Ultimate Guide: How to Open a Restaurant in Singapore (2025 Edition)
- a22162
- Oct 7
- 8 min read
Opening a Restaurant in Singapore
Ultimate Guide: How to Open a Restaurant in Singapore (2025 Edition)
Singapore's dynamic F&B scene is a magnet for culinary entrepreneurs worldwide. However, navigating the city-state’s strict regulatory environment is crucial for success. This comprehensive, SEO-optimized guide breaks down the essential steps, licenses, and costs to help you launch your dream restaurant in Singapore.
1. The Blueprint: Concept, Market, and Business Planning
Before signing a lease or hiring a chef, your foundation must be rock-solid.
Define Your Concept & Target Audience
Unique Selling Proposition (USP): What makes your restaurant stand out? Is it a novel cuisine, an exceptional dining experience, or a niche dietary focus (e.g., vegan, farm-to-table)?
Market Analysis: Study local consumer trends. Identify your core customer base (e.g., CBD professionals, young families, tourists) and research competitors to ensure your pricing and offering are competitive.
Business Plan: Draft a detailed plan covering your menu strategy, operational model (Dine-in, delivery focus, etc.), staffing needs, marketing strategy, and a 3-5 year financial forecast. This is non-negotiable for securing funding and guiding your decisions.
Secure Funding and Budgeting
Opening a restaurant in Singapore requires substantial capital, often ranging from S$50,000 to over S$600,000, depending on scale and location. Key startup costs include:
Cost Component | Estimated Range (SGD) | Notes |
Rent & Deposit | S$10,000 – S$60,000+ | Typically 3 to 6 months' rent as a security deposit. Location is the biggest variable. |
Renovation & Fit-Out | S$30,000 – S$150,000+ | Includes interior design, electrical load upgrades, and mandatory kitchen systems (grease trap, exhaust ducting). |
Kitchen Equipment | S$5,000 – S$50,000+ | Depends on your menu complexity. Consider leasing or buying used to manage cash flow. |
Initial Inventory & Working Capital | S$10,000 – S$100,000+ | Stock, staff salaries for the first 3-6 months, and unexpected costs. |
Licensing Fees | Approx. S$315 (ACRA) + S$195/year (SFA) + others | See Section 3 for a detailed breakdown. |
2. Company Incorporation and Legal Structure
Your business must be officially registered with the Accounting and Corporate Regulatory Authority (ACRA).
Choose a Business Structure
The most common and recommended structure for F&B businesses in Singapore is a Private Limited Company (Pte. Ltd.).
Benefits: Limited liability protection for your personal assets, higher credibility, and eligibility for tax incentives and government grants.
Requirements: Must appoint at least one local resident director and a company secretary. Minimum paid-up capital of S$1.
Process: Register your company name and details via ACRA's BizFile+ portal (Government fee approx. S$315).
Foreign Entrepreneurs
If you are a foreigner, you will typically need to apply for an EntrePass through the Ministry of Manpower (MOM) to be eligible to start and operate your company in Singapore.
3. Mandatory Licenses and Permits
Regulatory compliance is a major hurdle. You will need approvals from various agencies, primarily the Singapore Food Agency (SFA).
Core Restaurant Licenses
License/ Certification | Agency | Purpose | Annual Fee (Approx.) |
Food Shop Licence | SFA | MANDATORY for all establishments selling food and/or drinks (restaurants, cafes, etc.). Requires pre-licensing inspection. | S$195 |
Basic Food Hygiene Course | SFA | MANDATORY for all food handlers. Staff must pass this course to be certified. | Varies by provider |
Liquor Licence (Optional) | Singapore Police Force (SPF) | Required if you plan to sell or serve alcohol. Fees vary significantly based on class and operating hours. | S$1,329 – S$1,740 (for 2 years) |
Signage Licence (Optional) | URA/BCA | Required for displaying external signboards. | Varies by size and location |
Halal Certification (Optional) | MUIS | Required to cater specifically to the Muslim community. Involves strict compliance with ingredient sourcing and staffing. | Varies by floor area |
Compliance Prerequisites
Before the SFA grants the Food Shop Licence, your premises must comply with:
Code of Practice on Environmental Health (COPEH): Guidelines on kitchen design, layout, sanitary facilities, waste management, and ventilation.
Land Agency Approval: Ensure your chosen premises has the correct "Change of Use" approval from the URA (Urban Redevelopment Authority) or HDB (Housing & Development Board) for use as a restaurant.
Fire Safety Certificate (FSC): Your property owner must have a valid FSC from the Singapore Civil Defence Force (SCDF).
Pro-Tip: The licensing process is often managed through the GoBusiness Licensing Portal. It is highly recommended to obtain In-Principle Approval (IPA) from SFA before commencing major renovation works.
4. Location, Design, and Operations
Choosing a Strategic Location
Foot Traffic & Demographics: Does the location match your target audience?
Accessibility: Near public transport (MRT, bus)?
Rental Cost: Ensure the rent is sustainable (ideally no more than 10-20% of projected monthly revenue).
Hiring and Training Your Team
The F&B industry faces manpower challenges.
Staffing: Hire for key roles (Chef, Manager, Service Crew) and ensure they are all fully trained and hold the Basic Food Hygiene Certificate.
Payroll & Compliance: Register as an employer with the Central Provident Fund (CPF) Board to make mandatory contributions for your Singaporean and Permanent Resident employees.
Inventory and Suppliers
Sourcing: Build long-term relationships with reliable suppliers for quality and consistency. If importing ingredients, you will need a Customs Account and possibly an Importer’s Licence from SFA.
Operational Systems: Invest in efficient POS (Point-of-Sale) systems, inventory management software, and security protocols to manage costs and enhance efficiency.
5. Marketing, Launch, and Growth
Pre-Launch Marketing
Digital Presence: A strong website, appealing social media (Instagram, TikTok), and accurate Google My Business profile are non-negotiable in Singapore's digital market.
Soft Opening: Host a private event to test operations, gather feedback, and build initial hype.
Collaborations: Engage local food bloggers and influencers to generate organic word-of-mouth.
Post-Launch Financial Compliance
GST Registration: Once your annual or projected turnover exceeds S$1 million, you must register with the Inland Revenue Authority of Singapore (IRAS) to charge and collect the Goods and Services Tax (GST, currently 9%).
Bookkeeping: Maintain meticulous records for tax filings, financial forecasting, and cash flow management.
Summary Checklist for Opening a Restaurant in Singapore
Step | Action | Agency/Requirement |
Planning | Business Plan & Financial Forecast | Comprehensive Strategy |
Legal Setup | Incorporate Company | ACRA (Pte. Ltd.) |
Permits (Site) | Obtain Land Agency Approval | URA/HDB |
Compliance | Ensure COPEH & Fire Safety Compliance | SFA, SCDF |
Core License | Apply for Food Shop Licence | SFA (via GoBusiness) |
Staff Training | Certify All Food Handlers | Basic Food Hygiene Course |
Operations | Secure Suppliers & Install POS | Importer's Licence (if needed) |
Marketing | Build Digital Presence & Launch Plan | Google My Business, Social Media |
Opening a restaurant in Singapore is a challenging but ultimately rewarding venture. By meticulously planning your concept, securing the necessary Singapore restaurant licenses, and focusing on operational efficiency, you can establish a successful and thriving culinary business in one of Asia's most exciting food destinations.
The Ultimate Guide: How Bestar Singapore Can Help You Open a Restaurant in Singapore (2025 Edition)
Ultimate Guide: How to Open a Restaurant in Singapore (2025 Edition)
Starting a restaurant in Singapore is an exciting venture, but the city-state's dynamic and regulated business landscape can be complex. To navigate the crucial initial stages—from legal incorporation to securing F&B-specific licenses—partnering with a reputable corporate services provider like Bestar Singapore is not just helpful, it's a strategic advantage.
This 2025 ultimate guide outlines the essential steps to launch your F&B business and highlights exactly how Bestar Singapore's expertise provides a seamless, compliant, and optimized path to your grand opening.
1. Laying the Legal Foundation: Company Incorporation (ACRA)
Every successful restaurant starts with a solid legal structure. Bestar Singapore specializes in transforming your vision into a legally recognized entity, ensuring compliance with the Accounting and Corporate Regulatory Authority (ACRA).
How Bestar Helps:
Selection of Business Structure: Most F&B businesses opt for a Private Limited Company (Pte Ltd) for liability protection. Bestar provides expert advice on the best structure for your long-term goals.
Seamless Company Registration: Bestar handles the entire online registration process with ACRA, including:
Name Reservation: Checking and reserving your unique restaurant name.
Document Preparation: Drafting the necessary legal documents and company constitution.
Filing & Submission: Efficiently submitting all required forms via the BizFile+ portal.
Nominee Director & Corporate Secretary: Singapore law requires a local resident director and a qualified corporate secretary. Bestar fulfills these mandatory requirements by providing:
Nominee Director Services (if you are a foreign entrepreneur).
Mandatory Corporate Secretarial Services to manage ongoing statutory compliance, a core service for all Singapore companies.
Registered Office Address: Providing a required, official registered office address for your company in Singapore.
2. Securing the F&B Premises and Essential Licenses
The single most critical step for any restaurant is securing the right licenses for its physical location. This is where the F&B sector has unique, non-negotiable compliance requirements.
How Bestar Helps with Licensing and Compliance:
While Bestar is a corporate services firm, their role is to facilitate the corporate and administrative foundation needed to apply for these F&B-specific permits:
Food Shop Licence (SFA): This is the paramount license, issued by the Singapore Food Agency (SFA). Your corporate entity must be properly incorporated before you can apply. Bestar ensures your company setup is correct to avoid delays in this application.
Pre-Application Checklist Support: Bestar can advise on the required documents (e.g., layout plan, tenancy agreement, and URA/HDB change-of-use approval) to ensure you are ready to submit your application via the GoBusiness Licensing Portal.
Additional Essential Permits: Depending on your concept, your restaurant will need other permits. Bestar ensures your corporate structure is ready to apply for these and can often assist with the administrative coordination:
Liquor Licence: Required from the Singapore Police Force if you intend to serve alcohol.
Public Entertainment Licence: Needed for businesses that feature live music, performances, or karaoke.
Signboard Licence: Required from the Building and Construction Authority (BCA) for external signage.
3. Financial, Accounting, and Tax Compliance
Running a kitchen is only half the battle; managing the financial backend is crucial for longevity. Singapore has strict tax and financial reporting requirements.
How Bestar Helps:
Accounting and Bookkeeping Services: Outsourcing your accounting to Bestar ensures your financial records are meticulously maintained and compliant with Singapore Financial Reporting Standards (SFRS). This includes:
Managing daily transactions and accounts payable/receivable.
Preparing monthly, quarterly, or annual financial reports.
Tax Compliance & Optimization: Bestar's tax experts handle all filings with the Inland Revenue Authority of Singapore (IRAS), ensuring you meet deadlines and optimize your tax position.
Corporate Tax Filing: Submitting the Estimated Chargeable Income (ECI) and annual tax returns (Form C/C-S).
GST Registration and Filing: Advising on and handling Goods and Services Tax (GST) registration if your projected annual revenue exceeds S$1 million, and managing quarterly GST filings.
Payroll Outsourcing: Managing staff payroll, CPF (Central Provident Fund) contributions, and statutory employment filings is complex. Bestar offers full payroll services to keep you compliant with the Ministry of Manpower (MOM) regulations.
Corporate Bank Account Setup: Bestar provides guidance and assistance with opening a corporate bank account with a local or international bank, a mandatory step after incorporation.
4. Manpower & Human Resource Advisory (Foreign Employees)
Singapore's F&B sector relies heavily on foreign talent, which requires strict compliance with MOM work pass regulations.
How Bestar Helps:
Work Pass Applications: Bestar assists with the application and renewal of essential work passes for foreign staff, including:
Employment Pass (EP) for foreign professionals.
S Pass for mid-skilled foreign employees.
Dependent Pass (DP) applications for family members.
Quota & Levy Advice: Providing advice on the Local Qualifying Salary (LQS) framework and calculating your restaurant’s Foreign Worker Quota to ensure your business adheres to MOM's local hiring requirements.
HR Support: Offering advisory on employment contracts, HR policies, and compliance with the Employment Act.
Your 2025 Restaurant Launch Strategy: The Bestar Advantage
Stage of Opening | Key Requirement & Singapore Authority | How Bestar Singapore Provides an Optimized Solution |
I. Legal Setup | Register Company (ACRA) | Full Company Incorporation Service: Handles name check, document drafting, ACRA filing, and appointment of mandatory Corporate Secretary/Nominee Director. |
II. Premises & Licenses | Obtain Food Shop License (SFA) | Pre-Licensing Advisory: Ensures your corporate structure is ready for SFA application and advises on pre-requisite documents (e.g., URA/HDB approval, tenancy). |
III. Finance & Tax | Tax Registration & Filing (IRAS) | Comprehensive Compliance: Handles GST registration, corporate tax filing (ECI, Form C/C-S), and full-service bookkeeping/accounting. |
IV. Manpower | Hire Staff (MOM) | Work Pass Management: Assists with Employment Pass, S Pass, and Dependent Pass applications, and advises on foreign worker quota compliance. |
By partnering with Bestar Singapore, you delegate the complexities of corporate, legal, and financial compliance to seasoned professionals. This allows you to focus your time and capital on what matters most: perfecting your menu, designing your space, and delivering an exceptional dining experience.
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