Food business has always been a profitable venture in most cases. It is often considered a good move to start a food based business because it can withstand the rigors of recession and other economic downturns. Yes, even the best of food businesses might take a beating during economic slowdown and recession. This is because families and individuals might spend less money on eating outside their homes. But these will be at best temporary and for a limited period of time.
Things will bounce back sooner than later. This is the same pattern across the entire world and Singapore is also no exception. There is no doubt that when it comes to investment opportunities for foreign investors in food and beverages industry, Singapore has quite a few things to offer. New catering and restaurants can be set up and also there is scope for expanding existing small restaurants and eateries and of course the big one.
Hence if you are looking for a business opportunity in Singapore, then it would not be a bad idea to start a food and allied company.
While there is a big demand for restaurants and hotels in Singapore at all levels, foreign entrepreneurs have to keep in mind a few things. There are some statutory rules and regulations which must be adhered to before opening a restaurant in Singapore.
If you are one such entrepreneur from a foreign country you must hire the services of qualified legal and other personnel who can help you with the entire company incorporation and other processes.
As an entrepreneur opening a food business, it is also important that you also obtain the right food license apart from going through the various processes and requirements associated with company formation.
You could either have a restaurant where food is served to customers visiting your outlet. On the other hand, you also could get into catering business where you could execute orders based on phone calls, online bookings and also through other modes of online and other means of communication. It does not matter as to which type of food outlet you are planning to set up.
What is important is the need to follow the registration procedure as laid down by the Government of Singapore. You must get started by choosing an ideal location and also choose a suitable name for the outlet which you wish to set up in Singapore.
Even if you are into the business of delivering food to the homes of the customers, you are required to follow the guidelines, rules and regulations as far as hygiene norms as required by NEA or National Environment Agency. Additionally there are other licenses that are also required when starting such outlets in Singapore.
It also would be pertinent to mention here that you might also require an import license if you are importing some food stuff, machinery, ingredients and even technology for setting up such a catering unit in Singapore. You should also bear in mind that the food license and catering license are not exactly the same though there could be some areas where they could overlap one another. Hence it would be advisable to take the help and assistance of professionals to get the job done rather than you trying to do it on your own.
If you are running a catering unit, then it is quite likely that you will be making the food in some premises, while your catering unit and office could be located in some other place. You must ensure that the premises where the food items are being made should also be registered and a certificate of food hygiene must be obtained from the respective authorities. This again is a cumbersome and complex process and it is best done by those who have the required experience and expertise.
Apart from all the above, there also could be some other permissions which should be obtained before you can start your catering business. These could pertain to the local income tax registration, sales tax and other taxes related permissions and certificates.
Yes it is a fact that catering and food business is a lucrative proposition for foreign entrepreneurs in Singapore. But you should without any doubt hire the right professionals for getting the right statutory approvals and permissions.