Thinking of Starting a Restaurant in Singapore? Read This First

Singapore, renowned as a culinary haven, is a vibrant melting pot of cultures and cuisines from around the world. This diversity creates a dynamic food scene that attracts locals, tourists, and expatriates alike, making it an exciting opportunity for aspiring restaurateurs. 

If you’re contemplating opening a restaurant in this bustling city-state, Counto is dedicated to helping entrepreneurs like you navigate the complexities of starting and running a successful restaurant in Singapore.

Business Incorporation and Registration

Before diving into the world of gastronomy, the initial step is to legally establish your business. Here’s how you can get started:

• Incorporate Your Business: Register your restaurant as a private limited company or sole proprietorship with the Accounting and Corporate Regulatory Authority (ACRA).
• Open a Corporate Bank Account: Once your business is registered, the next step is to open a corporate bank account.

~ At Counto, we prioritise your savings and efficiency over hefty fees. Our team of seasoned compliance professionals expertly handles everything from company registration to tax filing at unbeatable rates. Discover more about our cost-effective incorporation packages here. 

Restaurant Licensing and Permits

Navigating the licensing landscape is crucial for setting up your restaurant legally and successfully:

• Food Shop Licence: Apply online through the GoBusiness Licensing portal, which is essential for any establishment looking to sell food and beverages. The licence application must include a layout plan of the premises, proof of compliance with the Code of Practice of Environmental Health, and other relevant documents such as your tenancy agreement and food hygiene certificates. Read our guide on how to apply for a Food Shop Licence. 
• Additional Licences: Depending on your restaurant’s concept, you might also need a liquor licence, halal certification, and possibly an entertainment licence.

Additional Considerations When Setting Up Your Restaurant

• Register for Goods and Services Tax (GST) with the Inland Revenue Authority of Singapore (IRAS) if annual revenue exceeds S$1 million.
• Obtain import licences from SFA and Singapore Customs if importing food ingredients.
• Review the property owner’s fire safety certificate from the Singapore Civil Defence Force (SCDF).

Choosing the Right Location and Setting Up Your F&B Outlet

The success of your restaurant heavily depends on its location and how well the premises are set up:

• Location: Select a spot that maximises foot traffic while considering competition, size, and cost. Evaluate nearby competition and costs associated with the location.
• Compliance and Setup: Ensure that your premises meet SFA’s requirements for kitchen size, ventilation, and waste management. You’ll need to renovate according to the approved plans and prepare for a pre-licensing inspection by the SFA.

Staffing Your Restaurant

A competent and reliable team is the backbone of any successful restaurant:

• Hiring: You will likely need a mix of local and foreign workers. For foreign staff, ensure compliance with employment regulations and obtain the necessary work passes.
• CPF Registration: Register for Central Provident Fund (CPF) contributions for local employees, which is a mandatory social security savings plan for working Singaporeans and permanent residents. Read our CPF guide here.

Equipment and Technology Considerations

Equipping your restaurant with the right tools and technology is vital for efficient operation:

• Kitchen Equipment: Invest in essential equipment like ovens, freezers, and utensils. Opting for second-hand items can help reduce costs.
• Technology: Implement a robust Point of Sale (POS) system to streamline operations.

Developing a Solid Business Plan

A well-thought-out business plan is your roadmap to success. It should detail your restaurant concept, financial projections, operational strategies, menu pricing, and marketing tactics.

Common FAQs

1. Should I start a restaurant as a sole proprietorship or a private limited company (Pte Ltd) in Singapore?

Most experts recommend registering a restaurant business as a Pte Ltd company in Singapore, unless it is a very small-scale operation. The limited liability protection and ability to raise capital make it more suitable for a restaurant which typically requires significant startup capital and hiring of staff.

While a sole proprietorship may be simpler for a very small food business, the Pte Ltd company structure provides more benefits and flexibility for growth for most restaurant startups in Singapore.

2. What are the legal requirements for starting a restaurant as a private limited company?

• Incorporate the restaurant business as a Pte Ltd company with the Accounting and Corporate Regulatory Authority (ACRA).
• Appoint at least one resident director and company secretary who is a Singapore citizen/permanent resident.
• Open a corporate bank account after incorporation.

3. What are the government regulations that restaurants in Singapore must comply with?

a) Environmental Public Health (Food Hygiene) Regulations

• Obtain a Food Shop License from the Singapore Food Agency (SFA) to operate a restaurant.
• Submit layout plans showing the complete layout and boundaries of the restaurant premises for approval.
• Only use the licensed premises for the approved purpose stated in the licence.
• Display the licence prominently on the premises.

b) Food Hygiene Requirements

• Ensure proper storage and refrigeration of food items at required temperatures.
• Maintain cleanliness of equipment, utensils, and the premises.
• Ensure food handlers practise good personal hygiene like frequent handwashing.
• Implement time-stamping for catered foods to track holding times.
• Thaw frozen foods using approved methods only.
• Segregate storage of raw and cooked foods.
• Dispose of food unfit for human consumption properly.
• Prohibit re-freezing of thawed frozen foods.

c) Operational Requirements

• Appoint a certified food hygiene officer for the premises.
• Ensure all food handlers are registered with SFA and attend food hygiene courses.Maintain a register with details of food handlers on the premises.
• Adhere to restrictions on sale of certain food items like raw meat.

Using an 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 us at [email protected], or contact us using this form.

Here are some articles you might find helpful:

Business licences and permits

Do I need to register for GST?

How to apply for Halal certification

How to apply for a liquor licence

SSIC codes

How to find the right food suppliers