What Are The Hurdles You Might Face While Getting A Singapore Business License?

Singapore consistently ranks among the world’s easiest places to do business. Its strategic location, business-friendly policies, and strong legal framework attract entrepreneurs and multinational corporations alike. However, while incorporating a company in Singapore is relatively straightforward, obtaining the sector-specific licences required to commence operations can be more complex. Whether you are a startup or an established enterprise, anticipating these hurdles is critical to achieving a smooth launch.

1. Clarity on Licence Requirements

The most common challenge is determining which licences apply to your business. Singapore does not operate a centralised licensing system. Instead, licences are issued by different regulators depending on the activity:

• A Food & Beverage outlet requires a Food Shop Licence from the Singapore Food Agency (SFA).

• A Travel Agency must obtain a licence from the Singapore Tourism Board (STB).

• A Financial Services provider requires authorisation from the Monetary Authority of Singapore (MAS).

Importantly, incorporation with the Accounting and Corporate Regulatory Authority (ACRA) provides legal entity status but does not substitute for business licences. Starting operations without the correct licence may result in penalties.

Reference: GoBusiness – Find a licence

2. Industry-Specific Compliance Obligations

Each sector imposes its own regulatory standards:

• Healthcare providers must comply with strict hygiene, safety, and staffing requirements.

• Import/export businesses face customs documentation and trade compliance obligations.

• Private Education Institutions must be registered with the Committee for Private Education (CPE) under SkillsFuture Singapore and may also require EduTrust certification.

Reference: SkillsFuture Singapore – EduTrust

3. Documentation Accuracy

Incomplete or inaccurate submissions are a leading cause of delays. Frequent issues include:

• Errors in shareholder or director information

• Omitted compliance declarations

• Insufficient supporting documents such as business plans or premises layouts

In regulated industries, even small clerical mistakes can delay approval for weeks or months. Professional review of applications helps minimise these risks.

4. Foreign Ownership and Local Personnel

While Singapore allows 100% foreign ownership, certain statutory conditions apply:

• Every company must appoint at least one locally resident director (citizen, PR, or eligible pass holder).

• Some licences require specific local officers, such as the Key Executive under STB’s Travel Agent Licence.

Reference: ACRA – Setting up a local company

Reference: STB – Travel Agent Licence

5. Financial and Regulatory Compliance

Obtaining a licence is only the beginning. Businesses must remain compliant with ongoing obligations, including:

• Filing annual corporate tax returns with IRAS

• Holding Annual General Meetings (AGMs)

• Submitting annual returns to ACRA

• Maintaining accurate financial statements

Non-compliance can lead to fines, enforcement action, or suspension of licences. Reliable accounting and compliance support is therefore essential.

Reference: ACRA – Annual Filing Requirements

6. Renewal and Ongoing Maintenance

Most licences are valid for a limited period and require renewal. For example, the SFA Food Shop Licence is typically valid for one year and must be renewed before expiry. Businesses must also notify regulators of changes in premises, ownership, or key personnel.

Reference: SFA – Food Shop Licence

7. Navigating Bureaucracy and Technical Language

Although English is the language of business in Singapore, regulatory guidelines often contain technical or legal terminology that may be difficult for new or foreign applicants to interpret. Misunderstandings can result in rejected submissions or requests for clarification, prolonging the approval process.

8. Processing Timelines

Licence processing times vary considerably by industry and complexity:

• F&B licences can often be issued within weeks, subject to premises inspections.

• Financial services licences may take several months due to MAS’ rigorous fit-and-proper checks and capital adequacy requirements.

Reference: MAS – Licensing & Registration

How Mirr Asia Supports You

At Mirr Asia, we provide comprehensive solutions to help clients navigate both company incorporation and licensing requirements in Singapore. Our services include:

• Identifying the correct licences for your industry

• Preparing and reviewing all compliance documentation

• Providing qualified nominee directors to meet local directorship requirements

• Delivering ongoing accounting and regulatory compliance services

• Managing licence renewals and regulatory updates

With our expertise, you can focus on building your business while we handle the complexities of Singapore’s regulatory framework.

Ready to Begin?

Setting up in Singapore offers enormous opportunities, but the licensing process requires precision and foresight. Contact Mirr Asia today for a tailored consultation and start your business journey in one of the world’s most dynamic economies with confidence.