How To Open A Restaurant in Singapore: All You Need to Know

Singapore is a food lover’s paradise, known as the Food Capital of Asia for its rich and diverse culinary scene. From hawker centers serving affordable local favorites to fine dining restaurants offering gourmet experiences, the country is a melting pot of global flavors. Whether it’s Indian curries, Malay rendang, Chinese dim sum, or Italian pasta, Singapore’s streets are filled with delicious food from every culture. Locals and tourists alike are always looking for new dining experiences, making the restaurant industry one of the most exciting and competitive in the region.

If you’re considering opening a restaurant in Singapore, the opportunities are huge—but so is the competition. The city’s business-friendly policies, efficient infrastructure, and strong demand for quality food make it an attractive place for restaurant owners. Naturally, opening a restaurant in such a fulfilling industry space is tempting. However, success requires careful planning, understanding customer preferences, and following local regulations. 

How to Open a Restaurant in Singapore: A Detailed Guide

We have outlined all the technicalities of opening a restaurant in Singapore.

1. Planning The Restaurant Business

Now that you have decided to open your restaurant, it is time to understand that it is no joke to run one. The market is prosperous and competitive, the rentals are high, and survival is only of the fittest. So, the first step to opening a restaurant in Singapore will be to plan it for success. What will be your USP, who is your target audience, what type of menu will you serve, which market do you want to tap, and how much can you invest- pen it all down as a business plan. This will give you a solid foundation to build your restaurant and give your thoughts and investments a more precise direction. 

2. Raising Capital For The Restaurant

The next step in opening a restaurant in Singapore is planning where you will get the money. Until and unless you have deep pockets, entering the Singapore restaurant industry can be taxing. Food costs, rent, and labor costs are typically high, and due to the high cost of living, depending on the size and format of your restaurant, these things can cost you anything between 50,000 to 600,000 Singapore dollars. In this scenario, the most common rookie mistake is compromising on the location, thinking that the level of food can make up for it. This is a fatal mistake; we do not suggest compromising the restaurant’s location just to save cash.

Instead, you must look for alternative methods of investment. You can go for angel donors, look for investors for your business, or enter a partnership where your partner can bring the money or raise capital from the bank. Apart from that, the government is running a number of incentive-based schemes to promote entrepreneurs in the F&B industry. You can review them and check if you qualify for the benefits. 

3. Incorporating The Restaurant As A Company

You need to incorporate a company that will further own the restaurant. This may seem unnecessary, but truthfully, it is one of the most essential steps in the long run. From an accounting point of view, the owner and the company are seen as separate entities. To incorporate your company, you need to register with the Accounting and Corporate Regulatory Authority (ACRA) via their BizFile+ portal. The process involves several key requirements:

1. Company Name: Choose a unique name and get it approved by ACRA.
2. Directors: Appoint at least one director who is a Singapore resident (citizen, permanent resident, or individual with a valid Employment Pass).
3. Company Secretary: Appoint a qualified company secretary within six months of incorporation.
4. Paid-up Capital: The minimum paid-up capital is SGD 1, which can be increased as needed.
5. Registered Address: Provide a local Singapore address as the registered office.

The government fee for incorporating a company is approximately SGD 300. If you’re a Singaporean citizen or permanent resident with a Singpass, you can complete the incorporation process online through the BizFile+ portal. If you don’t have a Singpass, apply for one before proceeding.

For foreign entrepreneurs, the process includes additional steps. You must apply for an EntrePass through the Ministry of Manpower (MOM). The EntrePass is designed for foreign entrepreneurs who wish to start and operate a business in Singapore. To be eligible, you must meet specific criteria, such as having an innovative business idea and fulfilling the requirements outlined by MOM. Once you have obtained the EntrePass, you can apply for a Singpass, allowing you to incorporate your company through the BizFile+ portal.

4. Deciding The Location

Choosing the right location for your restaurant is crucial. As you develop your restaurant business plan, you should identify your target audience, unique selling point (USP), and competition. Your location should be accessible to your ideal customers, provide an opportunity for your USP to shine, and have manageable competition. However, if you find yourself as the only restaurant of your kind in a specific area, take the time to research why. A lack of competition could mean an untapped opportunity—or it could signal that the area isn’t suitable for your business.

On the legal side, before committing to a lease, make sure you have all the necessary approvals to operate a restaurant in that location. Before signing a lease, verify that the property has the necessary approvals from relevant authorities, such as the Urban Redevelopment Authority (URA) or the Housing & Development Board (HDB), depending on the property’s zoning and usage. 

5. Code Of Practice Of Environmental Health

To establish a restaurant in Singapore, adherence to the Code of Practice on Environmental Health (COPEH) is essential. The COPEH provides comprehensive guidelines to address environmental health concerns in building designs, particularly for food retail outlets. The latest edition, COPEH 2024, introduces updated requirements effective from January 1, 2025, applicable to new development applications submitted to the Urban Redevelopment Authority (URA) on or after this date. To know more, read here. 

Key Considerations for Compliance:

1. Design and Layout: Ensure your restaurant’s design facilitates efficient workflow and maintains high hygiene standards. This includes proper placement of kitchen equipment, adequate ventilation systems, and appropriate waste disposal mechanisms.
2. Sanitary Facilities: Provide sufficient and well-maintained hygienic facilities for staff and patrons, adhering to the specifications outlined in the COPEH.
3. Waste Management: Implement an adequate refuse storage and collection system to prevent pest infestations and maintain cleanliness.

6. Review Property Owner’s Fire Certificate

This is the most overlooked step when setting up a restaurant business. You must check the owner’s fire certificate for the premises. Restaurant kitchens run the maximum risk of starting a fire, which makes this one of the most important documents. The property owner should have a current fire certificate from the Singapore Civil Defence Force, which will certify that the property meets basic fire safety standards. The Fire Safety Certificate is renewed annually by the SCDF Inspections. Failure to have the certificate is an offense for which the owner of a premise can be persecuted.

The owner may not have the certificate if the premises have not been used as a restaurant before. In this case, insist that the owner gets this certificate before you sign the tenancy agreement for your restaurant. If the owner leaves getting the certificate to you, factor in the costs and negotiate for it in the rent. Obtaining a Fire Certificate is a lengthy process that may take months. You can get a Fire Permit or Fire Safety Certificate in the interim.       

7. Licenses Required To Open A Restaurant In Singapore

Now that your premises are set, the next step to opening a restaurant in Singapore is to get all the required licenses. Here are the details of all the licenses you may require and click to know more: 

(i) Food Shop License

Opening a restaurant in Singapore requires obtaining specific licenses and adhering to regulatory requirements to ensure food safety and public health. The primary license you’ll need is the Food Shop Licence, issued by the Singapore Food Agency (SFA). This license is mandatory for establishments such as restaurants, cafes, and takeaway kiosks. It costs around $195 and is valid for a year.

(ii) Basic Food Hygiene Course

You must sign up for this to get certified for all food handlers before you open a restaurant in Singapore. 

(iii) Liquor License

You need to apply for a Liquor License only if you plan to sell alcohol on your restaurant premises. There are several classes of the license. To get a liquor license, you will have to go to the Singapore Police Force (SPF). 

(iv) Halal Certification

This is an optional license, which you need to require only if you plan on serving halal meat. In order to get Halal certification, you need to apply to the Majlis Ugama Islam Singapura (MUIS).  The process for Halal Certification is long and may take over months. The requirements for the license include but are not limited to only serving dishes or using ingredients that are halal-certified, hiring at least two Muslim staff members who must obtain halal training certificates, giving at least one of the supervisory positions and giving MUIS the final authority over these hires.  

(v) GST Registration

When you open a restaurant in Singapore, you must register your food business for a 7% GST once it starts earning annual revenue of S$1 Million. With the new budget, the GST has been hiked to 9%, but the law has not been practically enforced till now. You need to register with IRAS to pay Goods and Services Tax.

8. Hiring Staff For Your Restaurant

Hiring staff is one of the biggest challenges that restaurateurs in Singapore’s food industry face today. Local Singaporeans are not keen on getting restaurant jobs, and because of government quotas, many foreign workers and talent cannot be hired indiscriminately. This makes hiring the correct employee a herculean job.

All food handlers in Singapore must complete the Workforce Skills Qualifications (WSQ) Food Safety Course Level 1. This certification ensures that staff possess the necessary knowledge of food safety and hygiene practices. The certification is valid for five years, after which refresher courses are mandatory to maintain compliance. 

Because of high labor costs, ensure you only hire the best talent. You may have to shell out above industry rates or even let managers have a share in profits to keep them around. The attrition rate is also not low, which makes retaining employees essential. Ensure that the person you hire is passionate about his/her work and is not in it just for the money. Given that radio mentions or ads in a local newspaper are costly and job portals mostly yield foreign candidates, you can go for headhunting from other establishments. Employees do not mind the shift for better pay and work environment. There are several procedures for opening a restaurant in Singapore. 

Employers must register for the Central Provident Fund (CPF) to manage employee contributions and with the Inland Revenue Authority of Singapore (IRAS) for income tax reporting. Recent policy changes, effective January 1, 2025, include an increase in the CPF Ordinary Wage ceiling to S$7,400, with plans to reach S$8,000 by 2026. Additionally, enhanced CPF contribution rates for senior workers have been implemented to bolster retirement savings.

9. Getting The Restaurant Equipment 

Once all the formalities needed to open a restaurant in Singapore are done, purchasing the restaurant equipment is next. It is always more practical to buy more prominent pieces of equipment like ovens, freezers, grillers, stoves, etc., first. For this, you can consider buying from standard F&B Companies or second-hand machinery. If you plan to buy your equipment second-hand, ensure it is in good working condition. Because of the number of restaurants closing within the first few years, almost as good as new equipment can be obtained at dirt-cheap prices.

Temple Street is the place for standard restaurant utensils. Sia Huat and Lau Choy Seng are two favorites of restaurateurs and chefs. Sia Huat positions itself as “Asia’s one-stop food service partner,” providing a diverse range of products suitable for commercial kitchens and professional chefs in the culinary world. Their offerings include professional cookware, kitchen tools, cutting instruments, and more.

10. Getting The Necessary Technology

Now that everything has been set, the final and most important thing you will need before opening a restaurant in Singapore is good restaurant technology. A smart POS system is essential to streamline operations, track sales, monitor staff performance, and manage inventory efficiently.

A unified restaurant platform can give you real-time insights into your daily business, helping you optimize food costs, attract customers, and maximize profitability. Our all-in-one restaurant management solution ensures smooth operations, enhances customer experience, and gives you complete control over your restaurant.

Conclusion

Starting a restaurant in Singapore may seem overwhelming due to all the necessary documents and various formalities, but the process is manageable with the right approach. By carefully following the required steps and ensuring compliance with regulations, you can set up your restaurant. Just follow these procedures to open a restaurant in Singapore and watch your dream of owning a restaurant become a reality!