Opening a Retail Store in Singapore? Read This First!

Starting a retail business in Singapore is an exciting venture, but one that requires careful planning. Choosing the right location, obtaining necessary licences and permits, and securing proper insurance coverage are critical for compliance and long-term success.

Singapore offers high transparency, streamlined digital applications via the GoBusiness Licensing Portal, and industry-specific regulations, especially around retail usage in HDB units or shopping malls. This guide explains step-by-step how to plan, apply, and open your retail storefront with confidence.

1. Choosing Your Ideal Location: HDB Shop, Home-Based, or Shopping Mall

HDB Commercial Units (Heartland Shophouses)

HDB commercial units provide heartland visibility, affordable rentals, and steady local traffic, ideal for convenience stores, salons, and household goods outlets. However, they come with space constraints and stricter regulatory limits. Retail signage, permitted trades, and layout must comply with HDB standards.

Home-Based Small Business (HDB Flats)

A rising trend in Singapore is starting small-scale retail or service businesses right from your HDB flat. Under the Home-Based Small Business Scheme, you can legally run:

• Takeaway cafés (pre-order basis)
• Home barbershops or hair salons
• Nail salons or makeup studios

These businesses are allowed without applying for a permit, as long as they:

• Have no visible signage or street-facing advertising
• Do not employ non-residents
• Do not cause excessive foot traffic, noise, or disruption to neighbours
• Comply with SFA guidelines for food safety if preparing consumables

Real examples include residents running halal coffee takeaway services from their window, or stylists transforming a spare room into a mini salon. However, if the business grows beyond this small scale—e.g. hiring staff or installing signage—it must move into commercial premises.

Shopping Mall Retail Units

Malls offer high footfall, brand visibility, and a polished retail environment. Rents and occupancy costs are higher. Fit-out guidelines, signage approvals, promotional materials, and vendor mix must align with the mall’s leasing guidelines.

Which Location Fits Your Business?

2. Legal Structure & Company Registration

• Decide on your legal form: sole proprietorship, partnership, or private limited (Pte Ltd). Most retail stores opt for Pte Ltd for liability protection and credibility.
  
  
• Register with ACRA via BizFile+. Process typically takes 1–3 working days with all documents prepared.
  
  
• Requirements include a local residential address (PO box not allowed), at least one resident director, a company secretary within 6 months, and a registered business address (which may be under Home Office Scheme if eligible).

3. Premises Approvals & Renovation Requirements

Change of Use / Premises Approval

• If your chosen space is not designated for retail usage (e.g. industrial/commercial building, previous residential), you must apply for Change of Use approval via the URA.
  
  
• For HDB units, you must confirm permitted trades and seek HDB administration approval for commercial usage.
  
  

Fire Safety Certificate (SCDF)

• Critical for all retail outlets: you must apply to the Singapore Civil Defence Force (SCDF) for a Fire Safety Certificate.
  
  

Building Works & Fit-Out Permits

• Significant renovations or structural changes require approval from:
  
  
  • URA and/or HDB
    
    
  • Building and Construction Authority (BCA) for renovation permits
    
    
  • Temporary Occupation Permit (TOP) and Certificate of Statutory Completion before you open premises.
    
    

Signage Licence

• Any exterior signage requires a license (through BCA/URA), especially in malls or publicly visible storefronts.

4. Essential Licences & Permits via GoBusiness (OBLS)

Singapore uses the Online Business Licensing Service (OBLS), accessible via GoBusiness, to apply for multiple licences at once, saving weeks of admin time.

Common Licences for Retail

• General Retail Trade Licence (LFMC): required for stores selling regulated items like tobacco, pharmaceuticals, pet products, cosmetics, applied via GoBusiness (check relevant agency: SFA, HSA, NParks).
  
  
• Food Shop Licence: S$195/year, must submit layout plan, pass pre-inspection from SFA, pay via GIRO/AXS., valid for 1 year.
  
  
• Supermarket Licence: required if you operate >200 sqm premise; S$250 (≤200 sqm), S$500 (>200 sqm) per year.
  
  
• Import/Export Permits if you carry imported goods, managed via TradeNet under Singapore Customs.
  
  

Required Documents

• UEN (Unique Entity Number from ACRA)
  
  
• Approved layout plan (drains, sinks, benches marked with scale)
  
  
• Lease agreement + stamp duty certificate
  
  
• For food licences: layout plans, food handler certificates, cleaning protocols

5. Insurance Coverage: Mitigating Risk in Retail

Proper insurance is essential to protect against liability, business interruption, theft, and employee injury.

1. Public Liability Insurance

• Covers guest injuries or property damage on premises.
  
  

2. Fire & Property Insurance

• Protects inventory, rental premises fixtures, equipment against fire, theft, vandalism, or disasters.
  
  

3. Business Interruption (Consequential Loss) Insurance

• Reimburses lost income due to unexpected disruptions (e.g. fire, structural damage, supplier issues), especially vital for resilience planning.
  
  

4. WICA (Work Injury Compensation Insurance)

• Mandatory when employing staff, covers medical expenses and compensation due to workplace injury.
  
  

5. Product Liability Insurance

• Crucial if you sell regulated products (e.g. cosmetics, electronics, children’s toys, supplements). Protects against claims if your product causes harm.
  
  

6. Cyber Insurance / Data Breach

• For retail stores using digital systems (POS, e-commerce, customer data), this insurance covers cost of investigation, recovery, and liability in case of cyber-attacks or data leaks 

6. Setting Up Operations & Compliance

Point-of-Sale (POS) & Accounting

• Choose POS systems that integrate with accounting software like Xero, QuickBooks, and provide inventory tracking, receipt issuing, and GST reporting. JWC can advise on setup and integration.
  
  

Payroll, Hiring & CPF Compliance

• If employing Singaporeans or PRs, CPF contributions are mandatory. Set up payroll with statutory compliance, CPF deducting, itemized payslips.
  
  
• For foreign hires, ensure valid work passes via MOM and observe Employment Act norms, e.g., contract terms, working hour limits, leave entitlements

JWC do provides the services for payroll, work passes application and hiring for manpower. Speak to us.

Trademark & Intellectual Property

• Optional but strongly advisable, register your business name and logo with IPOS to secure ownership. Fees start from SGD 280 per trademark class and may take up to 12 months to register.

7. Timeline to Launch: Sample Roadmap (3–4 Months)

✅ Why Choose JWC Accounts & HR?

At JWC Accounts & HR, we help clients:

• Register and set up business entities (ACRA/BizFile)
• Navigate retail licence applications via GoBusiness/OBLS
• Arrange SCDF, URA, HDB approvals
• Choose insurance and risk-management packages
• Implement integrated POS, accounting, payroll, and HR systems

👉 Contact us at jwc.com.sg to start your retail setup journey smoothly.