How to Register a Home-Based Business in Singapore

You have been taking orders for a few months. Friends, then friends of friends, then people you have never met. At some point, the question arrives on its own: does this need to be registered?

If you are carrying out an activity for profit on a regular basis, the answer is generally yes unless an exemption applies. The process is relatively straightforward. Here is what you need to know, in order.

First, Check If You Need to Register At All

There is one important exemption to check before you pay anything.

If you operate your business using only your full name as it appears on your NRIC, you generally do not need to register the business with ACRA. For example, an individual carrying on business solely under the full name Tan Mei Ling does not need to register just because the activity is carried out for profit.

The moment you use a business name that contains anything beyond your full NRIC name, registration is required. Mei Ling's Bakes would need to be registered. So would Tan Mei Ling Bakery, because the additional words make it a business name rather than the person's full name.

The same applies to online businesses. Selling through Instagram, a website or another online platform does not by itself exempt you from the business registration rules.

What Registering Gets You

It is worth knowing what business registration actually does.

Registering a sole proprietorship gives the business a Unique Entity Number (UEN) and puts the business on ACRA's register. It can also make it easier to open a business bank account and deal with suppliers, customers and government agencies.

But registration is not a general business licence. It does not automatically permit you to carry out every type of business activity, and separate licences or approvals may still apply depending on what you do. ACRA recommends checking the relevant licences through GoBusiness.

Registration also does not give you exclusive intellectual-property rights to the business name. If protecting the name itself matters, trademark registration is a separate process handled by the Intellectual Property Office of Singapore (IPOS).

Running a business from home is another separate question. Depending on the activity, you may fall under the Home-Based Business Scheme or the Home Office Scheme, each with its own conditions.

What It Costs

The current ACRA fees are straightforward.

• S$15 to apply for a business name
• S$100 to register a new business entity
• S$30 to renew the business registration

That makes the initial ACRA cost S$115, before any other costs that may apply to your particular business, such as licences, permits or professional services.

Get These Three Things Ready First

The registration itself is relatively simple if you have the necessary information ready.

Make sure your Medisave requirements are met

Singapore Citizens and Permanent Residents registering as self-employed business owners need to have their Medisave obligations settled or be on a monthly instalment plan with the CPF Board. This applies when applying for, retaining or renewing a business registration or licence.

If your Medisave contributions are outstanding, check your CPF status and make the necessary payment arrangement before starting the registration.

Prepare a business address

You will need to provide the main address where the business is run. A home address can be used where appropriate. ACRA requires a business address as part of the registration details.

However, registering your home as the business address is separate from getting permission to carry out a particular activity there. Home-based businesses must still comply with the relevant residential-use rules.

Choose your SSIC code

The Singapore Standard Industrial Classification (SSIC) code describes your primary business activity.

You can search for the relevant code during the application process, although it can be useful to check the available options beforehand. Choose the code that most closely reflects what the business actually does. A bakery, online retailer and consultancy, for example, will have different business activities and corresponding codes.

The Registration Steps

Registration takes place through Bizfile, ACRA's online filing platform.

• Log in to Bizfile using SingPass if you are eligible to apply directly.
• Apply for your business name and pay the S$15 application fee.
• Once the name is approved, proceed with the business registration.
• Enter the required business details, including your proposed commencement date, business email, business address, and business activity.
• Pay the S$100 registration fee.
• Once registered, keep your business registration information and UEN somewhere accessible.

Most straightforward name applications are processed quickly, but ACRA says its review can take up to three working days. Applications referred to another authority can take longer.

Names can be rejected or referred for several reasons. A proposed name that is identical to an existing or reserved name will not be accepted, while certain words can trigger referral to another authority. For example, ACRA notes that a proposed name containing school may be referred to the Ministry of Education and take longer to process.

Search ACRA's register before applying. It is a simple step that can save you from submitting a name you cannot use.

Sole Proprietorship or Company?

For a small one-person business, a sole proprietorship is often the simplest structure.

A sole proprietorship is owned by one person and is relatively straightforward to register and manage. The business is not a separate legal entity from its owner, however, so the owner has unlimited liability for the business's debts and obligations.

A private limited company is a separate legal entity. It offers limited liability and a different tax and compliance structure, but it also involves more administration and ongoing filing requirements.

No rule says every successful home business needs to become a company immediately. The appropriate structure depends on factors such as liability, revenue, employees, investment, and plans.

For a small side business starting with weekend orders, a sole proprietorship may be a practical starting point. If the business grows, you can reassess the structure later.

If You Are Selling Food

This is where business registration and food regulation need to be kept separate.

Under Singapore's current rules, certain small-scale home-based food businesses can operate without an SFA food retail licence, provided they meet the requirements of the Home-Based Business Scheme and comply with food-safety rules.

That does not mean there are no restrictions.

Home-based food businesses cannot sell their food to licensed food retailers such as restaurants, cafes, hawker stalls, canteens and similar establishments. They are also prohibited from selling ready-to-eat raw seafood, including sashimi, raw oysters and raw marinated seafood.

The Home-Based Business Scheme also has residential-use conditions. For example, the premises must remain a residence, the business must be operated by the relevant occupants or tenants, and there are restrictions on non-resident employees, heavy equipment, storage and frequent loading or unloading.

After You Are Registered

There are several things to keep track of once your UEN has been issued.

Renew your registration

ACRA charges S$30 to renew a business registration. Keep track of the expiry date so the registration does not lapse. ACRA can cancel a sole proprietorship if it is not renewed.

Declare your business income

A sole proprietor is generally treated as self-employed for tax purposes. Business income is reported as part of your personal income and is subject to individual income tax rates. Do not wait until tax season to reconstruct your sales. Keep records of your revenue and allowable business expenses from the beginning. IRAS requires self-employed persons to maintain proper records and accounts.

Keep business and personal money separate

A separate bank account is not what makes a sole proprietorship legally separate from its owner. However, separating business transactions from personal spending can make bookkeeping much easier.

You can start with a simple spreadsheet if the business is small. The important thing is that you can clearly identify your sales, expenses, and supporting records when you need them.

Getting the Admin Off Your Phone

ACRA registration is only one part of turning a side business into an organised operation.

If your orders currently live across WhatsApp conversations, Instagram DMs and notes on your phone, the next useful step is to bring them into one place.

Belii provides a way to put a shop and menu behind a single link, with orders coming through one place instead of several different channels. You can set one up here and add the link to your social media bio alongside your newly registered business name.

The Short Version

If you carry out business only under your full NRIC name, you generally do not need to register that business with ACRA. If you use a separate business name, registration is required.

For a sole proprietorship, the current ACRA setup fees are S$15 for the business name and S$100 for registration, making the initial ACRA cost S$115.

You also need to meet the relevant Medisave requirements, prepare your business details, and complete the registration through Bizfile.

If you are running the business from home, remember that ACRA registration and permission to conduct the activity from your home are separate matters. Food businesses also need to follow SFA's requirements and the conditions of the Home-Based Business Scheme.

Once the business is registered, the job is not quite finished. Keep proper records, report your business income correctly, renew the registration when required, and make sure the actual activity remains compliant with any other applicable rules.