting date:
Meeting time:
Meeting called by:
Meeting chairman:
Timekeeper:
Note taker:
Directors in attendance:
Meeting Minutes
Agenda item 1
Discussion notes:
Conclusions:
Agenda item 1 list of action items
Action item description
Person responsible
Deadline
Action item 1:
Action item 2:
Action item 3:
#6. What are some good ways to limit potential legal liabilities of board directors during board meetings?
#1. Directors should perform due diligence before board meeting and when reviewing proposals:
Prior to the board meeting, all directors should conduct due diligence on the issues set out in the agenda. This is to ensure that directors have the depth of background knowledge on the set of issues being discussed to make good decisions. Making decisions without having done proper due diligence can lead to lawsuits against the directors, if those decisions turn out poorly for the company.
#2. Director must declare potential conflicts of interest:
It’s critical that directors declare any potential conflicts of interests they have in matters that come up in board meetings. Conflicts of interest are a real legal minefield. You don’t want to fail to disclose (whether deliberately or accidentally) a potential conflict of interest, only to have it surface later. This can be cause for lawsuits (e.g. from shareholders alleging that you were serving your own interests, rather than the company’s interests). It also happens to be a criminal offence, with penalties including a prison term of up to 2 years, or a fine of up to $100,000.
What legal consequences can directors face if board meetings are not conducted properly?
If board meetings are not properly held, and mistakes are made by the directors that cause the company to suffer losses, then you can expect to get hit by lawsuits. Such lawsuits are often filed by shareholders, who ultimately are the ones who elect and remove directors. When directors are sued personally, there is no limitation of liability (that means that even if you’re a director at a Private Limited, limitation of liability protections will not apply). Directors who are sued personally will have their all personal assets (e.g. your house, car, money in your bank) fully exposed to legal claims.
#7. Protecting your business and board directors:
It’s critical that you protect your business and your board of directors comprehensively! Remember that when business lawsuits happen, it’s too late get lawsuit insurance protection. The best time to get protected is right now, before anything unfortunate happens.
Provide is the easiest way for businesses to get insured in Singapore. Simply click the links below to purchase your cover online, in just 3 minutes!
Covers a wide variety of business lawsuits: customer lawsuits, business partner lawsuits, negligence lawsuits, errors & omissions lawsuits, IP infringement lawsuits, breach of confidentiality lawsuits, etc.
Covers a wide variety of lawsuits against board directors & officers: customer lawsuits, business partner lawsuits, employee lawsuits, shareholder lawsuits, etc.
A Certificate of Incorporation is a basic legal document that’s issued when you form a company in Singapore. In this comprehensive guide, we’ll go over the 6 most important things that every business owner should know about these certificates, namely:
What is a Certificate of Incorporation?
Who issues the Certificate of Incorporation?
What information does a Certificate of Incorporation contain?
Why is the Certificate of Incorporation important?
How do I get a Certificate of Incorporation in Singapore?
How do I verify the authenticity of a Certificate of Incorporation?
#1. What is a Certificate of Incorporation?
A Certificate of Incorporation is an official document that proves your company has been legally registered and formed in Singapore. It is legal proof that your company has met all the regulatory requirements to form a company.
The certificate is issued by ACRA (Accounting and Corporate Regulatory Authority). ACRA is the government body responsible for regulating formation and compliance matters of all companies in Singapore.
You will get 1 free copy of your Certificate of Incorporation when you first register your company. This Certificate of Incorporation will be emailed to the contact person, and company officers, that you submit to ACRA during the company incorporation process.
#3. What information does a Certificate of Incorporation contain?
The Certificate of Incorporation will state:
Company name
Unique Entity Number (UEN)
Incorporation date
Type of company (e.g. Private Limited, LLP, Sole Proprietorship, etc.)
Former names of your company, if applicable (only the 5 most recent names will be listed)
Authentication number and QR code for other parties to verify your Certificate of Incorporation’s authenticity
#4. Why is the Certificate of Incorporation important?
Some business transactions will require you to provide your company’s Certificate of Incorporation.
Entering into contracts with clients who need to verify your company’s legitimacy
#5. How do I get a Certificate of Incorporation?
When you first register your company, you will receive 1 free copy of your Certificate of Incorporation via email. This is emailed to the officers of the company and the contact person who’s handling the incorporation process.
This free Certificate of Incorporation will be unsigned. Some business transactions may require you to show a signed copy of your Certificate of Incorporation. For instance, some banks may require a signed Certificate of Incorporation to open a company bank account for you. To get a signed certificate, you’ll need to purchase a Certificate of Incorporation from ACRA.
Also, if you need to download an updated copy of your Certificate of Incorporation, or if you’ve somehow lost your certificate, then you can purchase your Certificate again.
It only takes 3 steps to buy your Certificate of Incorporation:
Step 1: Log in to BizFile+
BizFile+ is an online portal managed by ACRA, which provides various business services for companies.
Step 2: Go to “Buy Information”
Step 3: Make payment
The fee is SGD $50.
Step 4: Download signed Certificate of Incorporation
You’ll get an email within 15 minutes with a link to download your signed Certificate of Incorporation.
Who is allowed to buy the Certificate of Incorporation?
You cannot just ask anyone in your company to purchase the certificate. Only the following individuals in your company are allowed to purchase the certificate:
Company officers
Business owners
Authorised representatives
Authorised corporate secretaries
Goup secretary
For LLPs and LPs: partners or managers
These restrictions are meant to avoid potential fraudulent use of your certificate. For example, you wouldn’t want any of your employees purchasing your certificate, and then using it to surreptitiously open a bank account under your company’s name for malicious purposes.
What is the fee to buy the Certificate of Incorporation?
It costs SGD $50 for each Certificate of Incorporation.
I’ve lost my incorporation documents – how do I find my Certificate of Incorporation?
If you incorporated your company after 31st May 2018, your Certificate of Incorporation would have been emailed to you. Search your inbox or spam folder for it.
If you incorporated your company before 31st May 2018, and previously had a hard copy of your certificate, you can purchase a new copy of your certificate.
Can I purchase a hard copy of the Certificate of Incorporation?
No. ACRA has stopped issuing hard copies of the Certificate of Incorporation since 31st May 2018. All Certificates of Incorporation are now issued electronically only.
Some other sites may advise you that there are hard copy services available –this is outdated information, unfortunately.
What’s the processing time to receive my certificate?
After you’ve made payment, you’ll get an email from ACRA within 15 minutes. This email will contain a link to download your certificate. It’s a fairly quick process.
#6. How do I verify the authenticity of a Certificate of Incorporation?
Sometimes when dealing with another business, you may want to find their incorporation certificate as part of your due diligence process. Or you may also have business partners who want to verify your certificate’s authenticity. There are 2 methods to verify a Certificate of Incorporation:
Method 1: Scan the QR code on the certificate. If it’s real, this will send you to a page verifying its legitimacy.
Method 2: Enter the UEN and Authentication Number (both found on your Certificate of Incorporation) at this Product Authentication page. The results will tell you whether it’s fake or real.
Verifying a certificate’s authenticity is 100% free.
Protecting your business:
After you incorporate your company, make sure you protect it! Provide is the easiest way for businesses to get insured in Singapore. Simply click the links below to purchase your cover online, in just 3 minutes!
Covers a wide variety of business lawsuits: customer lawsuits, business partner lawsuits, negligence lawsuits, errors & omissions lawsuits, IP infringement lawsuits, breach of confidentiality lawsuits, etc.
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