Starting a home business in Singapore requires as much planning, documentation, and setting up as any business, but it can be a lucrative venture for any aspiring entrepreneur. Not to mention, starting a Singapore home business can be a way to achieve financial independence, and start a small enterprise right from the comfort of home.
In this article, we’ll take you through the step-by-step process of starting a small business at home in Singapore.
What is a Home Based Business in Singapore
A home-based business in Singapore is a small-scale enterprise that can be managed from the comfort of one's home, removing the need for a separate office space. It’s typically run by a single individual, and they will handle all aspects of the business independently. Nowadays, more people have chosen to operate small businesses from home because it’s a cost-effective and convenient option.
There are lots of benefits to starting a home-based business. You will not only be able to earn additional income, but this side venture could potentially evolve into a full-time occupation. Additionally, operating a home-based business lets you test your business ideas with minimal financial risk, making it a practical way to begin one's entrepreneurial journey.
Common Types of Home Based Business in Singapore
There’s a broad spectrum of small businesses you can operate from home. Many businesses don’t require a physical storefront, making them suitable for operation from your HDB flat. Some common business from home Singapore types include:
- Freelance Professions: Opportunities in freelance work, such as art, journalism, photography, and writing, allow individuals to express their creativity.
- Consultancy: Home-based consultancy services can cover a wide range of fields, including business, engineering, IT, management, and education.
- Private Tuition: Offering private tuition to a small number of students, typically up to three at a time, is a viable home-based business.
- Technology-Based Businesses: With the rise of technology, businesses like software development or online consulting can be efficiently operated from home.
- Small-Scale Baking Businesses: This type of business is particularly popular because it enables individuals to monetize their culinary talents from home.
Government Requirements for Home Singapore Home Business
Establishing a home-based business in Singapore requires adherence to specific government regulations to ensure legal compliance. Thus it is important to follow through every step of the way which was required by the Singaporean government to ensure compliance.
Business Registration
The first thing you should do is to register your business with ACRA. During this step, you should provide the necessary information that ACRA requires you to fill-in.
Zoning and Home Office Approval
Ensure your residential area permits home-based businesses. Additionally, depending on your business type, you may also need to obtain approval from HDB or URA if you’re planning to open a home-based business.
Tax Registration
Register for applicable taxes, including GST, depending on your business's turnover.
Permits and Licences
Next, it is important to obtain any required permits or licences based on the nature of your business.
Employment Regulations
If you plan to hire staff, make sure to comply with employment regulations and labor laws.
Intellectual Property Protection
Though your business is still small-scale, it is important to start early to safeguard your unique products or services through trademarks or patents.
Industry-Specific Compliance
Last but not least, you should also be aware of and follow any industry-specific regulations relevant to your business.
Do keep in mind that complying with these requirements is important if you want to ensure your business operates legally and is well-positioned for success in Singapore.
How to Start a Home Business in Singapore
Starting a home business can seem daunting, but breaking it down into clear steps can help to make it easier!
Step 1: Determine Your Industry
Decide on the right industry for your business. Knowing what industry you want to pursue will help you identify the target market and understand the permits and registration requirements.
Step 2: Do Market Research
The next step is to do market research. Thorough market research ensures your product meets customer demand. Additionally, market research will also enable you to find ways to promote your business later on.
Step 3: Plan Your Business
Once you have figured out your business idea and target audience, you can fully plan your Singapore home business. Plan out your business operations, costs, and manpower needs. Since it’s a home business, it is also better if you can set aside a dedicated workspace to make you more focused when working. Having a home office can also help you to better maintain a work-life balance.
Step 4: Register Your Business
All businesses in Singapore, regardless of size, must register with ACRA. Most home businesses usually register as sole proprietorships due to fewer requirements, but partnerships and LLCs are also great options. You should choose the best structure for your goal, depending on your plans.
Step 5: Get the Necessary Permits
Ensure you apply for any licences or permits required for your business. For example, food businesses need approval from the National Environment Agency, and certain professions may require specific licences.
Step 6: Promote Your Business
Once you have your business set up, it’s time to do some promotions! Promotions and marketing are key to raising awareness for your home business and will bring customers to your business. Do keep in mind that you have to ensure everything is ready before promoting your business, as first impressions do matter. You have to prepare well to impress all the new customers!
Hassle-free Business Registration
Register without the inconvenience and confusion through WealthBridge! Our corporate services team will ensure your business is up and running by the time you decide to launch, so let us handle the paperwork, and focus on bringing in customers to your home business.