By Vlad Cuc, specialist in company formation matters
Most Singapore residents are so busy going to work or running their own businesses that they look for possibilities to reduce the home-related chores such as cooking, doing the dishes and cleaning the house. If instead of cooking one can eat at a restaurant and instead of cleaning can use the latest technology to spare some time on doing the dishes and vacuuming, doing the laundry was still an issue until some time ago. Anticipating the needs of more and more busy people, enterprisers in Singapore have started to catering to these needs by opening laundry businesses. Also, most real estate developers have built spaces at the basements of the residential homes and flats which can host laundromats.
Laundromats are becoming more and more popular in large cities such as Singapore, however, there is still the issue or where such a business must be located for clients to have quick access to it. There are several places in which such a laundry company can thrive and among these are:
- neighborhoods with blocks of apartments (luckily, there are many new residential neighborhoods in Singapore);
- at a specific location chosen by you, however, this implies additional services such as pick-up and drop;
- in commercial areas in order to cater to businesses like hotels and restaurants.
Setting up a laundry business in Singapore is not difficult as long as you research the domain thoroughly and prepare a realistic plan you will follow to develop your activity.
Also, another way of establishing a laundromat in Singapore is by buying a franchise. Even if this option is more expensive, the business model, brand and equipment will compensate the investment.
If you decide to set up a Singapore laundry business, our company registration advisors can take you through all the steps you need to complete. Moreover, we can also provide you with details on how to prepare for the opening of such a company.
Steps in opening a laundromat in Singapore
The creation of a laundry business in Singapore implies the same steps as for any other type of company, which are:
the selection of a legal form (there are several options that will be detailed below);
preparing the documents requested by the Accounting and Corporate Regulatory Authority (ACRA);
filing the documents, obtaining the Certificate of Registration and the tax identification number;
applying for the necessary business licenses requested to operate.
As we mentioned here, choosing a legal entity is very important when starting a Singapore laundry business. The main options are the private limited liability company and the sole trader. There are important differences between the two forms.
A laundry business is a great small enterprise idea as it does not require meeting special requirements or qualifications, which is why when set up as a sole proprietorship is can bring good profits. On the other hand, when set up as a private limited liability the risks of unsuccess are counterbalanced by the limited responsibility of the owner. There is also the option of registering as a sole trader in the beginning and then changing the business form by transforming it into a private company. No matter your choice, our Singapore company formation experts are at your service if you want to consult with someone.
You can also watch the video below for more information on how to open a company in Singapore as a laundry business in Singapore:
Draft a realistic business plan
As any other business, a laundry one needs a realistic business plan. You will first need to research the market and your direct competition and based on it create your own goals. However, if you decide to add an innovative feature to your company, it will help you differentiate from other similar companies and thus increase your chances of succeeding. One of the best examples, as presented above, is including pick-up and delivery services for busy clients which can help you stand out among competitors. You can also include dry cleaning and/or ironing services, if you consider this will help your business. However, these can be included into the business plan for later.
Technical aspects to consider when setting up a laundry business
One of the important aspects to consider when creating a Singapore laundry business are related to the technical side of this type of venture. Among these, here is what you need to know:
- choose carefully the electronics you will have installed while focusing on waste management which is very important in Singapore;
- the location must allow the connection to tailored sewage and power systems.
Also, expect inspections from various authorities before being issued the operating licenses.
There are several types of laundry businesses one can set up in Singapore, from self-operated to coin-operated ones, the entrepreneur must conceive a business plan so they know which option suits them best. Another thing to take into consideration is the location of the laundromat. Once these issues are solved, one can start the company registration process.
The first step to open a company in Singapore is to prepare the documents related to the registration and then file them with the Accounting and Corporate Regulatory Authority which will issue the business license. These steps are available for any type of business one wants to set up, including Singapore laundries. Then the licensing part must be fulfilled.
Our company registration agents in Singapore can help you with the company formation procedure when setting up a laundry business in the city-state.
Licenses for laundromats in Singapore
In order to open a company in Singapore and activate as a laundry business, one must apply for several permits and licenses in order to be allowed to operate.
Among these, licenses from the Health Sciences Authority and the Police Department are required. A water pollution license from the National Environment Agency is also required when opening a laundromat in Singapore. One must also pay attention to the sewage connections which must be secure.
How long does it take to set up a laundry business in Singapore?
The creation of any type of company does not take very long, however, businesspersons must consider a few important aspects, even when setting up laundromats. Among these:
- the preparation of all the documents that can take 2 to 3 days depending on chosen business form;
- the registration with ACRA and the Singapore tax authorities that can take up to 2 days;
- the licensing phase which is the longest and can take from 14 days to a month, depending on several factors, such the scheduling of all inspections of the premises of the laundromat.
Owners of laundry businesses in Singapore may also serve food and beverages in the premises, provided that they obtain a food license.