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Singapore is a hub for e-commerce. With its strategic location, advanced infrastructure, and digital-friendly economy, many entrepreneurs are launching online businesses. However, running an e-commerce business requires compliance with several legal requirements. This blog covers the mandatory licenses, customs permits, and grants for businesses in Singapore.
Beyond licenses, digital grants like the Productivity Solutions Grant (PSG) offer financial support. This reduces the cost of setting up your online store, developing your website, and running marketing campaigns. By following the right processes, you can ensure your e-commerce business runs smoothly and successfully in Singapore.
Business Registration with ACRA
The Accounting and Corporate Regulatory Authority (ACRA) ensures all businesses operating in Singapore are legally compliant. Even if your business is 100% online, it must be registered. There are the following types of business structures:
- Sole Proprietorship
Simple to set up; suitable for individuals running small businesses.
- Partnership
Suitable if two or more partners run the business jointly. However, partners are personally liable for business debts.
- Private Limited Company (Pte. Ltd.)
This structure limits the owner’s liabilities and is ideal for businesses looking to scale.
Steps to Register Your Business
- Search on BizFile+ to ensure your business name is unique.
- Include business activity codes, company address, and the identity documents of directors/shareholders.
- Submit your application through ACRA’s online portal.
- Once approved, you will receive your Unique Entity Number (UEN), which acts as your business identifier.
Also Read :- How Can Startups Use Singapore's Tech-Savvy Customers?
Licenses Based on Business Activities
Depending on what products you sell, specific licenses may be required. Some products—like alcohol, cosmetics, and food—need special approvals from regulatory bodies.
- Selling Alcohol or Tobacco Products
Apply with the Singapore Police Force if your e-commerce store sells or delivers alcohol. Issued by the Health Sciences Authority (HSA), this is essential for selling tobacco products.
- Food & Beverage Licenses
The Singapore Food Agency (SFA) regulates all food-related businesses. Even if your store only delivers pre-packaged food, a license is required. Food Shop License is needed for food retail, including online delivery platforms. Halal Certification should be gotten from MUIS if you market your products as halal.
- Selling Medical Products or Supplements
If you sell health supplements, cosmetics, or pharmaceuticals, an HSA License is mandatory. Non-compliance with HSA regulations can lead to fines and legal action.
Customs Permits for Import and Export
Many e-commerce businesses import goods from overseas suppliers. In such cases, you must comply with Singapore Customs regulations. Types of Permits for E-Commerce Stores:
- Import Permit is mandatory for goods brought into Singapore for resale.
- Export Permit is needed if you ship products to customers outside Singapore.
- Temporary Import Permit is used when bringing in goods for exhibitions or temporary events.
How to Apply for Customs Permits?
- Register with Singapore Customs for a Customs Account.
- Submit permit applications through the TradeNet system.
- Ensure you classify your goods correctly under the Harmonized System (HS) codes.
Compliance with PDPA
The Personal Data Protection Act (PDPA) ensures businesses handle personal data responsibly. This is critical for e-commerce businesses that collect customer information during online transactions.
How to Stay PDPA Compliant?
- Inform customers how their data will be used and stored.
- Always get customer permission before collecting personal information.
- Use tools like SSL encryption to protect sensitive data.
- Allow customers to opt-out of marketing emails.
PDPA compliance is essential, as breaches can result in hefty fines and reputational damage.
Also Read :- Untapped eCommerce Opportunities in Singapore
PSG for E-Commerce Development
The Productivity Solutions Grant (PSG) encourages small businesses to adopt technology. It covers up to 50% of qualifying costs, such as website development, software subscriptions, and logistics solutions.
Eligibility for PSG Grant
- Your business must be registered in Singapore.
- The technology solution must be pre-approved by PSG.
- Only local businesses with at least 30% Singaporean ownership can apply.
Shopify PSG Grant Application
If you’re building your online store with Shopify, you can apply for PSG support. This helps cover web development costs and Shopify subscriptions.
- Check the eligibility criteria on the Shopify website.
- Work with a PSG-approved vendor for store setup.
- Submit the grant application through the PSG portal.
A Website Design Company
Your website is the backbone of your e-commerce business. A poorly designed site can turn customers away. Working with experienced web developers and design agencies ensures your site looks professional and runs smoothly.
Delivery Services and Licenses
E-commerce businesses rely on fast and reliable delivery to satisfy customers. Some delivery providers offer solutions under the Qashier PSG Grant, helping streamline logistics.
Also Read :- How New E-Commerce Startups Differentiate Themselves From Established Players?
GST Registration and Tax Compliance
If your annual revenue exceeds S$1 million, GST registration is required. Once registered, you must charge 8% GST on sales and submit returns to IRAS.
Conclusion
Running an e-commerce business in Singapore requires proper planning and compliance. Start by registering your business with ACRA and obtain the necessary product licenses. Apply for the PSG grant to offset technology and marketing costs. Ensure data compliance through PDPA and partner with experienced web developers to build your online store. With the right licenses and support, your business is set for long-term success.
