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.
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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 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!
Companies may lend money to directors as a gesture of goodwill. Directors can apply for company loans to obtain more favourable interest rates than what financial institutions, like banks, could offer them. Company loans, if approved, also will likely have less stringent underwriting requirements compared to banks. Directors may also need loans in case of personal emergencies, or require the money to meet expenses in order to carry out their directorial duties (e.g. transport expenses).
What is considered a company “loan”?
The definition of company loans do not just include standard loans – i.e. a sum of money handed over with a promise for repayment. Singapore law also defines company loans to include:
#1. Quasi loans:
This is a transaction where the company pays expenses incurred by the director, with the understanding that the director will reimburse the company later on.
#2. Credit transactions:
Examples of credit transactions include:
Renting out housing or land to directors (e.g. a bungalow for the director to live in), in exchange for payments
Providing goods and services to directors (e.g. chauffeur service, grocery hampers, laptops, etc.) in exchange for payments
Basically, this involves the company providing goods, services, or property/land use in return for payments from the director.
#3. Guarantees to directors:
These refer to the company providing a guarantee or security for a loan, quasi-loan, or credit transaction made for the benefit of a director. For instance, if the company agrees to act as a corporate guarantor for a personal loan that the director takes on, that would count as a guarantee to a director.
Can a company make loans to its directors?
It depends on whether the director is a shareholder, or not.
If the director is not a shareholder: Generally, no. Company loans are only allowed under 4 specific circumstances (outlined below). All other company loans that do not meet these 4 requirements are not allowed.
If the director is a shareholder: Yes, company loans are generally allowed, subject to some requirements.
Company loans to directors who are also shareholders
Companies may make loans to directors who are also shareholders. Some requirements that you must bear in mind are:
You must hold a Board meeting, and pass a Board resolution to approve the company loan to the director-shareholder. This means that a majority of the Board of Directors must agree to the loan. You must document that the company loan provided to the director-shareholder has been given because of their status as a shareholder.
Company loans cannot be made in order for the director-shareholder to reduce their tax liabilities (e.g. as opposed to paying the director-shareholder a director’s fee, director’s salary, etc.)
There must be an IOU or some other official document to record the company loan, with a repayment schedule. You must create a debtor-creditor relationship. You cannot just make a company loan knowing that the director-shareholder has no intention of paying back the money.
If the company has previously extended loans to other shareholders, then the loan terms (e.g. interest rate, any collateral, repayment schedule etc.) should be similar. Loan terms should not be biased in favour of director-shareholders just because the have a seat on the Board.
Restrictions on company loans to directors include the directors’ family members
Restrictions on company loans to directors include not only the directors, but also the director’s family members, who include the director’s spouse, children (including adopted children) and step-children.
Why are there strict restrictions on company loans to directors?
These safeguards exist because directors are supposed to represent the interests of the company, and shareholders. Company loans that are made to directors (particularly generous loans, at zero or very low interest rates) may adversely influence the objectivity of directors. Unscrupulous management teams may use company loans to buy favour from directors. It is therefore a matter of good corporate governance and public policy to ensure that company loans are only made to directors under a strict set of guidelines. This helps to protect shareholder interests, and minimises the possibility of directors being bought over by management.
What are the requirements to make company loans to directors?
Company loans made to directors who are not shareholders are only allowed under a narrow set of 4 reasons.
The 4 reasons where company loans to directors are allowed are:
Reason 1: Loan to pay director’s necessary expenses
The company loan is made to the director to pay expenses needed to fulfill the director’s duties. This loan must be approved in a shareholder’s meeting.
Reason 2: Loan to purchase housing for director
If the director is a full-time employee of the company or a related company, and the loan is specifically for the director to purchase a house to live in. This loan must be approved in a shareholder’s meeting.
Reason 3: Loan as part of employee benefits scheme
If the director is a full-time employee of the company or a related company, and the company loan is part of a company-wide employee benefits scheme. This means that company loans must also be made available to other employees, and not just the directors. Company loan benefit schemes must be approved in a shareholder’s meeting.
Reason 4: Loan as part of money lending business
If the company’s primary business involves money-lending, and the loan to the director is made by the company conducting its primary money-lending activities. Money lenders must have the relevant licenses from the authorities. This loan does not need to be approved in a shareholder’s meeting, since it is simply the company conducting its primary business.
How do I approve a company loan to directors?
Step 1: Arrange a shareholder meeting
Arrange a shareholder meeting at least 14 days in advance. If you receive at least 95% approval from shareholders, you can do away with this 14-day-advance-notice requirement, and you can hold the meeting earlier.
Step 2: Pass an ordinary resolution authorising the company loan to directors
An ordinary resolution is basically a shareholder vote. You must receive over 50% of shareholders’ votes in order to pass the ordinary resolution to make the company loan. During this meeting, you must disclose the purpose and amount of the loan.
Step 3: Disburse the company loan
Once shareholder approval has been granted, the loan can be disbursed to the directors.
Additional conditions for company loans
If shareholder approval has not been obtained for the company loan, then the loan must be repaid in full within 6 months of the next Annual General Meeting.
Also, if shareholder approval was not sought before the company loan was made, then the directors who receive the loan become personally liable for any losses the company suffers as a result of making the loan. For instance, if the loan amount was particularly large, and the company was unable to meet its expenses (e.g. payroll, marketing, R&D, etc.) and suffered a loss, the directors must repay the company for these losses.
What happens if directors do not adhere to these rules on company loans?
There are strong penalties in place to punish directors who make company loans illegally. It is a criminal offence for any director who authorises a company loan that does not meet the requirements explained above. According to the Companies Act, such directors can be jailed up to 2 years, or fined up to $20,000.
Interest rates on company loans to directors
There is no legal requirement for interest to be charged on company loans to directors. You can have 0% interest, or charge any other interest rate you wish.
Tax implications for company loans to directors
If the company loan is interest-free, or has an interest rate lower than the average prime-lending rate, then such company loans may be taxable. Whether or not such a loan is taxable depends on whether the director receiving the loan is a shareholder of the company.
Director receiving loan is NOT a shareholder:
For income tax purposes, company directors are considered as company employees, even if they don’t hold full-time employee positions. Therefore, any interest benefits that such directors receive from company loans are viewed as an employment benefit, and are therefore taxable.
The formula for calculating the value of the interest benefit:
Amount of loan outstanding (at end of each calendar year) * Average prime-lending rate of each calendar year
Director receiving loan is a shareholder:
If a company loan is made to a director-shareholder in their capacity as a shareholder, then they would not be deemed to be employees for income tax purposes. As such, no taxes need to be paid on interest benefits for company loans.
Making company loans to shareholders
There are no restrictions in Singapore law for companies making loans to their shareholders.
With that being said, company directors have a fiduciary duty to serve the best interests of the company. Directors must properly evaluate whether company loans to shareholders will serve the best interests of the firm.
Interest rates for company loans to shareholders
The company has discretion over what interest rate to charge shareholders. There is no legal requirement to charge interest. The company is free to provide interest-free loans, or to charge whatever rate they see fit.
Tax implications for company loans to shareholders
Shareholders receiving company loans do not need to pay tax on any interest benefits they receive.
Directors must act honestly and exercise due skill, care, and diligence when taking company loans
Directors also have a fiduciary duty to act with due skill, care, and diligence. This means that they must not take company loans if they can reasonably expect these loans to harm the best interests of the company. For instance, if a director knows that the company will need all the money it can muster for R&D in the next 12 months, then the director should wait till a later point in time before applying for a company loan.
Directors who breach this duty to act honestly and with due skill, care and diligence can be sued by their shareholders. Furthermore, directors can have criminal charges filed against them – punishments include being jailed for up to 12 months, and/or being fined up to $5,000.
Beware of shareholder lawsuits against directors for company loans
Shareholders may sue directors for improper loans. Loans don’t even have to actually be improperly disbursed for lawsuits to occur – shareholders can allege that improper loans were made, and initiate legal action against company directors. Defending such legal action is extremely expensive and stressful. It’s therefore important to carry Directors and Officers (D&O) Liability Insurance to protect directors against potential lawsuits. Directors & Officers Insurance would protect directors against such lawsuits. This type of insurance would pay for lawyer’s fees and damages/settlement amounts, which can easily add up to several hundred thousand (or even millions!) of dollars.
Protecting your company:
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!
An LLP (Limited Liability Partnership) is a type of business that is owned by at least two partners. Partners can be private individuals, or corporate entities (e.g. a Private Limited company). Corporate entities can either be local companies or foreign companies.
Is an LLP a separate legal entity?
An LLP possesses its own separate legal entity from its partners. This is somewhat similar to Private Limited companies. This separation of legal entities means that partners in an LLP are generally protected from legal liability if the LLP is sued. Partners in an LLP are protected from liabilities incurred by other partners in the partnership. This is particularly important because you don’t want to be caught in a situation where one of your partners makes a mistake and gets sued and then drags you into the lawsuit. The major exception to this limitation of liability is for a partner’s own mistakes, negligence, omissions, and debts incurred, which we discuss in greater detail later on.
This limitation of liability is a critical factor in why many entrepreneurs who are thinking of incorporating a partnership will choose an LLP, instead of a plain-vanilla Partnership.
What types of businesses typically incorporate as an LLP?
Usually, only certain types of licensed & highly specialised professional services will incorporate as an LLP. These businesses include accounting/auditing firms, architectural firms, and legal practices. Most other services will incorporate as Private Limiteds.
In other countries like the US, it’s standard practice for investment funds, like Venture Capital funds, to incorporate as LLPs. This is because when dividends are distributed from profits that the fund makes, partners in an LLP are only taxed once (at their personal income tax rate). If the investment fund had been incorporated as a Private Limited entity, they would be double-taxed – taxed once at the corporate tax rate, then taxed another time at the personal income tax rate when paying out dividends. This is not a concern in Singapore, however, since dividends are not subject to personal income tax.
What are the pros and cons of LLPs?
Pro #1. Limitation of liability for other partners’ mistakes:
Partners in an LLP are not responsible for liabilities incurred by other partners. For instance, let’s say you are a partner in an Accountancy LLP. Two of your partners are working on a major client account, and they end up making major mistakes in an auditing project. The client sues the LLP for losses incurred due to these mistakes. You are not liable for the liabilities that your two other partners have incurred. If you had been part of a regular Partnership, then you would have become equally liable, and your personal assets (e.g. bank savings, house, car, etc.) would be fair game for litigants. However, in an LLP, you are protected from this liability, and your personal assets would remain safe in this example.
Pro #2. Perpetual existence:
An LLP, just like a Private Limited, will continue to exist forever, unless it is wound up, or becomes insolvent. This characteristic of perpetual existence makes it easier to pass the business on to other owners. For example, a family-owned LLP can pass ownership of the business on to the next generation. This is quite different from a partnership or a sole proprietorship, which ceases to exist when the owner(s) pass(es) away.
Pro #3. Relatively simple compliance requirements:
LLPs only need to lodge a Declaration of Solvency with ACRA each year. Also, LLPs will need to keep accurate accounts of all transactions made and their financial position, which any properly-functioning business would have anyway. These statements must be kept for at least 7 consecutive years, but they do not need to be filed yearly with ACRA.
Compliance requirements for an LLP are therefore simpler compared to a Private Limited entity. Compared to Private Limiteds, LLPs do not need to appoint company secretaries, hold AGMs, file annual returns with ACRA, have their accounts audited, etc. This saves the partners in an LLP both time and money when managing their business. Of course, given how simple requirements are for running a Private Limited, these cost and effort savings for compliance are not tremendously huge.
Con #1. Limitation of liability does not extend to mistakes made by you:
The limitation of liability only applies to liability incurred by other partners in the LLP. This limitation of liability does not include errors, omisssions, negligence, mistakes, or other liabilities incurred by you.
Con #2. No corporate tax benefits:
Partners in an LLC are taxed at their personal income tax rate. LLPs do not benefit from corporate tax rates which in Singapore 10 to be lower than personal income tax rates.
Con #3. Must always maintain at least 2 partners:
You must maintain a minimum of 2 partners in the LLP at all times. If you only have 2 partners, and you end up having a major disagreement with your sole partner and they threaten to leave, that could pose an existential problem unless you can find a replacement partner.
Con #4. Partners can enter into contracts without the consent of other partners:
Individual partners in an LLP can enter into contracts or other business agreements with others, without the need to first obtain consent from other partners in the LLP. This can be quite dangerous if the interests of the LLP partners are not aligned properly, and a partner potentially goes rogue.
Con #5. More difficult to transfer ownership or sell the company:
It is more difficult to transfer ownership in an LLP because any business assets, IP, licenses, permits, etc., must be transferred on an individual basis. The entire LLP, and all its assets, cannot simply be sold as one whole entity. This is quite different from a Private Limited, where the entire entity can simply be sold in one go, as long as sufficient shareholder consent is sought. If you want the flexibility to gain a nice exit from your company later on, incorporating an LLP may not be the most suitable option for you.
3 Steps to Register an LLP in Singapore
Step 1: Reserve your LLP name
Login to BizFile+. Apply to reserve your name. The name reservation fee is SGD $15.
In order to make sure that your name application is approved as quickly as possible you should bear the following points in mind:
Do not use vulgar, sexually suggestive, or rude names
Do not use reserved names, like “Temasek”
Do note use names that are the same or very similar to existing company names, or names that are already reserved
If you use certain words in your name (for example, “school” or “bank”), then your name application will be referred to the relevant Ministries for further approval. This will delay your name reservation
Once your name has been approved, it will be reserved for you for 120 days. You must then incorporate your LLP within this 120-day time frame. If you do not incorporate your LLP within this timeframe, your reserved name will be released. You will have to go through the whole reservation process again (and that includes paying the $15 fee once more).
A note on naming of LLPs
All LLPs in Singapore must have either the words “Limited Liability Partnership” or “LLP” in their name.
Step 2: Register your LLP
Log on to BizFile+ to register your LLP. The registration fee is SGD $100.
You will require the documents discussed earlier (under the section “What documents are required for registering an LLP). To save you from scrolling up, here are the required documents:
Approved LLP name
Personal particulars of all the LLP’s partners (name, identification/passport number, residential address, phone number, email)
If the partner is another company, you must have the company name, company registration number, country of registration, and company address
Declaration of compliance
Registered business address for the LLP
Signed consent to act as manager and statement of non disqualification to act as manager
ACRA will take about 15 minutes to process your LLP incorporation.
Step 3: Download your business profile
Upon successful registration, ACRA will email the appointed contact person with a free copy of your ACRA business profile. You’ll need this business profile to set up a corporate bank account, amongst other things.
FAQs on LLPs
Is there a limit on the number of partners in LLP?
No. There is no limit to the number of partners you can have in an LLP.
How can a new partner join an LLP?
Admitting a new partner to an LLP requires the consent of 100% of all existing partners.
How are decisions made in an LLP?
Decisions are governed by the Limited Liability Partnership Agreement. Most Limited Liability Partnership Agreements will state that decisions are to be made via a first-past-the-post vote (i.e. majority votes). Some partnerships may set varying standards for decisions to be made, for instance requiring 2/3 votes for certain major decisions.
Can a partner leave an LLP?
Yes. Methods of leaving an LLP are generally governed by the Limited Liability Partnership Agreement, if there is one. If the partners did not sign such an agreement while operating the LLP, then a partner can give 30 days written notice to other partners informing them of their decision to leave.
Can foreigners register LLPs in Singapore?
Yes. However, foreigners who want to incorporate an LLP must appoint a locally resident LLP manager (e.g. Singapore citizen, PR, or EntrePass/Employment Pass holder) to do so. Also, foreigners must appoint a registered filing agent (such as a corporate secretarial company, or law firm), to complete the incorporation process for them.
Can foreigners be partners in an LLP?
Yes. There are no restrictions on foreigners joining Singapore LLPs as partners.
Must I renew my LLP registration?
No. Once you’ve incorporated your LLP you do not need to renew your incorporation. Your LLP will exist forever unless you choose to wind it up, or the LLP becomes insolvent.
Must an LLP file corporate income taxes?
No. LLP profits are not taxed at corporate rates, so there is no need to file an LLP annual tax return. Instead, each partner in an LLP will file their own personal income taxes for payments/profits they received from the LLP.
Can an LLP apply for a bank loan?
Yes. However, LLPs are generally not viewed as favourably as Private Limiteds. This may potentially affect the terms of any bank loans you apply for.
Can an LLP own property?
Yes. Just be aware that if you buy a property under an LLP, that property’s ownership now rests with the LLP. If you want to sell that property later on, you will have to get the consent of a majority of partners. Getting this consent may not be so easy if the partners have differing views on what to do with the property.
Does an LLP have shares?
No. An LLP does not have shares in the way a Private Limited company does. However, it is possible to have partners receive varying levels of profit. Let’s take a simple example. An LLP providing architectural services has 3 partners. Partner A invests $600,000, Partner B invests $300,000, and Partner C invests $100,000. Partner A would therefore be entitled to 60% of the LLP’s profits, Partner B would be entitled to 30% of the profits, and Partner C would be entitled to 10% of the profits. Such an arrangement for differentiated profit sharing must be set out clearly in a Limited Liability Partnership Agreement, to minimise disputes later on.
It’s also best to speak with a lawyer to draft out a good Partnership Agreement. This is because in the absence of a Partnership Agreement, Singapore law sets out a default list of rules governing profit-sharing and voting power in LLPs. This is found in the First Schedule of the Limited Liability Partnerships Act. The Act specifies that profits are to be equally split amongst partners. Also, each partner is entitled to one vote. Under these default rules, this equal splitting of profit and one-person-one-vote arrangement stands regardless of the quantity of initial investment. This means that if you invested more than your other partners, the default rules would not reward you. If you don’t want to have these default rules in place, have a Partnership Agreement in place before you start your business!
Can other partners vote to kick out a partner?
Yes, but only if such a power has been agreed upon in a Partnership Agreement. If you have a Partnership Agreement, and the Agreement states that a majority of partners can vote to expel a partner, then you can proceed to do so.
However, if no such power has been granted in the Partnership Agreement (or if there isn’t even a Partnership Agreement), then other partners cannot vote to remove a partner. This is true even if a majority of partners agree to such a removal. In such a scenario, you’re pretty much stuck. You can choose to either buy out the troublesome partner, or start a new partnership.
What are the compliance requirements for LLPs?
Filing annual Declaration of Solvency
You will have to file a Declaration of Solvency with ACRA within 12 months after you first incorporate your LLP. Thereafter, you must file a Declaration of Solvency at least once every 15 months.
Keeping accurate financial records
Financial records of all transactions must be kept for at least 7 consecutive years. You should hire a bookkeeper to ensure your accounts are all in order.
Partners must pay taxes on payments received from LLPs
The profits that each partner in an LLP receives are taxed at their personal income tax rate. There is no corporate tax for LLPs.
Appointing an LLP manager
All LLPs must appoint at least one partner to be a manager. Managers are responsible for ensuring that the LLP maintains compliance with all relevant laws in Singapore.
A manager must be:
At least 18 years old
A natural person (i.e. an individual, and not a company)
Ordinarily resident in Singapore
If there are any compliance breaches, LLP managers will face personal liability for these breaches. They must answer for these lapses to the relevant authorities.
Maintain official business address
All businesses in Singapore must maintain an official business address. Now, you don’t actually need to rent an office just to meet this requirement. There are plenty of virtual offices that you can use who will provide you with an address. These companies also usually offer additional business services such as mail forwarding, mail scanning, etc. Some of these virtual offices will even have meeting rooms for you to book so you can host clients or business meetings.
Clearly state company name and UEN on all business communication
As with all businesses in Singapore, LLPs must state their official business name and UEN on all business communications. This includes letters, invoices, quotes, and other correspondences.
Alert ACRA promptly if any changes are made to the LLP
If there are any changes to the LLP (e.g. change in partners’ details, change in business address, etc.), these changes must be reported to ACRA within 14 days from the date of change.
How do I close/wind up an LLP?
You can go on to BizFile+ and complete an application to wind up the LLP.
Protecting your LLP in Singapore:
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!
If you run a business in Singapore you have probably thought about paying yourself dividends. The process can be a little confusing, so we’ve put together a step-by-step guide on how to pay yourself and other shareholders corporate dividends. There are also some important rules that you need to follow when paying dividends in Singapore. If you breach these rules, you can incur serious legal liability and even imprisonment.
We’ll explain:
When can I pay dividends?
What types of dividends are there?
How do I declare dividends?
What are the implications of declaring a dividend?
Important facts about declaring dividends
How are dividends taxed in Singapore?
Do dividends create a corporate tax shield?
When can I pay dividends?
You can only pay dividends if your company makes a profit.
You cannot pay dividends if your company has made a loss. Doing so is a crime, which can create both criminal and civil liabilities!
Criminal liability for illegal dividend payments:
Under Section 403(2) of the Companies Act, the illegal payment of dividends is punishable by up to 1 year in prison, and/or a fine of up to $5,000.
Civil liability for illegal dividend payments:
On top of criminal punishments, directors who approve dividend payouts when there are no profits can also be liable to their company’s creditors for any debts owed. Directors can be held personally liable for these debts, meaning that creditors can claim the directors’ personal assets (e.g. house, car, bank savings, etc.) to repay money that’s owed.
Also, shareholders can also sue directors who approve illegal dividend payments. These lawsuits can allege breach of fiduciary duty or negligence. If the director(s) being sued lose their case, their personal assets can be claimed by shareholders to repay damages that are awarded by the Courts.
These riminal and civil liabilities can follow directors even after directors leave their positions. Unless you want to pay huge sums of money from your own pocket, don’t declare dividends illegally!
What types of dividends are there?
The two types of dividends in Singapore.
Final dividends:
These are dividends declared during the company’s AGM, after the company’s financial statements have been shared, and annual profits have been confirmed for the year. Once a final dividend has been declared, it cannot be canceled or modified in any way.
Interim dividends:
These are dividends declared before a company’s AGM is held, which also means that animal financial statements have not been confirmed for the year. Interim dividends can be declared any time between two AGMs.
How do I declare dividends?
Step 1: Have the board of directors declare a dividend payment
The Board of Directors should declare that dividends should be paid in this particular year, and state exactly how much in dividends should be paid.
Step 2: Pass an ordinary resolution to approve the dividend payment
Prepared a written resolution stating how much dividends are to be paid out. Organise a shareholders meeting at least 14 days in advance. If you receive at least 95% shareholder approval you may hold the meeting at a date earlier than 14 days in advance.
At the meeting, put the resolution to pay dividends to a vote. Since this is an ordinary resolution, you must receive at least 50% of all shareholders’ votes. If you receive at least 50% of the votes the ordinary resolution has passed. You may now proceed to pay out the declared dividends.
Step 3: Prepare the dividend voucher, and pay the dividend
A definite voucher is basically a dividend receipt. It helps shareholders and the company keep documentary evidence that dividends were paid and received. Dividend vouchers should state:
Name of shareholder receiving dividend
Address of shareholder receiving dividend paragraph name of company issuing dividend
Address of company issuing giving you paragraph date of dividend paid
Never shares held by shareholder receiving do you paragraph dividend payment cash a
Total dividend paid
Signature of official company officer usually a bold director
Send the dividend voucher to each shareholder who is receiving a dividend when you make the payment.
What are the implications of declaring a dividend?
The implications differ, depending on whether you’re declaring a final dividend, or interim dividend.
Declaring a final dividend creates a legal obligation to pay shareholders. A final dividend is a debt. Therefore, if you’ve declared a final dividend, you cannot simply renege on your declaration. You also cannot reduce the final declared dividend.
Only final dividends create a legal debt. Interim dividends do not create debts so interim dividend can be Revolt canceled all modified without the same degree of legal entanglement. of course changing declared and trim dividends can leave shareholders quite upset so it is best to stick to declared interim dividend amounts.
Additional facts about declaring dividends:
Shareholders and their right to receive dividends:
Shareholders do not have the right to demand dividends. Unless the company’s Constitution allows shareholders to demand dividends (which would be a very strange exception), shareholders cannot force a company to pay them dividends. For instance if a shareholder has a 10% ownership stake, that shareholder cannot simply demand 10% of the company’s profits simply because he owns a portion of the company. The Board must first declare dividends, and then a majority of shareholders must agree to pay out dividends, as outlined in the steps above.
Availability of profits:
Profits only need to be available on the date that the dividends were declared. Profits do not need to be available at the time that dividends are paid.
Dividends and liquidation:
If the company is insolvent and is being liquidated, dividends cannot be paid. Paying out dividends would prejudice the rights of debt holders while favoring Equity holders.
How are dividends taxed in Singapore?
Dividends are generally exempt from tax in Singapore. This makes running a business in Singapore particularly attractive.
Do dividends create a corporate tax shield?
No. Dividends are paid out of net income after tax. Dividends are not an expense line item, so they do not reduce your Earnings Before Interest and Taxes (EBIT). Therefore, dividends do not reduce your corporate tax burden.
Remember to protect your business and directors:
It is vital that you protect your company from the myriad of business risks that exist. A business lawsuit could cost you hundreds of thousands to millions of dollars. A fire at your business premises could wipe out hundreds of thousands of dollars in investment. A slip and fall by a customer while in your business premises could result in expensive personal injury claims. You should also protect your company directors and officers – any lawsuit targeting them would immediately expose their personal assets (a real nightmare scenario!)
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!
Singapore is an excellent place to start a business, and private limited companies are one of the most popular types of companies that entrepreneurs will start here. Are you thinking of starting your own private limited company in Singapore? We’ve written this guide to walk you through the entire process from start to finish.
What is a private limited company?
A private limited company is a separate legal entity from its shareholders. It is a company “limited by shares”, meaning that, in most cases, the liability of shareholders is limited to the value of their shares (i.e. the amount of money they’ve invested in the company).
This limitation of liability is a crucial point because it protects shareholders from legal liability incurred by the company. The personal assets of a private limited company’s owner are kept separate from the company’s. This is one of the key reasons why most entrepreneurs choose to start a private limited company, compared to other forms of companies like sole proprietorships or partnerships.
In other countries like the US, private limited companies are alternately known as corporations, incorporated entities (“Inc.”), or limited liability companies (LLCs).
What are the pros and cons of a private limited company?
Pros of private limited companies:
Limited liability:
This is the most important advantage of starting a private limited company. The personal assets of shareholders are generally protected from lawsuits that target the company. This is quite different from other types of businesses like sole proprietorships, where the company’s assets and the owner’s personal assets are fully exposed to any legal claims. However, these limitations of liability have their own restrictions, which we discuss shortly in the next section on the “cons” of private limited companies.
Easy to set up:
You can set up a private limited company with just 1 shareholder. This is much easier than the 7 shareholders required for public limited companies.
Easy to transfer shares:
You can easily transfer shares from one shareholder to another. This ease of ownership transfer also makes it easier to raise funds from investors, and provides greater liquidity for shareholders.
Perpetual existence:
A private limited company is Will exist forever unless it is shut down it is therefore relatively easy to pass on ownership of the company EG to your family members if you no longer wish to run it or if you pass on
Cons of private limited companies:
Limited liability protections are not absolute:
It’s worthwhile to note that the limitation of liability is not absolute. Limited liability protections can be cast aside by the Courts (called “piercing the corporate veil”, in legal terms) in cases that involve dishonesty. This includes actions by shareholders such as fraud, running the company while insolvent, taking on debts with no intention of repayment, and more.
Limited liability protections do not extend to lawsuits filed directly against directors & officers:
Limited liability protections only cover the company. They do not cover directors and officers against lawsuits filed personally against them. That’s why Directors & Officers Liability Insurance is so important.
What are the key requirements to start a private limited company in Singapore?
At least one shareholder (either a private individual or a corporate entity)
At least one company director ( ordinarily resident in Singapore)
One company secretary
Paid up capital of the least SGD $1
A business address in Singapore
What are the steps to register a private limited company in Singapore?
Step 1: Reserve your company name
You will need to reserve a name with ACRA. Choose a name that will help to build a great and memorable brand with your clients. The reservation of a name with ACRA will cost you SGD $15.
ACRA will take some time to review your chosen name. If it clears their compliance department, your name will be reserved for you for the next 120 days.
Here are some helpful tips to ensure your chosen name gets approved quickly, and on the first try:
Do not include vulgarities, innuendo, or rude words
Do not use restricted words like “Temasek”
Do not use a name that is the same or very similar to existing company names, or names that are already reserved
If you use special words like “bank” or “school”, your name approval process will take longer. This is because ACRA will refer your chosen company name to the relevant government ministries for further approval.
You must complete the incorporation of your private limited company (i.e. reach step 10 of this guide) within this 120 day timeframe. If you don’t incorporate your company by this deadline, your reserved name will be released to the public. You’ll then have to go through the whole name reservation process again, and pay the $15 name reservation fee once more.
Step 2: Confirm your business activity
You will need to select a business activity code from the Singapore Standard Industrial Classification Code (SSIC). The SSIC is a list of over 500+ different codes representing all kinds of business activities in Singapore, ranging from F&B to engineering to manufacturing to consulting services. For instance, the SSIC code 56112 is the code for the operation of cafes.
You may supplement your chosen SSIC code with a brief write-up of your specific business activities.
Step 3: Issue company shares
When you start a private limited company, you must issue one or more subscriber shares to your initial company shareholders. You can increase the number of shares later on, but at the point of starting the company, you must issue at least one share. You can start a private limited company in Singapore with a minimum paid-up capital of just SGD $1 (equivalent to about $0.33 USD).
You can choose to issue varying types of shares, such as Ordinary Voting Shares, Preference Shares, Super-Voting Shares, Non-Voting Shares, etc.
Step 4: Confirm the shareholders agreement
It is critical to have a well-drafted shareholders agreement to avoid disputes between company shareholders. A shareholder agreement sets out the relationship between shareholders, dispute resolution mechanisms that shareholders have access to, and the duties and rights of all shareholders, amongst other things. It is advisable to engage a lawyer to draft a shareholder agreement before the company’s members each sign it.
Step 5: Confirm details of shareholders
Private limited companies in Singapore must have at at least one shareholder.
A shareholder can be either a:
Private individual (e.g. yourself)
Company (e.g. another Private Limited that you operate)
You will need to collect the following information from each shareholder:
Full name
Identification number (e.g. NRIC, passport no., etc.)
Phone number
Email address
Residential address
The above information will need to be submitted when you incorporate your private limited company.
Are foreign shareholders allowed in Singapore?
Yes. Singapore allows 100% foreign ownership of companies. This makes it easy for foreigners to set up companies and invest in the country.
There are no special processes or permits required to have 100% foreign ownership (or in fact any level of foreign ownership) of a private limited company.
Step 6: Appoint company director(s)
Your private limited company must have at least one company director who is ordinarily resident in Singapore. Other directors can be based outside of Singapore. However, at least one director must live in the country.
An ordinarily resident person can be a:
Singapore citizen living in Singapore
Singapore permanent resident living in Singapore
A foreigner who holds an Employment Pass or EntrePass or Dependents Pass, living in Singapore
Note that Employment Pass holders must first get consent from the Ministry of Manpower before they can become directors of a company here.
Some additional criteria for being a company director are:
At least 18 years old
Not be disqualified from being a company director (e.g. not be an undischarged bankrupt, no criminal record of fraud/dishonesty, etc.)
Can a shareholder be the sole director of the company?
Yes, that’s perfectly fine. You just need to have at least one director in private limited companies. If you only have one shareholder, that shareholder can also be the sole director of the company.
Step 7: Confirm the registered business address
You must have a registered business address when incorporating a private limited company. This address must be an actual physical address. It cannot be a P.O. Box.
You don’t need to go out to rent an office just to get a business address. There are plenty of virtual offices in Singapore that will provide you with business addresses that you can use for starting and running your company. Check out our article on the 5 cheapest virtual offices in Singapore for more information.
You are allowed to use your own residential address as your business address under the following schemes:
HDB Home Office Scheme: Apply for permission from HDB if you live in a flat, and you wish to use your flat as your registered business address.
URA Home Office Scheme: Apply for permission from URA if you live in a private property, and you wish to use your private property as your registered business address.
Using your house address as your business address may be convenient, but do remember that your business address is public information. Anyone can simply look up your business profile on ACRA’s website and they will know where you live. Consider using a virtual office if privacy is important to you, or if you plan on borrowing heavily from loan sharks.
Stop 8: Confirm your Company Constitution
Your Company’s Constitution is a document that lays out how your company will be operated, the various rules that regulate your company, and the rights and responsibilities of each shareholder. It is similar to a corporate version of a country’s constitution. You must have a Company Constitution when you submit your application for incorporation.
Before 2014, it used to be that you would have to submit 2 documents, called the Memorandum of and Articles of Association. After 2014, ACRA streamlined these two documents into one document, which we now know as the Company Constitution.
In Singapore, it is most common to use the Model Constitution. The Model Constitution makes it easy for first-time entrepreneurs to quickly have this requirement fulfilled without putting too much thought into the Company Constitution. You can download the Model Constitution here.
Step 9: Confirm your financial year-end (FYE)
You must decide on a date on which your financial year will end. Your FYE is when your corporate filings are due to the relevant authorities. Commonly chosen FYE dates include the last day of March, the last day of June, the last day of September, or the last day of December.
You must also confirm whether your accounting period will be over 12 months or 52 weeks. A 12-month accounting period is more popular.
Step 10: Submit your application via BizFile+
Go to BizFile+ to submit all the information from steps 1 to steps 11. You must have the transaction number of your approved company name in order to file a successful application.
Emails will be sent to the appointed company offices all of the company’s directors shareholders and your company secretary must provide their consent online via the link contained in the email this will redirect them to bits while plus they must provide their consent within 60 days of receiving the email.
The BizFile+ application will cost you SGD $300 (approx. USD $100). Accepted payment modes include: debit/credit card (Mastercard, Visa, Amex), PayPal, Google Pay, and Apple Pay.
Once you’ve completed Step 10, it’s time to pop open a nice bottle of champagne. You’ve just incorporated your private limited in Singapore! Congratulations!
Step 11: Open a company bank account
Once you’ve incorporated your company, you should open a corporate bank account in Singapore so that you can start sending and receiving payments.
Have at least one company director be physically present in the bank in order to sign the required paperwork. If you are unable to be present in Singapore, some banks may accept signed documents at the bank branch in your country, or document verified by a notary public.
What should I take note of after I’ve incorporated my company?
Hold an AGM every year
All private limited companies in Singapore must hold an AGM every calendar year.
File annual returns
All companies must file their annual returns with ACRA within one month of their FYE.
File corporate taxes
All companies must file their corporate income tax returns with IRAS by 30th November every year.
Appoint your company secretary
All private limited companies must appoint a company secretary within 6 months of their incorporation. In Singapore, it is very common to use corporate secretarial companies instead of hiring an individual person to serve as a company secretary. Many incorporation companies will offer corporate secretarial services at relatively affordable rates (e.g. between SGD $300 to $600/year). The corporate secretary is responsible for managing the company’s corporate filings, ensuring that the company complies with relevant regulations, and other general compliance requirements.
Appoint a company auditor, unless exempted
The audit exemption criteria in Singapore is crafted to ensure that most companies do not have to appoint an auditor. Only medium-sized enterprises and larger will need to appoint auditors to certify their accounts.
The audit exemption requirements are:
Total number of employees under 50
Annual revenue under SGD $10 million
Total assets under SGD $10 million
If you meet all 3 of the above criteria, then you do not need to appoint a company auditor. As you can see, the criteria are all quite generous. If, however, you have the good fortune of exceeding these criteria (e.g. you have annual sales of SGD $15 million) then you would have to appoint a company auditor.
Obtain licenses and permits if necessary
Some businesses in Singapore are required to apply for specific licenses and permits. For example, if you wish to run a massage parlour, you’ll have to apply for a Massage Parlour license from the Singapore Police Force. If you wish to run a restaurant, you must obtain a Food License from the Singapore Food Authority.
Make sure you familiarise yourself with the various permits required for your type of business.
Maintain a minimum number of registered office hours
Your office at your registered business address must be open to the public for a minimum of three hours a day, during normal working days. If you use a corporate secretary with a virtual office, they will be able to fulfill this requirement for you.
Display your UEN correctly
Your UEN must be displayed clearly on all your letterheads, invoices, and other official company documents/communications.
Customs registration:
If your business is involved in the import and export of goods, then you will need to register your company with the Singapore Customs. The Singapore Customs will issue you a Customer Registration Number for use during your import/export activities.
Goods and services tax (GST) registration
If your annual turnover is more than SGD $1 million, then you must register for the Goods and Services Tax (GST). GST is currently 7%, and is set to increase to 9% by 2023. GST is charged on the services and products that you provide to your customers.
You can choose to voluntarily register for GST. Being a GST-registered business does have some advantages. The key benefit is that you can claim back the GST which you pay on your company’s expenses.
For instance, if you are a GST-registered business and you purchase a commercial warehouse oh, and the purchase price included 7% GST you can actually claim back the 7% of the purchase price.
Register for Central Provident fund (CPF) contributions
CPF is a national savings fund. Employers are required to contribute between 7.5% to 17% of the employee’s monthly salary into the CPF accounts. CPF is mandatory for all employees in Singapore who are Singapore Citizens or Permanent Residents, as long as they earn over $50 a month.
CPF contributions are not required for foreign employees.
Apply for government grants for newly incorporated companies
The Singapore government is highly vested in promoting entrepreneurship. If you are a newly incorporated business, one popular grant that you can apply for is the Startup SG Founder scheme. The Startup SG Founder scheme allows business owners to receive matching investments of up to $30,000 from SPRING Singapore. SRING Singapore will match $3 for every $1 raised by the founder, as long as the investment is raised from an Accredited Mentor Partner (AMP). There are currently 48 AMPs approved by SPRING Singapore.
Qualifying criteria for Startup SG Founder scheme:
Singapore-registered company
Company must not have been incorporated for more than 6 months
Applicant must be a key decision-maker in company
Applicant must be Singapore citizen or permanent resident
Applicant must hold at least 30% of shares in company
At least 51% shareholding owned by locals (Singapore citizens or permanent residents)
Remember to protect your new private limited business:
It is vital that you protect your company from the myriad of business risks that exist. A business lawsuit could cost you hundreds of thousands to millions of dollars. A fire at your business premises could wipe out hundreds of thousands of dollars in investment. A slip and fall by a customer while in your business premises could result in expensive personal injury claims.
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!
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