Incorporating a Dessert and Ice Cream Shop in Singapore: A Complete Guide

Opening a dessert or ice cream shop in Singapore offers exciting opportunities in a thriving food and beverage industry. However, navigating the regulatory landscape and understanding the steps involved in incorporating such a business is crucial for success.

This comprehensive guide walks you through the essential steps to ensure your business is set up correctly, including the importance of company registration service, and covering all legal, operational, and financial considerations.

1. Licensing and Permits

To legally operate a food business in Singapore, you must secure the necessary licenses and permits. Without these, your shop cannot legally operate, and non-compliance can lead to penalties.

• Food Shop Licence: This is required for all food establishments and ensures that your shop meets the necessary hygiene and safety standards. Applications are handled by the Singapore Food Agency (SFA).
• Food Hygiene Certification: Anyone involved in food handling must undergo food hygiene training and certification, which is accredited by the National Environment Agency (NEA).
• Additional Licenses: If you plan to serve alcoholic beverages or specialty food products, you’ll need to apply for additional licences from Singapore Customs.

Example: If you decide to serve alcoholic ice cream, you’ll need to obtain the relevant alcohol licences through Singapore Customs on top of your food shop licence from the SFA.

2. Health and Safety Compliance

Maintaining a clean, safe, and hygienic environment is key to operating a successful dessert or ice cream shop.

• Food Safety Inspections: The Singapore Food Agency (SFA) regularly inspects food establishments to ensure that hygiene standards are met.
• Employee Hygiene: Employees must attend a mandatory food safety course accredited by the NEA, ensuring that they are trained in best practices for food safety.
• Workplace Safety: In addition to food safety, you must ensure your premises comply with Workplace Safety and Health Council guidelines, especially if your shop uses machinery.

Example: Before opening your ice cream shop, schedule a pre-opening inspection with the SFA to ensure that all food safety requirements are in place.

3. Choosing the Right Business Structure

Selecting the right business structure is a crucial decision that will affect everything from tax liability to your ability to raise capital. The most common options in Singapore are:

• Sole Proprietorship: Suitable for smaller operations. As a sole proprietor, you are personally liable for business debts.
• Partnership: If you plan to run the business with one or more partners, a partnership structure splits profits and liabilities according to an agreed ratio.
• Private Limited Company: The most popular choice for small business owners, offering liability protection and growth potential. It is ideal if you plan to expand and raise funds.

Once you decide on the structure, you will need to register your business with the Accounting and Corporate Regulatory Authority (ACRA), which oversees the incorporation of companies in Singapore.

Example: If you want to limit personal liability and have the option to raise capital from investors, you should consider incorporating your dessert shop as a private limited company.

✅  Our expert team streamlines your business journey, from company incorporation to tax filing. We offer transparent pricing, dedicated support, and industry expertise for your peace of mind. Discover our all-inclusive incorporation packages here.

4. Selecting the Right Location

Choosing the right location is one of the most important factors in the success of your dessert or ice cream shop. It directly impacts your visibility and sales potential.

• High-Traffic Areas: Popular spots like Orchard Road, Marina Bay, and malls are ideal for dessert businesses as they attract large numbers of people.
• Zoning Requirements: Your shop must comply with the Urban Redevelopment Authority (URA) zoning laws, ensuring the location is designated for commercial use.
• Lease Terms: Ensure that the terms of your lease are clear, including rent, duration, and responsibilities.

Example: You might consider opening in a shopping mall to capitalise on foot traffic, but be sure to factor in the higher rental costs when calculating profitability.

5. Staffing and Training

Your staff plays a pivotal role in delivering a great customer experience. Here’s what you need to consider:

• Hiring Local or Foreign Workers: You can hire both local and foreign workers. Foreign workers need to obtain the appropriate work passes such as the Employment Pass or S Pass through the Ministry of Manpower (MOM).
• Training: All employees should undergo food safety training and customer service training to ensure high standards.
• Employee Welfare: Be sure to adhere to the Employment Act, which governs employment terms and conditions in Singapore.

Example: If you plan to hire staff to operate your ice cream machines, ensure that they are trained in both equipment handling and food hygiene.

6. Financial Planning

A sound financial plan is essential for the long-term success of your business. Consider the following when planning your budget:

• Startup Costs: These include kitchen equipment, décor, inventory, and licenses. You will also need to budget for renovation costs.
• Ongoing Expenses: Be mindful of rent, utilities, wages, and marketing expenses.
• Tax and GST: You will need to file taxes annually with the Inland Revenue Authority of Singapore (IRAS). If your turnover exceeds S$1 million annually, you must also register for Goods and Services Tax (GST).

Example: Initial investments may be substantial, but focusing on high-quality equipment and ensuring a clean, appealing environment will help you build your brand and attract customers in the long run.

7. Marketing Your Dessert or Ice Cream Shop

An effective marketing strategy is vital for attracting customers and building a loyal customer base.

• Social Media: Use platforms like Instagram, Facebook, or TikTok to showcase your desserts and engage with customers. Share mouthwatering photos of your ice cream and behind-the-scenes content to create buzz.
• Promotions and Events: Hold special events such as “happy hour” discounts, collaborations with local influencers, or limited-edition flavours to attract new customers.
• Loyalty Programs: Offer loyalty programs where customers earn discounts or rewards for repeat visits.

Example: Hosting an “Ice Cream for a Year” giveaway or partnering with local influencers to promote your shop on social media can boost visibility and attract new customers.

Summary

Starting a dessert or ice cream shop in Singapore can be an exciting venture with the right planning and adherence to regulations. By ensuring you comply with licensing and safety standards, selecting the right business structure, and securing the right location, you can set your business up for long-term success. Don’t forget the importance of solid financial planning and effective marketing to help you grow and thrive in the competitive F&B industry.

Using a Company Incorporation Service as an extension of your team

Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email [email protected], or use our contact form to get started.