How to start a home-based business in Singapore

Published Friday 5 June 2026

Table of contents

• What is a home-based business 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
• 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 any licence or approval, making it one of the simplest ways to start.
• Registering your business with ACRA through the BizFile+ portal costs as little as S$115 for a sole proprietorship and typically takes one to two working days.
• Self-employed individuals earning above S$6,000 per year must contribute to MediSave, and GST registration becomes compulsory once annual taxable turnover exceeds S$1 million.
• Singapore offers several government grants for new businesses, including the Enterprise Development Grant (up to 50% of qualifying costs) and the Productivity Solutions Grant (up to 80%).

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 administered by the Urban Redevelopment Authority (URA).

The Home-Based Business Scheme (HBBS) covers small-scale activities such as baking, tutoring, freelance design, and online retail. You do not need any approval from HDB or URA to operate under this scheme. However, there are restrictions: you cannot put up signage, you cannot 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 where you want to use your home as a 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 visitor traffic must remain minimal. HDB flat owners register with HDB, while private property owners register with URA.

Certain activities are not 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.

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 are 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 are 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 are ready.

Home business ideas popular in Singapore

If you are 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. In Singapore, home-based food businesses selling directly to consumers do not require an SFA licence.
• 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 seamless.
• Social media management. Many small businesses in Singapore need help building their online presence but cannot 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 is 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 are good at, what you enjoy, and what people will pay for.

If you work in technology, you are well placed for home-based work. Roles in web design, app development, and other information industry fields are among the most commonly run from home.

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 is 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 do not require any approval. If you plan to use your home as a registered office address, you will need to apply under the HOS.

If you are starting a food business, note that the Singapore Food Agency (SFA) does not require a licence for home-based food businesses that sell directly to consumers. However, you cannot sell to licensed food retailers such as cafes, hawker stalls, or restaurants from your home.

For fire safety, all home-based businesses should have a suitable fire extinguisher (8A/34B rated) and a smoke detector installed in your workspace.

3. Write a business plan

A business plan does not need to be a lengthy document. Start with a simple one-page plan that covers your product or service, your target market, how you will 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 are not 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 will fund your startup costs. In Singapore, several government grants can help: the Enterprise Development Grant (EDG), Start-up SG Founder, and the Productivity Solutions Grant (PSG) are all worth exploring. 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 will 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 are unsure which structure suits your situation, consult with an accountant. Learn more about types of business structure.

6. Register your business with ACRA

All businesses operating in Singapore must be registered with the Accounting and Corporate Regulatory Authority (ACRA). You can do this online through the BizFile+ portal.

For a sole proprietorship or partnership, the registration fee is S$115. For a Private Limited Company (Pte Ltd), the incorporation fee is S$315. Registration typically takes one to two working days.

Once registered, you will 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 does not 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 your net trade income exceeds S$6,000 per year, you are 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, even after you stop operating.
• 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 are 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 are just starting out, these can significantly reduce your upfront costs.

• Enterprise Development Grant (EDG). Supports businesses looking to upgrade capabilities, innovate, or expand overseas. Covers up to 50% of qualifying project costs.
• Start-up SG Founder. Aimed at first-time entrepreneurs with innovative business ideas. Provides up to S$50,000 in co-matching funding alongside mentorship from approved partner organisations.
• Productivity Solutions Grant (PSG). Helps businesses adopt pre-approved digital solutions and equipment. Covers up to 80% of qualifying costs, making it an excellent option if you need accounting software, e-commerce tools, or digital marketing solutions.
• SkillsFuture credits. Self-employed individuals can use SkillsFuture credits to upskill through approved courses, covering everything from digital marketing to financial management.

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 do not 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 is not 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 are 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 are 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 will 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 is cloud-based, so you can access your finances from your phone or laptop, wherever you are working from. Get one month free.

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 is a scheme administered by URA that allows Singapore residents to run small-scale businesses from their homes without any approval from HDB or URA. It covers activities like online retail, baking, tutoring, and freelance services, provided the business does not 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 where you want to use your home as a registered business address. The HOS requires a S$20 application 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, and the process typically takes one to two working days through the BizFile+ portal. Incorporating a Private Limited Company (Pte Ltd) costs S$315. 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 are not required to make CPF contributions to the Ordinary and Special Accounts. However, if 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 grants include the Enterprise Development Grant (up to 50% of qualifying costs), Start-up SG Founder (up to S$50,000 in co-matching funding), and the Productivity Solutions Grant (up to 80% of qualifying digital solutions). Self-employed individuals can also use SkillsFuture credits 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.