Compliance 101: A Guide for New Restaurant Owners in Singapore

Starting a restaurant in Singapore involves navigating an extensive landscape of regulations and compliance requirements. For new restaurant owners, understanding and managing these requirements ensures a smooth start to operations, builds customer trust, and creates a compliant, sustainable business. This guide covers essential permits, health and safety standards, employment laws, and best practices for record-keeping—all critical for restaurant owners ready to establish their presence in Singapore’s vibrant food and beverage industry.

1. Key Licences and Permits for New Restaurant Owners

Obtaining the right permits is essential for setting up a legally compliant restaurant in Singapore. These licences confirm that your business meets the necessary health, safety, and operational standards.

Core Licences and Permits:

• Food Shop Licence
  Required for all food establishments, this permit from the Singapore Food Agency (SFA) certifies that your premises meet health and hygiene regulations.
• Liquor Licence (if serving alcohol)
  For establishments planning to serve alcohol, a liquor licence from the Singapore Police Force is required. The licence type may vary based on operating hours and alcohol offerings.
• Signage Licence
  For any external signs, a signboard licence from the Building and Construction Authority (BCA) is needed to ensure safety and compliance with local guidelines.
• Entertainment Licence
  If your restaurant will feature live music or entertainment, you’ll need a public entertainment licence, typically issued by the Singapore Police Force.

Example: If you’re opening a bistro with food, drinks, and live music, you’ll need a Food Shop Licence, Liquor Licence, and Entertainment Licence.

2. Health and Food Safety Standards

Health and food safety are paramount for any food business. In Singapore, restaurants must meet stringent health standards to ensure customer safety and maintain a positive reputation.

Food Safety Essentials:

• Certified Food Handlers
  Employees handling food must undergo training and certification in food safety to prevent health risks.
• Regular Health Inspections
  The SFA conducts routine inspections to verify compliance with cleanliness and safety standards. Maintaining a clean environment helps prevent foodborne illnesses and potential legal issues.
• Temperature and Storage Compliance
  Accurate temperature control and storage are required to maintain food safety. Daily checks and proper documentation are beneficial for tracking compliance.
• Pest Control
  Regular pest management is mandated by law, ensuring food preparation areas remain clean and free from contamination risks.

Example: For a café offering fresh pastries and beverages, daily temperature logs and routine pest control help sustain food safety standards.

3. Employment and Labour Law Compliance

Hiring and managing staff brings its own set of compliance requirements, including labour laws that ensure fair treatment of employees. Adhering to these standards supports a stable, reputable business environment.

Labour Compliance Essentials:

• Employment Contracts
  Written contracts should define each employee’s role, responsibilities, and terms of employment, reducing misunderstandings and ensuring compliance with labour standards.
• Tracking Working Hours and Overtime
  Singaporean labour law mandates that employees working beyond 44 hours a week be compensated with overtime pay. Keeping accurate records helps to meet these requirements.
• Leave and Public Holiday Entitlements
  Staff should receive public holiday and annual leave entitlements. Maintaining clear leave records is essential for compliance.
• CPF Contributions
  For Singaporean and Permanent Resident employees, employers are required to contribute to the Central Provident Fund (CPF), a critical component of employee welfare in Singapore.

Example: A restaurant that clearly outlines overtime policies and CPF contributions helps foster a fair, compliant workplace for its team members.

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4. Importance of Accurate Record-Keeping for Compliance

Keeping thorough records is essential for meeting legal obligations and sustaining smooth operations. Proper documentation can streamline tax preparation, support audits, and reduce the risk of compliance violations.

Essential Records to Maintain:

• Financial Records
  Detailed documentation of income, expenses, and tax payments is crucial. Restaurants earning over S$1 million annually are required to register for Goods and Services Tax (GST), adding to their financial reporting needs.
• Employee Payroll and Attendance Records
  To remain compliant with labour regulations, maintain precise records of payroll, hours worked, and CPF contributions.
• Food Safety and Inspection Logs
  Food storage temperatures, pest control actions, and inspection outcomes should be documented daily. This demonstrates consistent adherence to safety standards.
• Licences and Permits
  Keep all necessary licences and permits accessible for inspections or audits to demonstrate compliance and avoid disruptions.

Example: Well-organised payroll documents, safety logs, and expense records allow for efficient audits, reducing potential compliance risks.

5. Why Compliance is Essential for New Restaurant Owners

Following regulatory requirements benefits more than just legal standing—it builds trust with customers, supports employee satisfaction, and enables business growth. Compliance creates a foundation of professionalism that enhances reputation and stability.

Benefits of Compliance:

• Avoiding Penalties and Fines
  Compliance with Singapore’s regulations helps prevent fines, legal complications, and potential shutdowns.
• Building Customer Confidence
  Customers value establishments that follow high standards of hygiene and safety, contributing to repeat visits and positive word-of-mouth.
• Supporting Employee Satisfaction
  Ensuring fair treatment and safe working conditions helps attract and retain talent, fostering a supportive workplace.

Example: A compliant, well-regarded restaurant gains customer trust, attracting more repeat business and loyal staff members.

Summary

For new restaurant owners in Singapore, prioritising compliance with local regulations, from securing essential licences to adhering to labour laws and food safety standards, is crucial for success. Following these guidelines ensures a smooth, legally sound operation, helps build a strong reputation, and contributes to long-term business growth.

Using a Company Incorporation Service as an extension of your team

Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email [email protected], or use our contact form to get started.

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