How to start a home business in Singapore: home rules, registering and first customers

HDB has two schemes for flats. The Home-Based Business Scheme, which many people search for as the home-based small-scale business scheme, covers small-scale work run by your household only, such as home baking, hairdressing or tuition. The Home Office Scheme covers office-type work, such as admin or design: it allows up to two people who don't live in the flat to work with you, but customers can't visit.

For private homes, URA sets the rules. Its conditions make a good checklist for any home business:

HDB's list of businesses not allowed at home includes massage and animal-related services such as pet grooming or boarding in the flat. Domestic workers can't work in your home business. Beauty services such as hairdressing, facials and manicures are allowed. If your idea isn't clearly on the allowed side, check with HDB before you buy equipment or take bookings.

ACRA says you need to register if you carry out an activity for profit on a regular basis, or if you use any name other than your own full name. Its own examples include a home-based business under a brand name, such as cakes or tuition, and selling through an online store or social media.

You don't need to register if the business uses only your full NRIC name. 'Bakes by Tan Mei Ling' adds to your name, so it must be registered. Not registering when you should can bring a fine of up to S$10,000 or up to two years in jail, and an unregistered business may find it hard to enforce contracts.

You register on ACRA's Bizfile with Singpass. You must be at least 18, every business needs at least one local resident (a Singapore citizen, PR or certain pass holders), and self-employed people must be up to date with MediSave before reserving a business name. Most are approved soon after payment, and you receive your UEN, the number you use with government agencies.

Most home businesses start as a sole proprietorship because it's quick and cheap. A private limited company costs more to run but keeps the business separate from you. ACRA's comparison, in short:

ACRA says you can use your home address as the business address under the Home Office Scheme, with prior approval from HDB for flats or URA for private homes. HDB's Home Office Scheme registration is made online with Singpass and a small fee; check the current fee and conditions with HDB when you apply.

Home-based food businesses don't currently need an SFA licence, but they must follow food safety laws, and SFA can act on any breach. The main limits:

PayNow is how most customers in Singapore expect to pay. Once you have a UEN, your bank can link it to your business account through PayNow Corporate, and customers pay without needing your account number.

In AQUORIA O.N.E you type your PayNow mobile number or UEN once, and every order shows a PayNow QR for the exact amount, paid straight to your bank. Customers can attach a screenshot of their payment for you to check. Cash and bank transfer work too, and card payments online once you open your own payment account.

With no signs allowed at home, your first customers come from people you know and from online. A simple order of work:

IRAS asks self-employed people to keep proper records and accounts for five years: invoices and sales records for income, receipts for expenses. Rough guesses and incomplete records aren't accepted. A sole proprietor's profit is taxed at personal rates, so these records feed straight into your yearly tax return.

GST is a later question for most home businesses. Registration becomes compulsory when taxable turnover goes above S$1 million in a calendar year, or is expected to within the next 12 months. Until you're registered, don't add GST to your prices.

In AQUORIA O.N.E every order and payment is kept with its date, so sales, what's owed and your invoice list are ready for your accountant, and invoices export to a spreadsheet.