Want to Open a Shop in Singapore? Must-Know Requirements and Process

Want to Open a Store in Singapore? Here's What You Need to Know About the Requirements and Process

In recent years, as the global business environment continues to evolve, more and more entrepreneurs have turned their attention to the Asian market. As one of the most competitive economies in Southeast Asia, Singapore has become a top destination for international companies to set up branches or open stores, thanks to its stable environment, efficient services, and strategic location. Particularly in the context of global economic recovery post-pandemic, Singapore’s commercial vitality continues to grow, attracting a large number of investors from China and other countries.

If you're considering opening a store in Singapore-whether in food services, retail, or any service industry-here are the key conditions and procedures you need to understand.

1. Market Research and Business Feasibility Analysis

Before officially registering your business, the first step is to conduct thorough market research and a feasibility analysis. Although Singapore’s market size is relatively small-with a population of about 5.7 million-it is highly developed, with strong purchasing power and high internationalization. Consumers expect high-quality products and services.

Before deciding on your business venture, clearly define your target customer base and assess the level of local market competition. A recent report released by Enterprise Singapore shows that small-scale retail and food service businesses are steadily growing in 2025, particularly in the areas of health foods, light meals, and bubble tea, which are popular among younger consumers. Additionally, Singapore is promoting a green economy and encouraging environmentally friendly business models, creating new opportunities for entrepreneurs in related industries.

2. Choosing the Right Business Structure

When setting up a physical store in Singapore, the first decision you need to make is the legal structure of your business. Common options include

Sole Proprietorship Suitable for individual entrepreneurs, simple to register, but the owner is personally liable for all business obligations.

Partnership Suitable for two or more people investing and managing the business together.

Private Limited Company Pte Ltd The most common and recommended structure, offering limited liability protection, separate legal entity status, and better prospects for long-term growth and fundraising.

Most foreign investors choose to register a Private Limited Company because it facilitates investment attraction, Employment Pass applications, brand building, and tax planning.

3. Company Registration and Business Licensing

1. Company Registration

To register a company in Singapore, you must submit an application through the Accounting and Corporate Regulatory Authority ACRA. The process is efficient and typically takes 1 to 3 working days. Required documents include the company name, director and shareholder details, registered address, and company constitution.

2. Industry-Specific Licensing

Different types of stores require different business licenses

Food businesses must apply for a food license from the Singapore Food Agency SFA.

Retail shops may need permission from the Housing Development Board HDB or Urban Redevelopment Authority URA to use commercial space.

Import-related businesses must register with relevant customs authorities.

It's worth noting that starting in 2025, Singapore has further streamlined the approval process for certain industries, especially for startups and SMEs, introducing several supportive policies and lowering entry barriers.

4. Location Selection and Leasing

Location is one of the key factors determining the success of your store. Due to Singapore’s limited land area and high demand, commercial rents are generally high. Popular areas such as Orchard Road, Marina Bay, and Chinatown command premium prices and are better suited for luxury brands or chain stores. Emerging areas like Clementi and Jurong offer more cost-effective alternatives.

When leasing, it’s advisable to use professional real estate agents or platforms to find suitable premises. Before signing a lease agreement, carefully review the terms, especially those related to renovation periods, renewal conditions, and deposit refund policies.

5. Hiring Employees and Visa Issues

If you plan to manage the business personally, you can apply for an Employment Pass EP. This pass is available to professionals earning at least SGD 5,000 per month, with a certain level of educational background or management experience.

For businesses wishing to hire foreign workers, the S Pass or Work Permit system can be used to recruit foreign labor. In 2025, the Ministry of Manpower MOM adjusted the work pass quotas for certain industries, especially in food services and retail, where reliance on foreign labor has been somewhat restricted. Therefore, it’s important to plan your human resource strategy in advance.

6. Taxation and Financial Management

Singapore’s tax system is simple and transparent, with a corporate income tax rate of 17%, significantly lower than many developed countries. Startups also benefit from tax incentives, such as full exemption on the first SGD 100,000 of taxable income and 50% exemption on the next SGD 100,000 for the first three years.

To ensure compliance, it’s recommended to hire a professional accountant to assist with tax filing and financial reporting. All businesses must maintain complete financial records for auditing and regulatory review.

7. Marketing and Localization Strategy

Once your business is set up, how to gain acceptance from local consumers is crucial. Singapore is a multicultural society where Mandarin, English, Malay, and Tamil coexist. Therefore, your brand name, advertising copy, and customer service should reflect multilingual and multicultural sensitivity.

Leveraging social media and local lifestyle platforms such as Grab, Foodpanda, and Lazada for promotion is also essential. According to 2025 data, over 80% of Singaporean consumers discover and purchase local services online, highlighting the growing importance of digital marketing.

Conclusion

Despite its small size, Singapore offers a highly open, well-regulated, and efficient business environment. For entrepreneurs aiming to expand overseas, it serves not only as an ideal testing ground but also as a gateway to the broader Southeast Asian market.

With thorough preparation, a clear understanding of policies and procedures, and flexible adaptation to local market demands, you can indeed cultivate a successful business in this garden city.