How to register a home business in Singapore (it's easy)

Sole-proprietorship: a business owned by one person

Partnership: a business with two to 20 partners

Company: a business with at least one director and shareholder

To avoid rejection or delays, don’t choose an offensive name or one that’s similar to other businesses. You can check existing business names by using the directory search on the ACRA website.

However, if your type of business requires approval from other government agencies (for example, you’ll need approval from the Ministry of Education if want to run a tuition centre), it may take between 14 days and two months to get your application processed.

If you get lost, an e-guide is available at the website to guide you.

Once your registration application is successful, you’ll receive your Unique Entity Number (UEN). This identification number is generated for all businesses and should be mentioned in all communication with government agencies, including HDB. For more information, visit the ACRA website.

1. The Home-Based Small Scale Business Scheme is for those who want to carry out a small scale business to supplement their income, such as baking, beauty services, sewing services, and private tuition.

The good news? You won’t have to apply for a license if your business falls under this scheme. The not-so-good news? You won’t be allowed to hire any assistants.

While you won’t need a license for a Home-Based Small Scale Business, there are guidelines to follow. Your business should not adversely affect your neighbours’ living environment, involve the use of heavy equipment that is not intended for domestic use, nor require storage or the movement of goods.

Also, no physical or paid advertising for the business is allowed (nope, not even an online advertisement). For more information, visit the HDB website.

2. The Home Office Scheme is for those who want to use their home to operate an approved business or run the administrative functions of their business. This includes design and advertising services, and insurance and financial planning services.

If your business falls under this scheme, you’ll need to apply for a license. Here’s how:

You should be at least 18 years old and living in the flat you’ll be working from. While there is no limit to the number of employees you can have, you can only hire two non-residents to work in the flat.

Also, you aren’t allowed to buy or sell any goods in your home or display any advertisements or posters in your neighbourhood.

GoBusiness (formerly known as LicenseOne) is a one-stop business licensing portal. You’ll need your SingPass ID and a credit card (a non-refundable admin fee of $20 is required) to make an application. The license will be valid for 5 years and is renewable.

When you have a home office, your papers, files and office equipment can pose a slightly higher fire risk as compared to an ordinary home. Therefore, it is mandatory to have a fire extinguisher and smoke detector.

According to the fire safety requirements set by the Fire Safety and Shelter Department (FSSD), you must install a 2kg ABC Dry Chemical Powder fire extinguisher shops and a single-station battery-operated smoke detector in the office area.

Both items are available at DIY shops. You can email  SCDF qp consultant@scdf.gov.sg for enquiries about the fire safety requirements.

All income earned or received in Singapore from trade, business, profession and/or vocation is subject to income tax in Singapore so do make sure that you keep proper records and your accounts are in order. You can go to the Inland Revenue Authority of Singapore (IRAS) website for more information.

If you and a family member both want to apply for a home office at the same flat, you can as long as both of you are the owners or listed occupiers of the flat. Just remember to submit separate applications for the individual businesses.

And you’re good to go. Good luck!