A Beginner’s Guide to Registering a Home Business in Singapore

The COVID-19 virus has transformed the way businesses are conducted in Singapore. Now, more and more entrepreneurs are opting for home-based businesses. This business model is especially lucrative during the coronavirus pandemic. A home-business is more cost-efficient since entrepreneurs can carry out their business without paying for costly office rental. Moreover, it gives them more flexibility.

Depending on the business’ type and nature, entrepreneurs may need to register with different government bodies, including the ACRA, the HDB, and the national regulator of businesses in Singapore. Separate applications are needed for different entities. This article guides you through the proper process of registering a home business in Singapore.

Home Business Registration Via The Bizfile+ Application Process

The home business registration in Singapore is a simple and straightforward process. In most cases, the process is much faster and requires fewer documents than private business registration in the country. Many steps in the business registration process remain the same. However, home business registration needs certain approval from the Housing Development Board, along with the Accounting and Regulatory Authority.

Before carrying out any business operations, new businesses have to make and register a business profile on ACRA’s Bizfile+. Here are the essential steps for registering a business with ACRA:

• Choosing a company name. The company’s name has to be unique, so business owners might need to check the list of incorporated Singapore companies to make sure their preferred name has not been taken.
• Register on ACRA’S online business registration platform called BizFile+
• Obtain the receipt of UEN or Unique Entity Number, which is an identification number produced by the BizFile+ platform, allowing businesses to commence activities officially.

Home Business Registration Via The Housing And Development Board

Any home-based businesses in the country need to be registered with the HDB. Business owners might have to apply for a license depending on their type of business activities. The following are the most popular schemes the HDB offered to businesses:

• Scheme for home-based small-scale business: Business owners who own a business that supplements their main income can apply for this scheme. Examples of businesses suitable for this scheme are tuition classes, baking classes, sewing, and beauty services. While business owners do not have to get a license to register these businesses, they are not permitted to hire any aids or extra resources. Moreover, they cannot conduct any paid advertising operations related to their businesses.
• Scheme for home-office: Business owners who intend to utilise their homes to carry out administrative and corporate activities, such as sales and marketing, need to obtain a license from the HDB. Otherwise, they may get penalised.

Home Business Registration’s Licensing Requirement

Some types of home-based businesses, particularly those that are eligible for the Home Office Scheme, are required to get a license to operate from the Housing and Development Board. Nevertheless, the license can only be acquired after business registration with ACRA is processed and approved.

Business owners can get the license via one of the government-approved websites, such as LicenseOne, which is the official site for various businesses’ registration in Singapore. This license is valid for five years and is renewable.

Registering a Sole Proprietorship In The Country

Many home-based business owners choose to register their business as a sole proprietorship, where there is only one owner who will be shouldering unlimited liability for all the company’s debts and losses. This type of business structure can only be created by a Singaporean citizen who is above 18-year-old. Foreigners, however, cannot set up this business entity. Instead, they have to register a private limited company.

Moreover, a sole proprietorship is not defined as a separate legal entity from its business owners. Also, it can be sued or be sued under the proprietor’s name.

Getting Help From Singapore Incorporation Services Provider

Professional Singapore incorporation services agencies help streamline the process of company incorporation in Singapore and ensure the company stays compliant with the country’s latest regulations.

You may also want to read about A Beginner’s Guide to Register an Offshore Company in Singapore