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Setting up a Construction Company

Updated: Sep 13, 2023


Setting up a Construction Company | Bestar
Setting up a Construction Company | Bestar

Why Set up a Construction Company in Singapore


There are many reasons why you might want to set up a construction company in Singapore. Here are some of the most common reasons:

  • Strong economy and growing construction industry. Singapore has a strong economy and a growing construction industry. This means that there is a lot of demand for construction services, which can provide you with a good opportunity to grow your business.

  • Favorable regulatory environment. The regulatory environment for construction companies in Singapore is relatively favorable. This means that it is relatively easy to set up and operate a construction company in Singapore.

  • Skilled workforce. Singapore has a skilled workforce that is well-trained in construction. This means that you will be able to find the skilled workers you need to complete your projects.

  • Strategic location. Singapore is a strategically located city-state with good connectivity to other countries in the region. This can give you access to a wider market for your construction services.

  • Pro-business environment. Singapore is a pro-business environment that is conducive to starting and growing businesses. This means that you will have access to the resources and support you need to succeed.

Of course, there are also some challenges to setting up a construction company in Singapore. These challenges include:

  • High cost of living. The cost of living in Singapore is relatively high. This can make it difficult to operate a profitable construction company.

  • Competition. The construction industry in Singapore is very competitive. This means that you will need to offer high-quality services at competitive prices in order to succeed.

  • Government regulations. There are a number of government regulations that apply to construction companies in Singapore. You will need to comply with these regulations in order to operate your business legally.

Overall, the benefits of setting up a construction company in Singapore outweigh the challenges. If you are looking to start a construction company, Singapore is a good place to do it.


Setting up a Construction Company


Here are the steps on how to set up a construction company in Singapore:

  1. Decide on a company name. The company name must be unique and cannot be the same or similar to the name of an existing company. It must also not contain any words that are restricted by the Singapore government.

  2. Register the company. You can register your company as a private limited company, public limited company, or sole proprietorship. The most common option for construction companies is a private limited company.

  3. Obtain the necessary permits and licenses. You will need to obtain a Builder's Licence from the Building and Construction Authority (BCA) in order to carry out construction work in Singapore. You may also need to obtain other permits and licenses, depending on the type of construction work you will be doing.

  4. Set up a corporate bank account. You will need to set up a corporate bank account for your construction company. This will help you to separate your business finances from your personal finances.

  5. Get business insurance. You will need to get business insurance to protect your company from financial losses in the event of an accident or other unforeseen event.

  6. Hire employees and subcontractors. As your construction company grows, you will need to hire employees and subcontractors to help you with the work.

  7. Market your construction company. You will need to market your construction company to potential clients. You can do this through online and offline channels.

Here are some additional tips for setting up a construction company in Singapore:

  • Get advice from Bestar who is familiar with the construction industry in Singapore.

  • Do your research on the construction market in Singapore.

  • Make sure you have a good understanding of the regulations and requirements for construction companies in Singapore.

  • Build a strong team of experienced and qualified construction professionals.

  • Invest in quality equipment and materials.

  • Deliver high-quality work on time and within budget.

The construction industry in Singapore is growing rapidly, so there is a lot of potential for success for new construction companies. However, it is important to do your research and plan carefully before you set up your company.



Builder Licensing

The Building and Construction Authority (BCA) of Singapore requires all builders to obtain a Builder's Licence before they can carry out construction work in Singapore. The purpose of the Builder's Licence is to ensure that builders are competent and have the necessary skills and experience to carry out construction work safely and to the required standards.


There are two types of Builder's Licences in Singapore:

  • Class 1 General Builder's Licence: This licence is for builders who carry out all types of construction work, including structural work.

  • Class 2 General or Specialist Builder's Licence: This licence is for builders who carry out specific types of construction work, such as carpentry, plumbing, or electrical work.

To obtain a Builder's Licence, you must meet the following requirements:

  • You must be a Singapore citizen or permanent resident.

  • You must have a minimum of 3 years of experience in the construction industry.

  • You must pass the BCA's Builder's Examination.

  • You must have a minimum share capital of S$300,000 for a Class 1 General Builder's Licence and S$25,000 for a Class 2 General or Specialist Builder's Licence.

You can apply for a Builder's Licence online at the BCA's website. The application process takes about 3 weeks to complete.


The fees for a Builder's Licence are as follows:

  • Class 1 General Builder's Licence: S$1,000 per year

  • Class 2 General or Specialist Builder's Licence: S$500 per year

The Builder's Licence is valid for 1 year and must be renewed annually.


If you are a builder who is not licensed, you may be fined up to S$10,000 and/or imprisoned for up to 6 months.


Here are some of the benefits of having a Builder's Licence in Singapore:

  • It gives you the legal right to carry out construction work in Singapore.

  • It shows your clients that you are a competent and experienced builder.

  • It can help you to get more work.

  • It can help you to get better prices from suppliers.

  • It can help you to get insurance at a lower cost.

If you are a builder in Singapore, it is important to obtain a Builder's Licence. This will help you to protect your business and your clients.


Who Needs a License


According to the Building and Construction Authority (BCA) of Singapore, the following builders need a license:

  • Builders who carry out building works where plans are required to be approved by the Commissioner of Building Control.

  • Builders who work in specialist areas, which have a high impact on public safety.

The following are considered as specialist areas:

  • Structural works

  • Building services (e.g., electrical, plumbing, mechanical)

  • Fire protection works

  • Lift and escalator works

  • Demolition works

  • Earthwork and foundation works

  • Renovation works

If you are unsure whether you need a license, you should contact the BCA for clarification.

Here are some of the penalties for carrying out construction work without a license:

  • Fine of up to S$10,000

  • Imprisonment of up to 6 months

  • Suspension or cancellation of the license



Types of License


There are two main types of Builder's Licences in Singapore:

  • Class 1 General Builder's Licence: This licence is for builders who carry out all types of construction work, including structural work.

  • Class 2 General or Specialist Builder's Licence: This licence is for builders who carry out specific types of construction work, such as carpentry, plumbing, or electrical work.

There are also six types of specialist builder's licenses:

  • Piling works

  • Ground support and stabilisation works

  • Site investigation work

  • Structural steelwork

  • Pre-cast concrete work

  • In-situ post-tensioning work

To obtain a Class 1 General Builder's Licence, you must meet the following requirements:

  • You must be a Singapore citizen or permanent resident.

  • You must have a minimum of 3 years of experience in the construction industry.

  • You must pass the BCA's Builder's Examination.

  • You must have a minimum share capital of S$300,000.

To obtain a Class 2 General or Specialist Builder's Licence, you must meet the following requirements:

  • You must be a Singapore citizen or permanent resident.

  • You must have a minimum of 2 years of experience in the construction industry.

  • You must pass the BCA's Builder's Examination.

  • You must have a minimum share capital of S$25,000.

You can apply for a Builder's Licence online at the BCA's website. The application process takes about 3 weeks to complete.


The fees for a Builder's Licence are as follows:

  • Class 1 General Builder's Licence: S$1,800 per year

  • Class 2 General or Specialist Builder's Licence: S$1,200 per year

  • Specialist Builder's Licence: S$1,500 per year

The Builder's Licence is valid for 1 year and must be renewed annually.


Licensing Requirements


The licensing requirements for builders in Singapore are as follows:

  • Singapore citizenship or permanent residency: You must be a Singapore citizen or permanent resident to obtain a Builder's Licence.

  • Minimum experience: You must have a minimum of 3 years of experience in the construction industry to obtain a Class 1 General Builder's Licence. You must have a minimum of 2 years of experience in the construction industry to obtain a Class 2 General or Specialist Builder's Licence.

  • Passing the Builder's Examination: You must pass the BCA's Builder's Examination to obtain a Builder's Licence.

  • Minimum share capital: You must have a minimum share capital of S$300,000 for a Class 1 General Builder's Licence and S$25,000 for a Class 2 General or Specialist Builder's Licence.

In addition to the above requirements, you must also appoint an Approved Person (AP) and a Technical Controller (TC) for your construction business. The AP is responsible for the overall management of the business, while the TC is responsible for the execution of the construction works.


The AP must meet the following requirements:

  • Be a Singapore citizen or permanent resident.

  • Have a minimum of 3 years of experience in the construction industry.

  • Be a registered builder with the BCA.

The TC must meet the following requirements:

  • Be a Singapore citizen or permanent resident.

  • Have a minimum of 5 years of experience in the construction industry.

  • Have a relevant engineering degree from a recognized institution.

You can apply for a Builder's Licence online at the BCA's website. The application process takes about 3 weeks to complete.


The fees for a Builder's Licence are as follows:

  • Class 1 General Builder's Licence: S$1,800 per year

  • Class 2 General or Specialist Builder's Licence: S$1,200 per year

  • Specialist Builder's Licence: S$1,500 per year

The Builder's Licence is valid for 1 year and must be renewed annually.


How Bestar can Help


Bestar is a company formation and corporate secretarial services provider in Singapore. We can help you set up a construction company in Singapore by providing the following services:

  • Company formation: Bestar can help you register your company with the Singapore Companies Registry. We can also help you choose the right company name, structure, and shareholders.

  • Licenses and permits: Bestar can help you obtain the necessary licenses and permits required for a construction company in Singapore. This includes the Builder's Licence, Approved Person (AP) registration, and Technical Controller (TC) registration.

  • Accounting and taxation: Bestar can help you set up your company's accounting and taxation systems. We can also help you file your company's taxes.

  • Human resources: Bestar can help you with payroll and benefits administration.

  • Professional and compliance: Bestar can provide you with professional advice and assistance on a variety of matters, such as contracts, employment law, and company law. We can also help you stay compliant with Singapore's laws and regulations.

In addition to these services, Bestar can also provide you with other services that may be helpful to your construction company, such as business registration, and trademark registration.


If you are interested in setting up a construction company in Singapore, contact Bestar for a consultation. We can assess your needs and provide you with a customized quote for our services.


Here are some of the benefits of using Bestar to set up a construction company in Singapore:

  • We have a team of experienced professionals who can help you with all aspects of the process.

  • We are familiar with the laws and regulations governing construction companies in Singapore.

  • We can help you get the necessary licenses and permits quickly and efficiently.

  • We can provide you with ongoing support and advice.

If you are serious about setting up a construction company in Singapore, contact Bestar today. We can help you get started on the right foot and ensure that your company is successful.




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