Cleaning Business Licence
- a22162
- Jul 21
- 12 min read
Singapore Cleaning Business Licence Guide
In Singapore, if your business offers general cleaning services at premises or public places, you are required to obtain a Cleaning Business License from the National Environment Agency (NEA).
Here's a breakdown of key information regarding this license:
1. Who Needs It?
Businesses offering general cleaning services in commercial, office, food and beverage, and conservancy sectors.
This includes supplying cleaners to other cleaning businesses.
Businesses providing housekeeping services to hotels, hostels, and serviced apartments also need this license.
Companies employing in-house cleaners for their own premises are generally exempted.
2. License Classes (Introduced January 1, 2024): The NEA has revised its framework to include three classes of cleaning business licenses, each with different requirements:
Class 1 License:
Requires a higher paid-up capital (at least S$250,000).
Cleaning workforce must be trained in at least 3 Singapore Workforce Skills Qualifications (WSQ) training modules.
Demonstrates advanced capabilities for larger cleaning projects.
Class 2 License:
Requires a paid-up capital of at least S$25,000.
Requires bizSAFE certification (Workplace Safety and Health Council program).
Class 3 License:
Available to new businesses and existing licensees who may not immediately meet Class 1 or 2 requirements.
It is a non-renewable, transitional license.
3. Key Requirements for Application:
Business Registration: Your business must be registered with the Accounting and Corporate Regulatory Authority (ACRA) Singapore or the Registry of Societies (ROS).
Trained Employees:
New Applicants: Must have at least one employee who has:
No less than 2 years of practical experience in supervising cleaning work, OR
Attended specific training modules under the Environmental Cleaning (EC) Singapore WSQ (e.g., "Supervise Service Operations" and "Demonstrate and Apply Understanding of Cleaning Methods and Processes"), OR
Attended relevant Technical Skills and Competencies (TSC) modules within the Skills Framework for Environmental Services.
Ongoing Training: A significant percentage of your employees (e.g., 50% for initial application) must be properly trained in relevant modules under the Singapore Workforce Development Agency framework. For license renewal, all staff should have been trained.
Progressive Wage Model (PWM): You must submit a Progressive Wage Plan that adheres to NEA standards, outlining fair wages and career progression for resident cleaners.
Financial Capability (for Class 1 & 2): Provide proof of paid-up capital or statement of accounts (for non-incorporated entities) showing net worth meets the required capital.
Track Record (for Class 1 & 2 renewals, and Class 3 new applicants): For Class 1, you need at least one ongoing or completed cleaning contract in the 12 months prior to application.
BizSAFE Certification (for Class 2 & 1): You must achieve at least bizSAFE Level 3 certification, demonstrating a safety management system.
Employee Contracts: You are required to have written employee contracts.
4. Application Process and Fees:
Platform: Applications are submitted online via the GoBusiness Licensing portal.
Fee: The license fee is typically S$130 (payable upon approval).
Processing Time: It generally takes approximately 30 working days to process and issue a license, assuming all requirements are met.
Validity: Licenses are valid for 1 year and can be renewed annually (except for Class 3). Licenses issued under the revised framework (from Jan 2024) are valid for 2 years.
Renewal: You can submit your renewal application up to 90 calendar days before your current license expires.
5. Penalties for Operating Without a License: It is an offense to operate a cleaning business without a valid license. Penalties can include fines of up to S$10,000 or 12 months imprisonment, or both. Service buyers engaging unlicensed cleaning businesses can also face penalties.
Progressive Wage Plan
In Singapore, the Progressive Wage Model (PWM) is a crucial component of the cleaning business license. It's designed to uplift the wages and skills of lower-wage workers, specifically Singapore citizens and Permanent Residents (PRs), in various sectors, including cleaning.
Here's a detailed breakdown of the Progressive Wage Plan for the cleaning industry:
What is the Progressive Wage Model (PWM)?
The PWM is a wage structure that helps to increase the wages of workers through skills upgrading and productivity improvements. It's a "wage ladder" that provides a clear pathway for cleaners to advance in their careers, with their pay linked to their skills, experience, and productivity.
Key Objectives of the PWM:
Uplift Wages: Ensure that cleaners receive fair and progressive wages that commensurate with their skills and productivity.
Skills Upgrading: Encourage continuous training and upskilling of cleaners to improve their capabilities and professionalism.
Productivity Improvement: Drive productivity enhancements within the cleaning industry through better processes, technology adoption, and a more skilled workforce.
Career Progression: Provide clear career pathways for cleaners, allowing them to take on higher-value jobs and earn more.
Who is Covered by the Cleaning PWM?
The PWM requirements are mandatory and cover all Singapore citizens and Permanent Residents (PRs) employed in:
Outsourced cleaning jobs: This applies to cleaning companies licensed by the NEA.
In-house cleaning jobs: This applies to companies that employ foreign workers for their in-house cleaning needs.
Core Components of the Cleaning PWM:
Wage Requirements:
The PWM sets out minimum basic wage levels for different job roles within the cleaning sector (e.g., General Cleaner, Multi-skilled Cleaner, Supervisor, Truck Driver).
These minimum wages are structured to increase year-on-year over a defined period (e.g., currently planned until at least 2029).
Wages for part-time workers are pro-rated based on the basic PWM wage for full-time workers with similar job scopes.
PWM Bonus: In addition to the basic wage, eligible cleaners must receive a Progressive Wage Model (PWM) bonus. For the cleaning sector, this is currently set at a minimum of 2 weeks of basic monthly wages for eligible full-time and part-time resident cleaners who have worked for the same employer for at least 12 months.
Training Requirements:
Cleaners must meet specific training requirements to progress up the PWM ladder. This typically involves attaining Workforce Skills Qualification (WSQ) Statement of Attainments under the Skills Framework for Environmental Services.
For outsourced cleaners, cleaning companies must ensure their cleaners complete at least one Workplace Safety and Health (WSH) module and one core WSQ module from the approved lists. For Class 1 licenses, a higher number of WSQ modules (at least 3) are required.
For in-house cleaners, employers must ensure their cleaners meet the in-house PWM training requirement of any one WSQ course OR one in-house training program. Employers are expected to maintain supporting documentation for their in-house training programs and attendance records.
How is the PWM Implemented and Enforced?
Licensing Condition: For cleaning businesses, compliance with the PWM is a mandatory condition for obtaining and renewing their Cleaning Business License from the NEA.
Regular Reviews: The Tripartite Cluster for Cleaners (TCC), comprising representatives from unions, employers, and the government, regularly reviews and updates the PWM wage and training schedules to ensure they remain relevant and progressive.
Enforcement: The NEA and Ministry of Manpower (MOM) conduct enforcement checks to ensure licensed cleaning businesses adhere to the PWM requirements. Non-compliance can lead to warnings, fines (up to S$5,000), or even suspension or revocation of the cleaning business license.
Work Pass System: For companies hiring foreign workers, compliance with PWM for their local employees is linked to their eligibility for work pass applications and renewals.
Progressive Wage Portal (PW Portal): Employees can use this portal to check their salary information and ensure their employers are paying them correctly according to the PWM.
Benefits of the PWM:
For Cleaners:
Higher and more stable wages.
Clear career progression pathways.
Enhanced skills and professionalism.
Improved dignity and respect for the cleaning profession.
For Businesses:
More skilled and productive workforce.
Reduced staff turnover due to better wages and career prospects.
Improved service standards and quality for clients.
Positive corporate image and reputation.
For Singapore:
Addresses income inequality and uplifts lower-wage workers.
Promotes a more productive and professional workforce across key sectors.
Key considerations for cleaning businesses:
Staying Updated: It's crucial for cleaning businesses to stay informed about the latest PWM wage schedules and training requirements, as these are regularly updated.
Training Investment: Businesses need to invest in training for their cleaners to ensure they meet the PWM training requirements and can progress in their careers. Various government grants and schemes (e.g., Workfare Skills Support scheme, Progressive Wage Credit Scheme) are available to help offset training costs.
Cost Management: While the PWM leads to increased labor costs, it also encourages businesses to adopt technology and improve productivity to manage these costs sustainably. Service buyers are also encouraged to adopt outcome-based contracts, which incentivize productivity and better outcomes rather than just headcount.
The Progressive Wage Model is a fundamental part of Singapore's strategy to create a more inclusive and skilled workforce, and it plays a vital role in ensuring fair and sustainable employment practices within the cleaning industry.
Overall Financial Commitment
When considering the fees associated with setting up and operating a cleaning business in Singapore, it's important to differentiate between the government licensing fees and professional service fees.
1. Government Fees (National Environment Agency - NEA)
The primary and mandatory fee for the Cleaning Business License is charged by the NEA.
Application/Licence Fee: S$130
This fee is payable upon approval of your application by the NEA.
This fee applies to both new applications and renewals.
Important Note: While the license used to be valid for 1 year, for licenses issued under the revised framework from January 1, 2024, they are valid for 2 years. The S$130 fee still applies per application/renewal cycle.
2. Other Costs/Fees
Beyond the direct NEA licensing fee, you should budget for several other costs:
Business Registration Fees (ACRA):
Before applying for the NEA cleaning license, your business must be registered with the Accounting and Corporate Regulatory Authority (ACRA).
The fee for registering a company (Private Limited Company) is generally S$300.
Registering a sole proprietorship or partnership is typically less expensive (e.g., S$30 for1 year or S$90 for 3 years renewal for a sole proprietorship).
Training Costs (WSQ Modules):
To meet the Progressive Wage Model (PWM) and license requirements, your Singaporean and PR cleaners must undergo specific Workforce Skills Qualification (WSQ) training modules.
The cost of these courses can vary depending on the training provider and the specific modules. However, there are often government subsidies available (e.g., SkillsFuture, Workfare Skills Support Scheme) that can significantly reduce the out-of-pocket training costs for eligible employees and employers.
BizSAFE Certification Costs:
For Class 1 and 2 licenses, you'll need BizSAFE certification (minimum Level 3 for Class 2).
There are costs associated with engaging approved auditors or consultants to help you develop and implement a Workplace Safety and Health (WSH) management system to achieve this certification. These costs vary depending on the size and complexity of your operations.
Professional Service Fees:
If you engage business consultants, HR consultants, or legal firms to help with your license application, PWM compliance, business setup, or other advisory services, their fees will vary widely based on the scope of work and the firm's rates.
These fees can range from a few hundred to several thousand dollars, depending on the complexity of your situation and the level of support you require.
Paid-Up Capital (Not a Fee, but a Requirement):
Remember that Class 1 and Class 2 licenses have minimum paid-up capital requirements (S$250,000 for Class1, S$25,000 for Class 2). This is money you need to have in your business, not a fee paid to the government.
Other Operational Costs:
Equipment, cleaning supplies, employee salaries (including PWM-mandated wages and bonuses), rental of office/storage space, insurance, marketing, and transport are ongoing operational costs that need to be factored into your budget.
In summary, while the NEA cleaning business license fee itself is a relatively low S$130, the overall financial commitment for setting up and running a compliant cleaning business in Singapore, especially one that meets Class 1 or 2 requirements and adheres to the PWM, will be significantly higher when accounting for training, safety, and operational expenses.
Bestar Professional Service Fees
Professional service fees can be a significant part of your initial setup and ongoing compliance costs. Singapore's regulatory environment, while efficient, is also quite thorough, making professional guidance valuable.
It's important to note that these fees are highly variable based on:
Scope of Services: Are you looking for a one-off consultation, full end-to-end setup, or ongoing retainer services?
Complexity of Your Business: A more complex business structure or unique operational challenges will likely incur higher fees.
Here's a breakdown of Bestar professional service fees in Singapore for a cleaning business:
1. For Business Setup & Licensing
Bestar offers packages that cover company incorporation and initial compliance.
Company Incorporation Package:
Range: S$700 − S$3,000+ (one-off)
What it includes: ACRA company registration, provision of a company secretary (mandatory in Singapore, free for the first year), registered office address (often S$180 for one year), drafting of company constitution, assistance with opening a corporate bank account.
Specific to Cleaning License: Bestar may offer specific packages or add-ons for the NEA Cleaning Business License application process, which would involve guiding you through the documentation, PWM plan, and submission. This could be an additional S$500 − S$2,000+ on top of the incorporation fee, depending on the complexity and how much hand-holding you need.
Ongoing Corporate Secretarial Services (Annual):
Range: S300−S1,000+ per year
What it includes: Maintaining statutory records, preparing and filing Annual Returns with ACRA, holding Annual General Meetings (AGMs), processing changes to company particulars (directors, address, etc.).
General Business Advisory/Consultation:
Hourly Rates: S100−S500+ per hour (Entry-level to highly experienced)
Daily Rates: S3,000−S20,000+ per day (especially for specialized strategy workshops or high-demand experts).
Project-Based: This can vary widely depending on the project scope (e.g., market research, business plan development, efficiency optimization).
2. For PWM Compliance & Workforce Management
HR consulting is crucial for navigating the Progressive Wage Model (PWM) and broader HR compliance.
PWM Compliance Advisory:
One-off Consultation/Setup: S$500 − S$3,000+
This covers an initial assessment of your current wage structure, developing a compliant Progressive Wage Plan, advising on training requirements, and setting up relevant HR policies.
Ongoing Retainer (Monthly/Yearly): S$50 − S$200+ per employee per month, or a fixed monthly retainer of S500−S2,000+ for smaller businesses.
This includes continuous monitoring of PWM updates, payroll advisory, assistance with training matrix, employee contract reviews, and general HR support.
Payroll Services:
Monthly Retainer: S$200 − S$400+ for a minimum number of employees, plus S10−S20 per additional employee.
What it includes: Monthly payroll processing, CPF contributions, annual IR8A forms.
Employee Handbook & Policy Development:
Range: S$1,000 − S$5,000+ depending on customization and complexity.
3. For Contracts & Specific Legal Advice)
While Bestar handles routine compliance, Bestar is also needed for more complex legal matters.
General Business Law Consultation:
Hourly Rates: S250−S800+ per hour (Junior to Senior Partner rates)
Some firms offer initial consultations at a competitive fixed fee (e.g., S$500).
Contract Drafting/Review:
Service Agreements with Clients: S$1,000 − S$5,000+ per contract, depending on complexity.
Employment Contracts: S$500 − S$2,000+ per standard template, plus more for highly customized ones.
Partnership/Shareholders' Agreements: S$2,000 − S$10,000+ for more complex structures.
Intellectual Property (e.g., Trademark Registration):
S1,000−S3,000+ per trademark application (includes professional fees and government filing fees).
Investing in professional services upfront can save you from costly mistakes and non-compliance issues down the line, especially with the intricacies of Singapore's licensing and labor regulations like the PWM.
Important Note: The information provided is a general guide. It's always recommended to refer to the official GoBusiness Singapore and NEA websites for the most current and detailed requirements, as regulations can change.
How Bestar can Help
Cleaning Business Licence
Starting and running a cleaning business in Singapore, especially with the strict licensing requirements and the Progressive Wage Model (PWM), can be complex. This is where professional assistance can be incredibly valuable. Bestar's various expertise includes:
Specializing in company incorporation, licensing, and general business strategy.
Focusing on workforce planning, training, and especially compliance with the Progressive Wage Model.
For navigating legal structures, and contracts.
Here's how Bestar can help:
1. Navigating the Cleaning Business License Application:
Understanding Requirements: The NEA Cleaning Business License has specific criteria (Class 1, 2, or 3, paid-up capital, trained employees, PWM). Bestar can clarify these requirements and help you determine which license class is most suitable for your business model.
Documentation Preparation: We can guide you through gathering and preparing all the necessary documents, such as ACRA registration details, financial statements, and employee training records.
Progressive Wage Plan Development: This is a critical and often intricate part of the application. Bestar can help you:
Understand PWM Wage Schedules: Interpret the multi-year wage increments for different cleaning job roles (General Cleaner, Multi-skilled Cleaner, Supervisor, etc.).
Develop a Compliant Wage Plan: Structure your compensation and benefits to meet the PWM's basic wage and bonus requirements for your Singapore citizen and PR employees.
Training Strategy: Advise on the mandatory WSQ training modules for your cleaners, help identify suitable training providers, and ensure your training plan meets NEA's criteria.
Payroll System Setup: Ensure your payroll system is capable of accurately tracking and implementing PWM wages and bonuses.
Application Submission: While the GoBusiness portal is user-friendly, Bestar can assist in the actual online submission, minimizing errors and delays.
Liaison with Authorities: In case of queries or clarifications from NEA, we can act as an intermediary, streamlining communication.
2. Ensuring Compliance (Beyond Initial Licensing):
Ongoing PWM Compliance: The PWM is dynamic with yearly wage increments. Bestar can provide ongoing support to ensure you remain compliant with the latest PWM updates.
Training Compliance: Help you monitor and manage your employees' training progress to ensure they meet the ongoing WSQ requirements for license renewal.
BizSAFE Certification: For Class 1 and 2 licenses, BizSAFE certification is mandatory. Bestar can guide you through the process of developing and implementing a Workplace Safety and Health (WSH) management system to achieve the required BizSAFE level.
Employee Contracts: Ensure your employment contracts for cleaners are compliant with Singapore's labor laws and reflect the PWM requirements.
Record Keeping: Advise on maintaining proper records of wages, training, and other compliance-related documentation, which may be subject to NEA audits.
3. Business Strategy and Operations:
Business Plan Development: For new businesses, Bestar can help create a comprehensive business plan, including market analysis, service offerings, pricing strategies, and financial projections.
Efficiency and Productivity: With rising labor costs due to PWM, Bestar can advise on strategies to improve operational efficiency, such as implementing outcome-based contracts.
Talent Acquisition and Retention: Help you attract and retain skilled cleaners by developing competitive compensation packages and career development plans, which is crucial given the PWM's focus on progression.
Financial Management: Provide advice on budgeting, cash flow management, and exploring relevant grants and subsidies (e.g., Workfare Skills Support Scheme, Productivity Solutions Grant) to offset costs associated with training and wage increments.
4. Mitigating Risks:
Avoiding Penalties: By ensuring full compliance with NEA licensing and PWM requirements, Bestar help you avoid hefty fines, license suspension, or even imprisonment that can result from non-compliance.
Legal Protection: Bestar can help draft robust service agreements with clients.
Reputation Management: Operating a compliant and ethical cleaning business enhances your reputation, which is vital for attracting and retaining clients in Singapore.
In essence, engaging Bestar can save you significant time, effort, and potential costs by streamlining the complex processes of licensing and compliance, allowing you to focus on your core business operations and growth. Given Singapore's stringent regulatory environment, our expertise can be an invaluable asset for any cleaning business.
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