Navigating the Secondhand Goods Dealer (SHGD) License in Singapore
- Roger Pay
- 2 days ago
- 7 min read
Singapore SHGD License Guide
Navigating the Secondhand Goods Dealer (SHGD) License in Singapore
If you are planning to buy or sell used items in Singapore—whether it’s vintage watches, electronics, or designer handbags—obtaining a Secondhand Goods Dealer (SHGD) License is a critical legal requirement.
Under the Secondhand Goods Dealers Act, the Singapore Police Force (SPF) regulates these transactions to prevent the trade of stolen property. Operating without a license can lead to heavy fines or even imprisonment.
Do You Need an SHGD License?
Not every "pre-loved" business requires a license. The requirement depends strictly on the type of goods you handle.
1. Regulated Goods (License Required)
You must apply for a license if you deal in:
Jewelry and Precious Metals: Gold, silver, platinum, and items set with gemstones.
Electronics: Mobile phones, laptops, tablets, and cameras.
Luxury Goods: Branded watches and high-end designer bags.
Scrap Metal: Copper, brass, and industrial cables.
2. Exempted Goods (No License Required)
You generally do not need a license for:
Books, magazines, and newspapers.
Furniture and household appliances (excluding electronics).
Clothes and shoes (non-luxury).
Vinyl records, CDs, and DVDs.
Key Requirements & Eligibility
To qualify for an SHGD license, the applicant must meet the following criteria:
Business Registration: You must have a valid ACRA-registered business entity.
Fit and Proper Person: The applicant (and all directors/partners) must have a clean criminal record, specifically regarding offenses involving dishonesty or the Secondhand Goods Dealers Act.
Physical Outlet: You must have a designated place of business where records can be inspected.
The Application Process
Applying for the license is done through the GoBusiness Licensing portal.
Step | Action | Details |
1 | Prepare Documents | Have your ACRA Business Profile and NRIC/FIN details ready. |
2 | Submit via GoBusiness | Log in with Singpass and select "Secondhand Goods Dealer License." |
3 | Payment | The license fee is typically S$100 per year (non-refundable). |
4 | Processing Time | Usually takes about 15 working days for approval. |
Compliance: What Happens After Approval?
Getting the license is only the first step. To stay compliant and avoid penalties, you must follow strict record-keeping rules:
Identity Verification: You must record the name, NRIC/Passport number, and address of every person you buy goods from.
The "Holding Period": You cannot sell or alter a regulated item for at least 15 days after acquiring it (unless exempted). This gives the Police time to track stolen goods.
Digital Records: All transactions must be recorded in a register (electronic or physical) and kept for at least 5 years.
Reporting Suspicion: If you suspect an item offered to you is stolen, you are legally obligated to inform the Police immediately.
Why Compliance Matters for Your Business
Beyond avoiding legal trouble, having a valid SHGD license builds customer trust. In a market where authenticity and ethics are paramount, displaying your license number on your website or at your storefront acts as a "seal of approval," signaling to customers that you are a legitimate, vetted operator.
Note: If you operate purely online but are based in Singapore, the same rules apply. The "place of business" would typically be your registered office or storage facility.
Compliance Checklist for your Staff to ensure you meet the Record-keeping Requirements under the Act
As a Secondhand Goods Dealer (SHGD) in Singapore, your primary responsibility is to ensure that your business is not used to launder stolen property.
The following Compliance Checklist is designed for you and your staff to ensure you meet the legal requirements of the Secondhand Goods Dealers Act.
Staff Compliance Checklist
1. Pre-Purchase: Customer Identity Verification
Before accepting any item, you must verify the seller’s identity.
[ ] Request Photo ID: Sighting and recording the seller’s NRIC, Passport, or FIN card is mandatory.
[ ] Record Personal Details: Enter the following into your register:
Full Name
NRIC/Passport/FIN Number
Current Address
Contact Number
[ ] Screening (SHOTS): For electronics and jewelry, check the Secondhand Goods Transaction Records System (SHOTS) via the SPF portal to ensure the item hasn't been reported stolen.
2. Item Documentation
Every transaction must be documented clearly.
[ ] Detailed Description: Record the brand, model, serial number (IMEI for phones), color, and any unique markings/scratches.
[ ] Timestamp: Record the exact date and time of the purchase.
[ ] Purchase Price: Record the amount paid to the seller.
3. The "15-Day Holding" Rule
To prevent the rapid disposal of stolen goods, items must be "quarantined."
[ ] No Immediate Resale: Ensure the item is kept for at least 15 days before being sold or altered.
[ ] Physical Accessibility: The item must remain at the licensed place of business and be available for Police inspection during this period.
4. Suspicious Transactions
Staff should be trained to identify "red flags" (e.g., seller appearing nervous, selling multiple new-in-box items at a deep discount, or refusing to show ID).
[ ] Immediate Reporting: If a transaction feels suspicious, or if SHOTS returns a "hit," notify the Police Regulatory Department immediately.
[ ] Do Not Alert the Seller: If safe to do so, stall the transaction and contact the police without tipping off the individual.
5. Record Maintenance
[ ] 5-Year Retention: All transaction records (physical or digital) must be kept for a minimum of 5 years.
[ ] Police Inspection: Records must be produced immediately upon demand by any Police Officer or the Licensing Officer.
Pro-Tip for Efficiency
Many modern secondhand dealers use digital inventory systems that automatically link to the SPF SHOTS portal. This reduces manual entry errors and ensures your records are always "inspection-ready."
Template for a Physical Transaction Logbook that your Staff can use
This template is designed to meet the mandatory record-keeping requirements under the Secondhand Goods Dealers Act. You can print this for a physical binder or replicate these columns in a spreadsheet (Excel/Google Sheets).
Secondhand Goods Transaction Logbook
Business Name: _________________________
License Number: ________________________
Date & Time | Item Description (Brand, Model, Serial/IMEI, Color) | Seller’s Full Name | NRIC / Passport / FIN | Seller’s Address | Purchase Price (S$) | "Release" Date (15 Days Later) | Staff Initials |
17/01/26 10:30 AM | iPhone 15 Pro, 256GB, Black, IMEI: 3512... | Tan Ah Kow | S1234567A | 123 Orchard Rd, #04-01, S(238881) | $800 | 01/02/26 | JW |
Instructions for Staff
To ensure this logbook remains legally compliant, please follow these rules:
Use Permanent Ink: If using a physical book, do not use pencils or erasable pens.
No Deletions: If a mistake is made, cross it out with a single line so the original entry remains legible. Do not use white-out.
Serial Numbers are Mandatory: Never leave the serial number or IMEI column blank for electronics. If a serial number is defaced or missing, do not buy the item and report it.
The 15-Day Rule: Calculate the "Release Date" by adding 15 full days to the purchase date. The item must not leave the premises or be sold before this date.
Identify Verification: You must see the original ID card. Do not accept photos or photocopies of ID.
Digital Alternative
If you prefer a digital setup, I recommend using a cloud-based sheet with "Version History" enabled. This satisfies the police requirement that records cannot be easily deleted or tampered with without a trail.
Short "Terms and Conditions" snippet for your buy-in vouchers that sellers must sign
When buying items from the public, having a signed Purchase/Buy-in Voucher is essential. It protects your business by shifting the liability to the seller if the item turns out to be stolen or counterfeit.
You can add the following snippet to the bottom of your receipts or vouchers where the seller signs.
Seller Declaration & Terms of Sale
By signing this document, the Seller (as identified above) agrees to the following:
Ownership & Title: The Seller warrants that they are the sole legal and beneficial owner of the item(s) listed and have the full right to sell them. The item(s) are free from any liens, encumbrances, or third-party claims.
Authenticity: The Seller guarantees that the item(s) are authentic and not counterfeit, stolen, or illegally obtained.
Accuracy of Information: The Seller declares that the identification details and address provided are true and accurate.
Indemnity: The Seller agrees to indemnify [Your Business Name] against any legal actions, losses, or costs arising from any breach of these warranties (e.g., if the item is later found to be stolen).
Data Privacy: The Seller consents to the collection of their personal data for the purpose of compliance with the Secondhand Goods Dealers Act and acknowledges that this data may be shared with the Singapore Police Force if requested.
Final Sale: The Seller acknowledges that this is a final sale. Once payment is received, ownership transfers immediately to the Dealer.
Signature Block
Seller’s Signature: __________________________
Date: 17/01/2026
Staff Witness Name: _________________________
Implementation Tips
Print Two Copies: One for the seller to keep as a receipt and one for your internal files (attached to your logbook record).
The "Photograph" Rule: Although not strictly mandatory for all items, it is highly recommended to take a photo of the seller holding their ID next to the item for high-value transactions (over S$500).
Payment Method: Whenever possible, pay via PayNow or Bank Transfer. This creates a digital paper trail that the Police prefer over cash transactions.
How Bestar Singapore Can Help
Applying for a Secondhand Goods Dealer (SHGD) License in Singapore involves more than just a form; it requires meticulous ACRA registration, strict adherence to SPF regulations, and ongoing compliance.
As a leading corporate services provider in Singapore, Bestar streamlines this process for you, ensuring your business remains on the right side of the law while you focus on growth.
How Bestar Singapore Empowers Your Business
Navigating the Secondhand Goods Dealer (SHGD) License in Singapore
1. End-to-End License Application Management
The application process moved exclusively to the GoBusiness portal in late 2025. Bestar manages this transition for you by:
Eligibility Assessment: We determine if your goods fall under the regulated categories (Jewelry, Electronics, Luxury Goods, etc.) to avoid unnecessary costs.
Documentation Prep: We ensure your ACRA Business Profile and "Fit and Proper" declarations are current and meet the Licensing Officer's requirements.
Submission & Liaison: Bestar acts as your professional representative, handling queries from the Police Regulatory Department (PRD) to accelerate approval.
2. Specialized Corporate Secretarial Support
An SHGD license is tied to your business entity. Bestar’s secretarial team ensures your corporate foundation is solid:
ACRA Compliance: We handle the mandatory business registration and updates required for your license.
Officer Appointments: We assist in seeking the necessary Police approval for any changes to your board of directors or management committee.
3. Compliance & Risk Mitigation
Operating in the secondhand market carries the risk of inadvertently handling stolen property. Bestar helps you set up robust internal controls:
Record-Keeping Systems: We advise on implementing digital or physical registers that comply with the 5-year retention rule.
AML/CFT Guidance: For dealers in precious stones and metals, we provide specialized advice on Anti-Money Laundering and Counter-Terrorism Financing regulations.
Why Choose Bestar?
Feature | Bestar’s Value-Add |
Expertise | Deep knowledge of SPF, MAS, and ACRA regulatory frameworks. |
Efficiency | Avoid application rejections due to "Specific Registration Requirements" (SRR) errors. |
Scalability | Support for everything from solo vintage shops to multi-outlet luxury resellers. |
Transparency | Clear, competitive fee structures with no hidden charges. |
Get Started Today
Don’t let complex licensing requirements delay your business launch. Bestar Singapore provides the professional expertise needed to secure your SHGD license and maintain high compliance standards.
Schedule a free initial consultation with Bestar to discuss your specific licensing needs
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