Step-by-Step Process for Starting a Restaurant in Singapore
Ever dreamt of launching your own eatery here? Uncover the essential steps on how to open a restaurant in Singapore, from business registration to crucial licensing.
19 May 2025
Zeyno
Contents
- Step 1: Register Your Business with ACRA
- Step 2: Secure a Suitable Location
- Step 3: Obtain Necessary Licenses and Permits
- Step 4: Hire and Train Staff
- Step 5: Set Up Financial and Operational Systems
- Eager to turn your culinary dream into reality in Singapore's vibrant food scene
- FAQ about Opening a Restaurant in Singapore
- Why is ACRA registration vital for opening a restaurant in Singapore
- How does location impact opening a restaurant in Singapore
- What core licenses are needed when opening a restaurant in Singapore
- What staff training is essential for opening a restaurant in Singapore
- What ACRA pitfalls impact opening a restaurant in Singapore
Step 1: Register Your Business with ACRA
Embarking on the journey of how to open a restaurant in Singapore necessitates a crucial first step: formally registering your business with the Accounting and Corporate Regulatory Authority (ACRA). This incorporation is essential as it legally establishes your restaurant as a distinct entity, separate from its owners. This separation is particularly important for liability purposes, especially if you opt for a private limited company structure, which offers protection for personal assets against business debts and lawsuits. ACRA registration also lends credibility to your venture, which is vital when dealing with suppliers, landlords, and financial institutions.
To register your business, you will typically need to prepare several key documents and pieces of information. This includes having a CorpPass account for online transactions, details of proposed company officers (directors, company secretary for Pte Ltd companies), shareholders, a registered office address in Singapore, and a proposed business name that needs to be approved by ACRA. The specific documents might vary slightly depending on whether you are registering as a sole proprietorship, partnership, or a private limited company.
Read more: Who Must Register with ACRA
Step 2: Secure a Suitable Location
Securing a suitable location is a pivotal decision when planning how to open a restaurant in Singapore, as it directly impacts visibility, accessibility, and ultimately, profitability. A key factor is aligning your chosen site with your target market. For example, a restaurant targeting office executives would benefit from a location within the Central Business District (CBD) or a business park, while a family-friendly establishment might thrive in a residential HDB estate or a suburban mall.
Entrepreneurs must also navigate land use and zoning regulations stipulated by the Urban Redevelopment Authority (URA) for private properties and the Housing & Development Board (HDB) for commercial spaces within public housing estates. Before committing to a lease, it's crucial to verify that the premises are approved for F&B use or if a Change of Use application is necessary and likely to be approved. For instance, URA’s guidelines specify permissible uses for different commercial zones, and F&B outlets often require specific approvals related to operating hours, kitchen exhaust systems, and public health.
A practical approach is to conduct manual pedestrian counts at different times of day and days of the week to estimate foot traffic; local business associations or mall operators may also provide more detailed data for specific areas in Singapore. Additionally, analyze the surrounding environment. Note the presence of anchor tenants such as supermarkets, cinemas, or major office buildings that naturally draw crowds. Investigate nearby complementary businesses and competitors to understand the existing commercial ecosystem. For locations within shopping malls, the mall management may be able to provide general footfall data for the mall or specific zones. Proximity to public transport nodes like MRT stations and bus interchanges also significantly influences foot traffic.
Step 3: Obtain Necessary Licenses and Permits
Navigating the regulatory landscape for licenses and permits is a fundamental aspect of how to open a restaurant in Singapore. The primary license required is the Food Shop Licence, issued by the Singapore Food Agency (SFA). This license categorizes F&B establishments (e.g., restaurant, cafe, canteen, food stall) and ensures compliance with food safety and hygiene standards. Applications are typically submitted online via the GoBusiness Licensing portal, and premises are subject to inspection before a license is granted.
If your restaurant plans to sell alcoholic beverages, a Liquor Licence from the Singapore Police Force (SPF) is mandatory. There are various classes of liquor licenses, depending on the type of alcohol sold, the hours of sale, and whether consumption is on or off-premises. The application process also takes place online.
Other permits may be necessary depending on your specific concept and operations. For instance, if you intend to offer Halal food, Halal certification from the Majlis Ugama Islam Singapura (MUIS) is required. Should your restaurant feature live music or other forms of public entertainment, a Public Entertainment Licence (also from SPF) will be needed.
For all businesses with an expected annual taxable turnover exceeding S$1 million must register for Goods and Services Tax (GST) with the Inland Revenue Authority of Singapore (IRAS). Furthermore, any renovation or fitting-out works will likely require approvals and a Fire Safety Certificate (FSC) from the Singapore Civil Defence Force (SCDF).
Step 4: Hire and Train Staff
A critical component of successfully learning how to open a restaurant in Singapore involves building a competent and reliable team. Recruitment best practices begin with crafting clear and detailed job descriptions that outline responsibilities, required skills, and experience for each role, from kitchen crew to service staff. Utilise a mix of recruitment channels, including online job portals like MyCareersFuture.sg, JobStreet, and industry-specific platforms, as well as leveraging professional networks and employee referrals.
Employers in Singapore must adhere to the Tripartite Guidelines on Fair Employment Practices (TGFEP) and the Fair Consideration Framework (FCF), ensuring that hiring processes are fair, merit-based, and non-discriminatory. This includes advertising jobs on the MyCareersFuture portal for a specified period before applying for an Employment Pass or S Pass for foreign candidates, for relevant positions.
Read more: Tripartite Guidelines on Fair Employment Practices (TGFEP) | TAFEP (tal.sg)
Step 5: Set Up Financial and Operational Systems
Establishing robust financial and operational systems is an indispensable part of the framework for how to open a restaurant in Singapore. For financial management, implementing a reliable accounting system from the outset is crucial. Many SMEs in Singapore adopt cloud-based platforms such as Xero or QuickBooks for bookkeeping, invoicing, payroll and reporting; consult local user reviews or industry surveys for comparative adoption rates.
If your restaurant's annual taxable turnover is expected to exceed S$1 million, you must register for Goods and Services Tax (GST) with the Inland Revenue Authority of Singapore (IRAS). Even if not mandatory, voluntary GST registration can be considered. Proper record-keeping for GST purposes, including issuing tax invoices and filing accurate GST returns, is essential to comply with IRAS regulations.
Effective budgeting is vital for financial health. Develop a detailed budget covering startup costs, projected revenue, cost of goods sold (COGS), labour costs, rent, utilities, marketing expenses, and other overheads. Spreadsheet software like Microsoft Excel or Google Sheets can be used for budgeting, or you can explore dedicated budgeting applications that integrate with your accounting software. A well-chosen Point of Sale (POS) system is the operational heart of a restaurant.
Finally, developing Standard Operating Procedures (SOPs) for all key F&B operations—from kitchen workflows and recipe standardisation to service sequences and opening/closing checklists—ensures consistency, quality, and efficiency.
Eager to turn your culinary dream into reality in Singapore's vibrant food scene?
This guide has provided a comprehensive roadmap for starting your restaurant. From navigating legal requirements to implementing efficient operational systems, you've gained valuable insights.
Don't leave your technological needs to chance; a reliable POS system like Eats365 can streamline your operations and provide valuable data for informed decision-making. Contact Eats365 today to explore how our tailored solutions can empower your restaurant to thrive.
FAQ about Opening a Restaurant in Singapore
Why is ACRA registration vital for opening a restaurant in Singapore?
ACRA registration legally establishes your restaurant, offering liability protection (especially for Pte Ltd) and lending credibility to your venture when dealing with suppliers, landlords, and financial institutions.
How does location impact opening a restaurant in Singapore?
Location is pivotal, directly impacting visibility, accessibility, and profitability. Align your site with your target market and verify URA/HDB approval for F&B use or if a Change of Use application is needed.
What core licenses are needed when opening a restaurant in Singapore?
The primary license is the Food Shop Licence from SFA. A Liquor Licence from SPF is mandatory for selling alcohol. Other potential permits include Halal certification, Public Entertainment Licence, and GST registration.
What staff training is essential for opening a restaurant in Singapore?
Staff handling food must complete the WSQ Food Safety Course Level 1. Your restaurant must also appoint at least one certified Food Hygiene Officer (FHO) who has completed WSQ Food Safety Course Level 3.
What ACRA pitfalls impact opening a restaurant in Singapore?
Common pitfalls include choosing an inappropriate business structure, proposed name rejection, or incomplete/inaccurate information leading to delays. Pte Ltds must appoint a qualified resident company secretary within six months.
