How to start a home-based business in Singapore

Published Friday 6 November 2026

Table of contents

• What is a home-based business in Singapore?
• Home-based business rules in Singapore
• Benefits of starting a home business
• Home business ideas popular in Singapore
• How to start a home business in Singapore: 8 steps
• Singapore grants and funding for home businesses
• Marketing your home business
• Overcoming common barriers to starting a home business
• Simplify your home business finances with Xero
• FAQs on starting a home business in Singapore

Key takeaways

• Most home-based businesses in Singapore can operate under the Home-Based Business Scheme (HBBS) without approval from HDB or URA, though some activities still need a licence from the relevant agency, making it one of the simplest ways to start.
• Registering your business with the Accounting and Corporate Regulatory Authority (ACRA) through the BizFile+ portal costs as little as S$115 for a sole proprietorship.
• Self-employed Singapore Citizens and PRs with net trade income above S$6,000 a year must contribute to MediSave, and goods and services tax (GST) registration becomes compulsory once annual taxable turnover exceeds S$1 million.
• The Enterprise Development Grant (EDG) and Productivity Solutions Grant (PSG) ceased on 29 September 2026, with new applications going to EDGE from 30 September 2026. The EDGE Grant from Enterprise Singapore offers activity-based support up to an S$100,000 annual cap.

What is a home-based business in Singapore?

A home-based business is any business where your home is the principal place of work. Many new businesses start from home, and Singapore makes it relatively straightforward to launch one.

In Singapore, home-based businesses are governed by two schemes. The Housing & Development Board (HDB) administers them for HDB flats, while the Urban Redevelopment Authority (URA) administers them for private homes.

The Home-Based Business Scheme (HBBS) covers small-scale activities such as baking, tutoring, freelance design, and online retail. You don't need any approval from HDB or URA to operate under this scheme. However, there are restrictions: you can't put up signage, you can't employ non-residents at home, and your business should not cause disturbance to your neighbours.

The Home Office Scheme (HOS) is for knowledge-based, administrative work run from home, including using your home as your registered business address. This requires a one-time application fee of S$20. You can employ up to two non-resident workers under this scheme, and clients or customers can't visit your home. HDB flat owners register with HDB, while private property owners register with URA.

Certain activities aren't permitted under either scheme. These include large-scale manufacturing, activities that generate excessive noise or traffic, and any work that requires heavy machinery or creates fire hazards.

Home-based business rules in Singapore

The rules you follow depend on your scheme and on whether you live in an HDB flat or a private home. Checking them before you start trading keeps your business compliant from day one.

Under the HDB Home-Based Business Scheme, you can run a small-scale business from your flat with no non-resident employees. Your flat must stay mainly residential, and if your business disturbs neighbours, you'll need to stop or move to commercial premises.

The GoBusiness scheme checker also sets out who can run a business under the Home-Based Business Scheme. Before you start, make sure these conditions apply to you:

• The person running the business is an owner, registered occupant or tenant with the owner's consent who lives in the home
• The business has no domestic workers helping with it
• The owner of the business doesn't hold a Work Permit
• The business is registered with ACRA, unless you trade only under your full legal name

To use your home as an office, owners, tenants and authorised occupants of private homes register with URA under the Home Office Scheme, while HDB residents register with HDB. Once registered, you'll need to meet these conditions:

• Keep the work to administrative business functions
• Limit non-resident staff to two employees at most
• Keep the property a place of residence at all times
• Install a fire extinguisher and smoke detector, as Fire Safety and Shelter Department (FSSD) requirements make both mandatory
• Check that your business isn't on URA's list of non-permitted businesses
• Meet clients away from home, since the scheme doesn't allow physical client meetings at your residence

Benefits of starting a home business

Starting a business from home comes with several practical advantages, especially in a well-connected city like Singapore.

Lower overhead costs. Without rent for a commercial space, your startup costs drop significantly. You can channel those savings into growing your business instead.

Flexibility and work-life balance. You set your own hours and can structure your day around personal commitments. This is especially valuable if you're starting out as a side hustle alongside full-time employment.

Access to digital markets. Singapore's strong digital infrastructure, high internet penetration, and thriving e-commerce platforms like Shopee and Carousell mean you can reach customers locally and regionally from your living room. If you're considering starting an online business, the barrier to entry is lower than ever.

Lower risk to test ideas. A home-based setup lets you validate your business concept before committing to a lease or hiring staff. You can scale up when you're ready.

Home business ideas popular in Singapore

If you're exploring what to do, here are some home business ideas that work well in Singapore's market.

• E-commerce and reselling. Sell products through Shopee, Carousell, Lazada, or your own online store. Dropshipping is also a popular low-inventory option.
• Home baking and food preparation. Cakes, cookies, and pastries are in strong demand. Home-based food businesses currently don't need a Singapore Food Agency (SFA) licence, but they must follow food safety rules.
• Tutoring and education. Private tuition is a well-established market in Singapore, and online tutoring expands your reach beyond your neighbourhood.
• Freelance writing and content creation. Businesses across the region need copywriters, content marketers, and social media content creators.
• Graphic design and web development. Creative and technical skills are in high demand, and the work is entirely digital.
• Consulting. If you have deep expertise in a particular field, consulting lets you turn that experience into a service business with minimal overhead.
• Bookkeeping and accounting services. Small businesses always need help managing their finances, and cloud tools make remote bookkeeping straightforward.
• Social media management. Many small businesses in Singapore need help building their online presence but can't afford a full-time hire.
• Virtual assistance. Administrative support, scheduling, email management, and data entry are all tasks you can handle remotely for multiple clients.

How to start a home business in Singapore: 8 steps

Once you have settled on an idea, the next step is turning it into a real business. Here's a practical, step-by-step process to get you up and running.

1. Develop your business idea

Start by choosing an idea that matches your skills and experience. Do you have qualifications, a special talent, or years of industry knowledge you can put to work? A good home business idea sits at the intersection of what you're good at, what you enjoy, and what people will pay for.

If you work in technology, you're well placed for home-based work. Web design, app development and other digital services are popular choices for home-based work.

Test whether your idea is viable by researching the market and your potential competition. Not every passion can become a profitable business, so make sure there's genuine demand before you invest time and money. For more inspiration, explore startup business ideas.

2. Check your eligibility and understand Singapore's rules

Before you go any further, confirm that your business activity is permitted under the HBBS or HOS. Most small-scale home businesses fall under the HBBS and don't require any approval. If you plan to use your home as a registered office address, you'll need to apply under the HOS.

If you're starting a food business, note that the SFA doesn't require a licence for home-based food businesses that sell directly to consumers. However, you can't sell to SFA-licensed food establishments such as cafes, hawker stalls or restaurants, and catering isn't allowed.

For fire safety, both the HBBS and HOS require a suitable fire extinguisher (8A/34B rated) and a smoke detector in the area where you work.

3. Write a business plan

A business plan doesn't need to be a lengthy document. Start with a simple one-page plan that covers your product or service, your target market, how you'll reach customers, and how purchases will turn into profit.

Keeping it short forces you to focus on what matters most. A clear plan also helps if you need to apply for grants or financing later. Download a free one-page business plan template to get started.

4. Create a financial plan

Your financial plan maps out how your business will make money. Most home businesses aren't profitable straight away, so budget for a lean beginning.

Budgeting. Estimate your costs and expected income to understand when you might break even. This also shows whether you need outside funding. Use a cash flow forecast template to map out expected costs against your reserves. Learn about small business budgeting.

Pricing. Strike a balance between what your customers will pay and what keeps your business sustainable. Explore common pricing strategies.

Financing. Consider how you'll fund your startup costs. In Singapore, government grants can help: Enterprise Singapore's EDGE Grant and Start-up SG Founder are both worth exploring. EDGE replaced EDG, Market Readiness Assistance (MRA) and PSG for new grant applications from 30 September 2026. More detail on each is covered in the grants section below.

5. Choose a name and business structure

Your business name should be memorable and give a clear sense of what you do. Before you commit, check that the name is available through a search on ACRA's BizFile+ portal and the global brand database.

There are four ways to formalise your business name:

• Entity name. Registering your business with ACRA protects your name at the national level.
• Trademark. This protects your business name, goods, and services from being used by others.
• Trading name. A trade name lets you operate your business under a name that differs from your registered entity name.
• Domain name. Securing a matching web address protects your online identity.

You'll also need to choose a business structure. In Singapore, ACRA recognises five main structures:

• Sole proprietorship. The simplest option; you have full control but also full personal liability.
• Partnership. Two or more individuals share ownership and personal liability.
• Limited Partnership (LP). Has at least one general partner with unlimited liability and one limited partner whose liability is capped at their investment.
• Limited Liability Partnership (LLP). Partners have limited personal liability; commonly used by professionals such as lawyers and accountants.
• Private Limited Company (Pte Ltd). A separate legal entity where shareholders' liability is limited to their shareholding.

If you're unsure which structure suits your situation, consult with an accountant. Learn more about types of business structure.

6. Register your business with ACRA

Most businesses operating in Singapore must be registered with ACRA, unless you trade only under your full legal name. You can do this online through the BizFile+ portal.

For a sole proprietorship or partnership, the registration fee is S$115 for one year. For a Private Limited Company (Pte Ltd), the incorporation fee is S$300, plus a S$15 name application fee (S$315 in total).

Once registered, you'll receive a Unique Entity Number (UEN), which identifies your business for all government transactions, tax filings, and regulatory matters. Read more about registering a business.

7. Set up your home office

Designate a specific area or room as your workspace. A dedicated space helps you stay focused and makes it easier to separate work from home life.

Invest in suitable furniture, tools, and technology. You may not be able to afford everything at once, so prioritise the essentials and add items as your business grows. If your business involves inventory, make sure you have adequate storage that doesn't encroach on shared living areas.

For fire safety compliance, keep a rated fire extinguisher (8A/34B) and a working smoke detector in your home office. These are requirements under both the HBBS and HOS.

8. Set up accounting and understand your tax obligations

Getting your finances organised from the start saves you significant time and stress later. Open a dedicated business bank account to keep personal and business transactions separate. This is essential for accurate bookkeeping and tax filing.

Record all business income and expenses as they happen. Cloud accounting software like Xero can automate much of this, connecting to your bank account to categorise transactions and giving you a clear view of your cash flow at any time.

In Singapore, self-employed individuals are taxed on their net trade income. Here are the key obligations to be aware of:

• CPF and MediSave. If you're a Singapore Citizen or PR and your net trade income exceeds S$6,000 per year, you're required by law to contribute to MediSave.
• Goods and Services Tax (GST).GST registration is compulsory once your annual taxable turnover exceeds S$1 million. The current GST rate is 9%.
• Record keeping. IRAS requires you to keep business records for at least five years.
• Home expense deductions. You may be able to claim a portion of home utilities and rent as business expenses. Keep detailed records to support your claims.

Get an accountant on board as early as you can. They will help you claim every deduction you're entitled to, estimate your tax obligations, and submit accurate returns so there are no surprises. Learn more about small business accounting.

Singapore grants and funding for home businesses

Singapore offers several government grants designed to support new and growing businesses. If you're just starting out, these can significantly reduce your upfront costs.

• EDGE Grant.Enterprise Singapore's EDGE Grant replaced EDG, MRA and PSG for new applications from 30 September 2026. Support varies by activity: up to 70% of qualifying costs for SMEs, or up to 50% for non-SMEs, depending on the activity, with an S$100,000 annual cap paid as a reimbursement.
• Start-up SG Founder. Aimed at first-time entrepreneurs with innovative business ideas. Offers a grant of up to S$50,000, with you putting in co-matching capital, plus mentorship from an Accredited Mentor Partner. It's open to first-time founders of a newly registered private limited company.
• SkillsFuture credits. Singapore Citizens aged 25 and above can use SkillsFuture Credit for approved courses, covering everything from digital marketing to financial management.

If you already have an EDG, MRA or PSG submission or project underway, Enterprise Singapore will still process your existing application.

Check eligibility requirements on the Enterprise Singapore and SkillsFuture websites, as criteria and funding levels may change.

Marketing your home business

A solid marketing plan helps you find customers and grow your revenue. You don't need a big budget to get started, but you do need a clear strategy.

Analyse the market. Start with a SWOT analysis (strengths, weaknesses, opportunities, threats) to understand where your business fits and where you can stand out.

Set clear goals. Make your marketing goals SMART: specific, measurable, achievable, relevant, and time-bound. This keeps your efforts focused and your progress trackable.

Choose the right channels. In Singapore, platforms like Instagram, TikTok, Carousell, and Shopee are effective for reaching local customers. If you offer services, set up a Google Business Profile to appear in local search results.

Set a marketing budget. Knowing how much you can afford to spend is critical. Track what you spend and what business it brings in, then adjust. When something isn't delivering results, shift your resources to what works.

Keep evolving. Review your marketing efforts regularly and update your approach as you learn what resonates with your audience.

Overcoming common barriers to starting a home business

Every new business owner faces challenges. Knowing what to expect makes it easier to push through when things get tough.

Financial constraints. Make sure you can afford to start your business while covering your regular expenses. Singapore's government grants can ease the financial pressure, and starting lean from home already keeps your overhead low.

Navigating regulations. The HBBS and HOS frameworks are straightforward once you understand which scheme applies to you. If you're unsure, the GoBusiness portal provides a step-by-step guide to help you check your eligibility.

Interruptions from family and housemates. Set clear boundaries around your working hours and workspace. Let the people you live with know when you're not available. Equally, avoid the trap of working around the clock just because you live in your office.

Feeling isolated. Working alone can be lonely. Consider joining professional groups, attending Enterprise Singapore networking events, or visiting your nearest SME Centre for advice and community connections. Working from a co-working space or cafe occasionally can also help.

Simplify your home business finances with Xero

Getting your finances right from day one sets your home business up for long-term success. The sooner you have a clear picture of your income, expenses, and cash flow, the more confident you'll be making decisions about growth, pricing, and hiring.

Xero gives you the tools to manage your finances without the manual admin. Send invoices, track expenses, and reconcile bank transactions automatically. You get a clear view of your cash flow in real time, all from one place.

It's cloud-based, so you can access your finances from your phone or laptop, wherever you're working from. Choose a plan and get one month free to start managing your home business finances.

FAQs on starting a home business in Singapore

Here are some frequently asked questions about starting a home business in Singapore.

What is the Home-Based Business Scheme (HBBS)?

The HBBS, administered by HDB for flats and URA for private homes, lets Singapore residents run small-scale businesses from home without approval from either agency, though some activities still need a licence from the relevant agency. It covers activities like online retail, baking, tutoring, and freelance services, provided the business doesn't cause disturbance to neighbours or require signage.

What is the difference between HBBS and the Home Office Scheme?

The HBBS is for small-scale business activities and requires no approval. The Home Office Scheme (HOS) is for administrative, knowledge-based work, including using your home as your registered business address. The HOS requires a S$20 fee and allows up to two non-resident employees to work from your home.

How much does it cost to register a business in Singapore?

Registering a sole proprietorship or partnership with ACRA costs S$115 through the BizFile+ portal. Incorporating a Private Limited Company (Pte Ltd) costs S$315 in total, including the name application fee. Additional costs may apply for professional services such as company secretary or registered address provision.

Do I need to pay CPF if I am self-employed?

Self-employed individuals in Singapore aren't required to make CPF contributions to the Ordinary and Special Accounts. However, if you're a Singapore Citizen or PR and your net trade income exceeds S$6,000 per year, you must contribute to MediSave. The contribution amount depends on your age and income level.

What grants are available for Singapore home businesses?

Key options include the EDGE Grant, which replaced EDG, MRA and PSG for new applications from 30 September 2026 and offers activity-based support up to an S$100,000 annual cap. Start-up SG Founder offers a grant of up to S$50,000 with founder co-matching capital, and Singapore Citizens aged 25 and above can use SkillsFuture Credit for approved training courses.

What are the pros and cons of running a home business?

The main advantages include lower overhead costs, flexible working hours, and the ability to test your business idea with minimal financial risk. Challenges include potential isolation, difficulty separating work from personal life, limited space for inventory or equipment, and the discipline required to stay productive without a structured office environment.