Starting a Home-Based Business in Singapore: HDB, URA & ACRA Requirements for Citizens (2026)
Last Updated: April 2026 | Reading time: ~8 minutes
Most home-based businesses in Singapore do not require a special license from HDB or URA if they are small-scale and non-disruptive. You still need to register your business name with ACRA (fees: S$15 name application + S$100 for sole proprietorship). Home bakers generally do not need an SFA food retail license, but must follow food safety rules. For administrative home offices, you may register under the Home Office Scheme and hire up to two employees.
The idea of starting a business from your own home is appealing — no expensive office rent, no long commutes. But before you begin, you need to know what's actually allowed. This guide walks Singapore citizens through exactly what you need to know about starting a home-based business in 2026: HDB/URA schemes, ACRA registration, and requirements for popular activities like baking or tuition.
Table of Contents
Understanding the Two Main Schemes: HBB and HO
Singapore has two different schemes for running a business from home. Which one applies to you depends entirely on the type of work you plan to do.
The Home-Based Business Scheme (HBB) is for small-scale, hands-on activities. Think of things like baking and selling cakes from your kitchen, offering hairdressing or nail services to neighbours, or making crafts to sell online. These are businesses that involve physical activity, stock, or direct service at your home.
For the HBB scheme, you generally do not need to seek prior approval from HDB or URA. You can carry out these activities as long as they remain small-scale and do not cause any nuisance to your neighbours — no strong smells, noise, or heavy foot traffic.
The Home Office Scheme (HO) is for administrative or office-type work. If you run a consultancy, provide accounting or IT services, do graphic design, or run an e-commerce store where all your stock is stored elsewhere, this is likely your scheme. You are using your home as your office to handle the paperwork and communications of your business.
Under the HO scheme, you can register your residential property with HDB (for HDB flats) or URA (for private property). You are allowed to hire up to two non-resident employees to work from your home. However, all activities must be strictly administrative in nature.
Do You Even Need to Register a Home Business?
You need to register your business with ACRA if you are operating under a business name, selling products, or providing services with the intention of making a profit. If you are casually selling a few homemade cookies to friends once in a while, you might not need to register. But once you start using a brand name, advertising online, or regularly selling to people you do not know, registration is required.
For most small-scale home-based businesses, you do not need to get any special approval from HDB. The HDB Home-Based Business Scheme allows you to operate certain small-scale activities from your flat without applying for a permit first. As long as your business stays small and does not disrupt your neighbours, you are generally in the clear.
If you live in private property — a condo or landed house — the rules are similar. You can run a small-scale business under the URA Home Office Scheme without seeking prior approval for most administrative activities.
One question many home-based founders ask at this stage is whether to register as a sole proprietorship or incorporate a private limited company. If you are not sure which structure suits your situation, our guide on whether to incorporate a company in Singapore walks through the key decision points before you register.
The Step-by-Step Guide to Registering Your Home Business
Once you are confident your business idea fits within the allowed activities, the registration process is straightforward.
Step 1: Check if your business activity is allowed.
Confirm that what you want to do is permitted under the HBB or HO scheme. Most common small businesses are fine. However, you cannot operate a medical clinic, a spa, a tuition centre with many students coming and going, or any activity that creates significant noise or pollution from home.
Step 2: Register your business with ACRA.
Go to the ACRA BizFile+ portal and register your business using your Singpass. You will need to choose a business name, pay the registration fee (S$15 for name application + S$100 for sole proprietorship registration), and provide your home address as your business address. Within a few hours or days, you will receive your Business Profile.
If you are a Singapore citizen or PR considering a private limited company instead of a sole proprietorship, the process is different. See our complete guide to incorporating a company as a Singapore citizen or PR for the full step-by-step breakdown, costs, and post-incorporation obligations.
Step 3: Inform HDB or URA (if needed).
For most home-based businesses, you do not need to separately inform HDB or URA. However, if your business falls under the Home Office Scheme, you may need to register your home address with the relevant authority. For HDB flats, this is done online through the HDB Home Office Scheme page. For private property, you register with URA. This step is free and quick.
Step 4: Handle any additional licences.
Some home businesses need extra licences from other government agencies. Home bakers do not need an SFA food shop licence, but must follow food safety rules. If you are providing tuition, you cannot turn your home into a full-fledged tuition centre with many students coming daily. Always check the specific requirements for your industry on GoBusiness.
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What About Food Businesses? The Special Case of Home Bakers
Home-based food businesses — baking and selling cakes, cookies, or other treats — are incredibly popular in Singapore. The Singapore Food Agency (SFA) has made it easier for small home bakers.
As of 2026, home-based food businesses generally do not require an SFA food retail licence because they are considered small-scale and low-risk. This is great news for aspiring home bakers.
However, there are important conditions. You cannot provide catering services, and you should not sell your food to other retail businesses like cafes or restaurants. Your food must be sold directly to individual consumers. You must still comply with basic food safety laws — a clean kitchen, properly stored ingredients, and no risk to consumers.
Even without a licence, it is a good idea to follow good food hygiene practices. Some home bakers take the WSQ Food Safety Course Level 1 to build confidence and credibility with customers.
As your home baking business grows and you start earning consistent income, proper bookkeeping becomes essential. Our guide on affordable accounting services for Singapore SMEs explains how to keep your records clean from day one without overspending on compliance.
Fire Safety and Other Practical Considerations
Even for a small home business, you have a responsibility to keep your home safe. The Singapore Civil Defence Force (SCDF) has general fire safety regulations that all businesses must follow. For a home-based business, this means having a working fire extinguisher, keeping escape routes clear, and not storing large quantities of flammable materials at home.
You should also think about your neighbours. No excessive noise, no strong odours drifting into neighbouring flats, and no heavy foot traffic from customers or delivery vehicles. If your neighbours complain to HDB or URA, you could be asked to stop your business activities or move to a commercial space.
If you are running an online business, consider whether you need additional insurance. Your standard home insurance policy might not cover business-related activities, especially if customers visit your home or you store valuable stock. A small business insurance policy can protect you if something goes wrong.
As your business grows, understanding your Singapore accounting requirements becomes critical for tax compliance and financial planning.
When to Upgrade from Home Business to Private Limited Company
Starting small is smart. But when your home-based business starts gaining traction, you may want to consider incorporating a private limited company. Here are key signals it's time to upgrade:
- ✅ Annual revenue exceeds S$100,000 — you can now claim the 75% tax exemption on first S$100K income for new companies (see full tax incentives guide)
- ✅ You want liability protection — a Pte Ltd separates your personal assets from business risks
- ✅ You plan to hire employees or seek investors — investors prefer the credibility of a Pte Ltd structure
- ✅ You want to build business credit or apply for grants — many Singapore grants require Pte Ltd status
- ✅ You're ready to scale beyond home-based limits — HBB/HO schemes have activity and employee restrictions
Next step: See how Singapore citizens and PRs can incorporate a Pte Ltd →
Home-Based Business vs. Private Limited Company: Which Is Right for You?
Choosing between staying as a home-based sole proprietorship or incorporating a Pte Ltd depends on your goals. This table breaks down the key differences:
| Feature | Home-Based (Sole Prop) | Private Limited Company |
|---|---|---|
| Setup Cost | S$115 (ACRA fees) | S$315 + professional fees |
| Liability | Personal (unlimited) | Limited to company assets |
| Tax Benefits | Personal tax rates | 75% exemption on first S$100K + 17% corporate rate |
| Credibility | Lower (sole prop) | Higher (Pte Ltd) |
| Compliance | Simple (annual declaration) | More complex (annual returns, AGM, filings) |
| Best For | Testing ideas, side income, low-risk activities | Scaling, hiring, investors, grant applications |
Still deciding? Our best Singapore business structure guide for startups helps you choose the right path for your goals.
Real Talk: Can You Really Run a Business from Your HDB Flat?
Yes, absolutely. Many successful Singaporean entrepreneurs started from their HDB flats. One home baker started selling cakes online from her kitchen and now runs her own commercial bakery. Another ran a digital marketing consultancy from his living room for two years before moving to a proper office.
The key is to start small, follow the rules, and be a good neighbour. Do not take on more than you can handle, and do not create problems for the people living around you. Running a business from your HDB flat is a fantastic way to test your idea, build a customer base, and save on rent.
Once your business grows and you are ready to formalise your structure, understanding Singapore's tax benefits and incentives for new companies can help you plan your next move — especially if you are considering incorporation.
Key Takeaways for Singapore Citizens Starting a Home Business in 2026
- Most home-based businesses do not need special approval from HDB or URA, as long as they are small-scale and non-disruptive.
- You must register your business with ACRA if you are operating under a business name or selling products and services regularly.
- Home-based food businesses like baking generally do not require an SFA food retail licence but must follow basic food safety rules.
- The Home Office Scheme allows you to hire up to two non-resident employees for administrative work.
- Always be considerate of your neighbours and avoid causing noise, smells, or heavy foot traffic.
- Consider getting basic business insurance and a fire extinguisher for safety.
- As your business grows, review your business structure and compliance obligations to ensure you are set up correctly for the long term.
- When revenue exceeds S$100K or you need liability protection, consider upgrading to a private limited company.
Ready to Incorporate as a Singapore Citizen or PR?
Starting small is smart. When you're ready to scale, our ACRA-Registered Filing Agents make incorporation seamless — with transparent pricing and ongoing compliance support.
Get Your Free Incorporation Quote Chat on WhatsAppFrequently Asked Questions (FAQ)
Do I need to inform HDB if I start a home-based business?
For most small-scale businesses under the Home-Based Business Scheme, no. You do not need to seek prior approval from HDB. However, if your business falls under the Home Office Scheme, you may need to register your address with HDB or URA.
Can I use my HDB address as my business address?
Yes. You can use your residential address as your business address when registering with ACRA. There is no requirement to have a separate commercial address for most small home-based businesses.
Do I need a licence to sell homemade food from home?
No. Home-based food businesses generally do not require an SFA food retail licence in 2026. However, you must comply with food safety laws and cannot provide catering services or sell to other retailers.
Can I hire employees to work from my home?
Under the Home Office Scheme, you can hire up to two non-resident employees. Under the Home-Based Business Scheme, only the residents living in the home can operate the business.
What happens if my neighbours complain about my home business?
If HDB or URA receives a complaint, they may investigate. If they find that your business is causing a nuisance, you may be asked to stop the business activities or move to a commercial space.
Do I need a fire extinguisher for my home business?
While not always mandatory for very small home businesses, it is highly recommended. The SCDF encourages all businesses to have basic fire safety measures in place.
Can I run a tuition centre from my HDB flat?
No. Tuition centres with many students coming and going are not allowed under the home-based schemes. You may provide one-to-one tuition occasionally, but you cannot operate a full-fledged tuition centre from a residential property.
How do I register my home business with ACRA?
You can register online via the ACRA BizFile+ portal using your Singpass. You will need to reserve a business name, pay the registration fees, and provide your residential address as your business address.
Should I start as a sole proprietorship or incorporate a company?
A sole proprietorship is simpler and cheaper to set up, but you carry personal liability. A private limited company offers liability protection and more credibility, but has higher compliance requirements. The right choice depends on your goals and growth plans.
Do I need an accountant for my home business?
Not immediately, but as your revenue grows, proper bookkeeping becomes essential for income tax filing and compliance with IRAS. Setting up clean records from day one saves significant time and cost later.