Retail businesses include stores or shops where owners sell goods or products directly to consumers. Due to quick economic developments, the retail industry in Singapore has been increasingly growing with a gross profit of around S$40 billion and more than 20,000 companies.
The retail market is steadily increasing in size year on year, and is a lucrative business to get into, especially with the emergence of e-commerce. If you have a considerable amount of capital and motivation to participate in this sector, this guide will show you how to start a retail business in Singapore.
Why Open in the Singapore Retail Landscape?
Singapore is regarded as a bustling business hub in Asia, with a large consumer base, and relatively high buying power compared to neighbouring countries. Starting and operating a retail business in Singapore can mean a steady income flow, as the economic status of the country rarely falters with economic straits.
Besides having high buying power, consumers in the country are often open to new innovations, and consumers have continuous support for brick and mortar stores, local shops, and other online or physical retail stores that cater to the market. In fact, Singapore started the Retail Industry Transformation Map (ITM) to boost retail sales in the country.
How to Start a Business in the Singapore Retail Sector
Step 1: Incorporation
The first thing you need to do before your retail company can operate is to register with the Accounting and Corporate Regulatory Authority. Fortunately, this is an easy and quick process which just involves 2 steps that could be done online within 1 hour. Simply log on to BizFile+, and fill in the appropriate application form. Submit the form along with supporting documents.
Keep in mind that the retail industry in Singapore is fully mature, thus, it is advisable to find unique services or products that aren’t currently available to increase your chance of success.
Step 2: Premise Approval
You will need a location for your Singapore retail shop. Physical stores, such as department stores, convenience stores, and food retailers, will need a commercial space to serve customers. E-commerce stores, despite being fully online, will need an office and a warehouse to store their goods.
You must be sure that your chosen business premise is approved for retail purposes. If you want to set up a retail outlet in a private property or conservation building, approval from the Singapore Urban Redevelopment Authority is compulsory to make alterations or additions to the premise.
In addition, a Certificate of Fire Safety from the Civil Defense Force of Singapore should be acquired to verify that your retail store meets fire safety requirements. If your store is based in a shopping mall, then the landlord might speed up the required approval for you.
Step 3: Get the Licenses Needed for Starting a Retail Business in Singapore
Depending on the type of products or goods that you want to sell, it is necessary to acquire the appropriate licenses. Below are basic guides to three most common forms of retail stores in Singapore, including supermarket, pharmacy, and telecommunication.
1. Supermarket Licenses
If you want to set up a supermarket that prepares and sells cooked or raw food, then it is compulsory to acquire the License of Supermarket under the Environmental Public Health Act. This license guarantees that potential owners will meet the food safety and cleanliness guidelines, as well as prevent any food-borne disease. It often takes 5 working days for processing an online application.
The Applicant can be an individual (permanent resident or Singaporean) or company which is successfully incorporated. Also, the application must include a scaled plan of the premise which shows the layout, stores, toilets, and preparation area. The design of the supermarket should comply with the Practice of Environmental Health Code.
2. Pharmacy Licenses
The first thing you need to do to set up a pharmacy store is to acquire the Pharmacy Registration Certificate from the Singapore Health Science Authority. As a first-time applicant, a business owner might nominate up to 2 employees to work as the official administrators of the company.
An application for the certification should include the following information:
- The applicant’s particulars
- The company registration number, store’s details, and layout plan with specific information on general sale areas,
- The expected opening date and operating hours of the pharmacy outlet
- Details of each area where the medicines are stored
- The particulars of the pharmacist-in-charge, which must be registered with the Pharmacy Council of Singapore and have a Poison License - Form A’ and Poison License - Form C’ to sell medicines.
Before the Certificate would be issued, a pre-approval audit of your pharmacy store will be implemented by pharmacy auditors from the Health Science Authority. The application fee is S$500. The certificate will be valid for 1 year.
3. Telecommunication Licenses
Any businesses that are planning to possess, offer, or sell telecommunication devices must acquire a License of Telecommunications Dealer.
- Class license: This form of license is basically entity-based. Nevertheless, it is compulsory to provide the Singapore Info communications Development Authority with the telephone number and address for each premise that you open to sell the telecommunication equipment. It typically takes 2 working days and costs S$50 to get this license.
- Individual license: An individual license is outlet-based or premise-based. This means all premises selling approved telecommunication equipment must acquire its own license. The applicant must be a business incorporated under the Business Registration Act, a company incorporated under the Companies Act, or a limited liability partnership incorporated under the Limited Liability Partnerships Act. It costs S$250 for each outlet, and the license can be valid for 5 years.
Enter Singapore's Retail Industry
Entering the retail sector in Singapore will require a lot of research and planning. Not to mention, major trends in the country change in a fast pace, so your company will need swift services to get your documents done.
Our team at WealthBridge has the expertise to get your papers done in a flash! Whether you're looking to incorporate your online shopping store, set up a physical store, or even provide augmented reality and digital solutions, our team can assist you in filing your applications, so you can focus on improving your product offerings.
Start with WealthBridge, and give us a call today to discuss what we can do for your business!