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How to Start a Bakery in Singapore

Updated on Thursday 27th May 2021

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How-to-Start-a-Bakery-in-Singapore.jpgSingapore is one of the best states in Southeast Asia to start a business in the food industry. The numerous options combined with the budget established for such business can be combined in order to offer great expansion opportunities to foreign investors coming to Singapore.
 
Those who do not want to open restaurants can try and open other types of food-related businesses, such as bakeries. Below, our company formation agents in Singapore explain how to open a bakery in the city-state.
 

Types of bakery businesses that can be set up in Singapore

 
Bakeries are among the most prolific businesses in a country, which is also the case of Singapore, as people buy not only bread, but also other related products. At the moment, traditionally baked products are quite sought which makes such a venture very profitable.
 
There are various types of bakeries that can be set up in Singapore, among which:
 
  • -  small businesses that sell home-baked goods to a restricted clientele;
  • -  food trucks that sell all types of bakery products;
  • -  traditional shops that sell bread and biscuits;
  • -  bread and doughnut shops;
  • -  cake businesses that sell cakes and pies;
  • -  pastry shops;
  • -  cafes.
 
Entrepreneurs considering starting a bakery shop in Singapore must consider the location very well. Luckily, the city-state is full of crowded places where locals and tourists like to spend time, therefore such a business can register good profits.
 

What is the most suitable business form for setting up a bakery?

 
Bakeries can be created as small or medium-sized enterprises, but they can also be established as startups. The sole proprietorship and the limited liability company are both suitable legal vehicles that can be used for such a business depending on its size.
 
When created as a home-based company, the sole proprietorship or the partnership can be a good choice when set up by Singapore citizens. When created by foreigners, a residence permit is required in order to operate as a sole trader.
 
When opening a bakery like a street food business, the private limited liability company is a more suitable option considering the venture will be a larger one. The same entity can be used when setting up a startup in Singapore.
 
If you want to open a company in Singapore and are considering a bakery, you can rely on our local advisors for guidance in choosing a suitable legal entity. Moreover, we can help you register the selected business form.
 

Key elements to consider when opening a Singapore bakery

 
There are several aspects to take into account when deciding to open a Singapore bakery. Among these, the location and the suppliers of the ingredients are of key importance, especially when considering selling goods that rely on special recipes.
 
These elements can be included in the business plan which must also comprise a market research or study on the competition.
 
Starting a bakery is not complicated, however, you must consider a distinctive element that will help you stand out among competitors.
 
At last, meeting the legal requirements, among which the licensing conditions is very important when starting a business that sells and serves food products to the public.
 

Company registration and licensing for a bakery in Singapore

 
Foreign enterprisers who want to open bakery businesses in Singapore must follow the same regulations as when setting up any other type of company which sells food. In order to successfully start a bakery shop in Singapore, one must:
 
  • -  register a company with the Accounting and Corporate Regulatory Authority in Singapore;
  • -  apply for a tax identification number, for a GST number and register for social security;
  • -  finding a suitable location where the products can be cooked and sold;
  • -  applying for a food shop license with the Singapore National Environment Agency;
  • -  applying for other special licenses, such as import/export permits, if ingredients are imported.
For the Singapore company formation process of the bakery shop, foreign entrepreneurs can rely on our local specialists.
 

The food shop license for a Singapore bakery

 
After registering the selected business form, the food shop authorization is the next step. The license is issued by the National Environment Agency and it is based on the following documents:
 
  • - the owner’s identification papers;
  • - the company’s business profile or the Certificate of Incorporation;
  • - the scheme of the premises detailing the areas of the bakery;
  • - the rental contract if the Singapore property used as a location  is a rental;
  • - the approval obtained with the Housing Development Board, the Building and Construction Authority ,or the Urban Redevelopment Authority.
 
Also, depending on the size of the company and if it has employees, additional information on the employees is required. Apart from these, the owner must appoint a food hygiene officer. It should be noted that in the case of small bakery shops where the owner will prepare the goods, he or she must obtain the food hygiene certificate by completing a special training course.
 
The food shop license has a limited validity of one year and must be renewed.
 
Apart from the food shop license, a bakery can also apply for other business permits depending on what other activities or services it wants to provide. Among these, a liquor license if it intends to sell beverages like craft beer and a license for playing music on the premises.
 
Our company registration agents in Singapore can guide you on the licenses that you need when starting a bakery in the city-state.
 

Why start a bakery in Singapore?

 
Among the most important reasons for which investors decide to open bakeries in Singapore are the fact that this type of businesses can be set up as small companies and the fact that the government supports small scale business which can operate from home.
 

The Singapore home-based small business program

 
The home-based small business program is suitable for starting a bakery in Singapore because:
 
  • -  there is no need to apply for any special license;
  • -  there is no need to hire employees;
  • -  it is cheaper to set up and maintain.
 
It should be noted that this program also comes with certain restrictions. However, the business owner setting up a small bakery registered as a sole proprietorship can change the business form into a limited liability company any time.
 

The bakery and cereals market in Singapore

 
The Singapore bakery and cereals market is very prolific with more than 50 local shops selling all sorts of goods, as reports indicate that:
 
  • -  this industry has generated a total revenue of 730.4 million USD in 2019;
  • -  the consumption level increased by 5.1% between 2015 and 2019 reaching 136.5 million kilograms in 2019;
  • -  by 2023, the market is expected to grow to 6%;
  • -  most consumers of such products are aged 23 to 34.
 
For assistance in opening a bakery, please contact our company formation advisors in Singapore.
 

 

Why choose us?

Roger Pay is the Managing Director of Bestar and an experienced company formation consultant. He will help you open your company in Singapore as fast as possible. 

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As a Bestar clientyou will benefit from the joint expertise of local lawyers and consultants for opening an offshore company in Singapore.

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Call us now at +65 97236684 in order to set up an appointment with our consultants in Singapore

 
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