Business License Singapore | A Complete Guide to Licenses and Permits

Business establishments in Singapore receive recognition for their quick and effective execution. The process of business licensing presents difficulties to inexperienced and international entrepreneurs who need to understand its requirements. A business license in Singapore authorizes specific regulated business operations after a government body grants permission to the organization. 

The company registration process establishes a legal business entity through ACRA, yet it does not grant permission for all operational activities. Legal permission to operate a business requires company registration with ACRA, yet not all activities become authorized at that point.

Some businesses become operational from their incorporation date, while others need to secure multiple licenses before they can start operations. The activity requires the determination of its regulated status to decide which license to obtain. The early understanding of this distinction helps organizations prevent expensive operational interruptions and the associated fines and shutdown orders.

What Is a Business License in Singapore?

A business license in Singapore is an approval that government authorities grant to permit a business to perform specific legal business operations.  

Company Incorporation vs Business License

• Company incorporation (ACRA):
• Company incorporation (ACRA) establishes your business as a legal entity that ACRA registers in Singapore.  
• Business licenses and permits:
• Business licenses and permits permit businesses to perform particular activities that require governmental permission.

Activity-Based, Not Company-Based

Licenses in Singapore are activity-based, not company-based. This means:

• One company may need multiple licenses if it conducts multiple regulated activities. A change in business activity may require a new or additional license.  
• A change in business activity may require a new or additional license.

Do All Businesses Need a Business License in Singapore?

Businesses That Do Not Require Licenses

Various non-regulated businesses operate successfully without needing extra licenses, including General consultancy, Software development, Digital marketing, and E-commerce of non-regulated products, and Trading of non-controlled goods.

Businesses That Must Obtain Licenses

The regulated sectors require licenses, which include Food and beverage, financial services, education and training, construction, healthcare, and telecommunications.

How to Identify If Your Activity Is Regulated

The best way is to:

• Identify your SSIC code.
• Check whether that activity is regulated by a government authority.

Common Misunderstanding Among Foreign Founders

Many foreign founders believe that completing the incorporation process gives them full rights to conduct business, which is actually a false assumption. Licensing requirements apply equally to local and foreign-owned companies.

Difference Between Business License, Permit, and Registration

Business License

A long-term approval allows continuous business operations, which includes the Food Shop License.

Business Permit

The authority approves specific operations through this document, which includes import permits for controlled products.

Business Registration

The ACRA process establishes a legally recognized business entity for official company formation.

Government Authorities That Issue Business Licenses in Singapore

• The Accounting and Corporate Regulatory Authority (ACRA) handles company registration for businesses. 
• The Ministry of Manpower (MOM) establishes regulations that govern employment agencies and manpower services. 
• The Singapore Food Agency (SFA) supervises all food and drink operations throughout the country. 
• The Monetary Authority of Singapore (MAS) controls all financial activities and payment systems in the country. 
• The Building and Construction Authority (BCA) oversees all construction and engineering projects. 
• The Infocomm Media Development Authority (IMDA) regulates telecommunications services, broadcasting networks, and media distribution channels.

Common Types of Business Licenses in Singapore

Food and Beverage (F&B) Licenses

The licenses cover all food service establishments, which consist of restaurants, cafés, bakeries, and cloud kitchens.

Financial and Professional Services Licenses

• Financial advisory licenses
• Payment Services Act licenses
• Fund management licenses are regulated by MAS.

Trading, Import, and Export Licenses

• Singapore Customs registration
• Permits for controlled goods (e.g., alcohol, chemicals)

Construction and Engineering Licenses

• BCA contractor registration
• Industry-specific safety and technical approvals

Education and Training Licenses

• Registration for private education institutions
• Compliance with curriculum, staffing, and facilities standards

Step-by-Step Process to Apply for a Business License in Singapore

Step 1: Register Your Company with ACRA

Licensing can only occur after incorporation, as licenses are issued to legal entities.

Step 2: Identify Your Business Activity

• Select appropriate SSIC codes.
• Match the activity to the relevant licensing authority.

Step 3: Prepare Required Documents

Typically includes:

• Company Biz Profile
• Director and shareholder details
• Registered business address
• Industry-specific documents

Step 4: Submit the Business License Application

Most applications need to be submitted through online government portals.

Step 5: Inspections and Additional Approvals

Some businesses require:

• Site inspections
• Compliance checks
• Technical assessments

Step 6: License Approval and Issuance

• Approval timelines vary
• Licenses have defined validity periods.

Documents Required for a Business License in Singapore

• Company incorporation documents
• Identification of directors and key personnel
• Lease agreement or address proof
• Professional qualifications (if required)
• Additional approvals, depending on the industry

Cost of Obtaining a Business License in Singapore

Costs vary significantly based on industry:

• Government licensing fees
• Inspection and compliance costs
• Professional or consultant fees
• Renewal and ongoing compliance expenses

Highly regulated industries generally incur higher costs.

Business License Validity, Renewal, and Ongoing Compliance

• Most licenses remain active for one year.
• Renewal needs to happen before the expiration date.
• The organization faces penalties when it fails to complete renewal or submits it after the deadline.
• Some licenses must be displayed at business premises.

Can Foreign-Owned Companies Apply for Business Licenses in Singapore?

Yes, foreign-owned companies are eligible.

Considerations include:

• Requirement for at least one local director
• Employment pass approvals
• Industry-specific ownership or residency restrictions

How Long Does It Take to Get a Business License in Singapore?

• Simple licenses: a few days to 2 weeks
• Regulated industries: several weeks to months

Delays are often caused by incomplete documents, inspections, or incorrect activity classification.

Common Mistakes When Applying for a Business License in Singapore

• Companies need to submit applications before they establish their legal existence.
• Businesses need to select the right SSIC codes for their operations.
• Organizations need to submit all necessary documents for their application process.
• Businesses must fulfill inspection requirements, which they should not skip.
• Organizations need to recognize how long the approval process will take.

How Arnifi Helps with Business Licensing in Singapore

Founders who lack regulatory knowledge will find it difficult to navigate Singapore’s licensing system. The complete process is simplified by Arnifi, which offers support to discover license requirements and handle all application work and compliance tasks. Businesses depend on Arnifi to identify the activities that they need to report to licensing authorities while submitting complete applications, managing inspections and regulatory requirements, and completing license renewals to prevent penalties. Founders can build their business with confidence because Arnifi manages licensing and compliance needs in an efficient and accurate manner.

Conclusion

People need to understand the Singapore business license requirements to operate their business activities legally and confidently. The process of incorporating a business requires multiple specific licenses, which must be obtained before any business activities can start.

People can process their initial application process, creating better results because they need to submit their application only once. Businesses achieve their licensing needs through proper guidance and preparation, which helps them establish operational and business development needs to predict their future growth.