Starting a food and beverage (F&B) franchise in Singapore can be an exciting and rewarding business opportunity. However, there are several legal requirements that must be met to ensure compliance with local regulations. Understanding these requirements is crucial to ensuring your business incorporation is legally sound and ready to operate smoothly.
In this guide, we’ll walk through the key legal steps and considerations you need to take into account when establishing an F&B franchise in Singapore. From franchise agreements to licences, permits, and the regulatory environment, we’ll break down everything you need to know to get your business off the ground.
Before you can open your F&B franchise, you’ll need to sign a franchise agreement. This document is fundamental in outlining the relationship between the franchisor and the franchisee. It defines the roles, responsibilities, rights, and obligations of each party.
Example: For instance, if you’re opening a well-known burger chain, the franchise agreement will specify where your outlet can be located and the fees associated with your use of the chain’s name, logo, and recipes.
Before starting your franchise operations, you’ll need to officially register your business in Singapore. This includes choosing the appropriate business structure, such as a sole proprietorship, partnership, or private limited company.
Example: If you want to open a coffee franchise, you’ll need to ensure that your company name isn’t already taken by another business and that your directors meet the necessary criteria.
In Singapore, F&B businesses are subject to a range of licences and permits to ensure food safety, hygiene, and compliance with local laws.
Example: If you’re opening a fast-food restaurant, you’ll need to apply for a Food Shop Licence from SFA, which ensures your premises meet all necessary hygiene and safety standards.
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As an F&B franchise owner, you’ll be required to comply with Singapore’s employment laws. These laws govern wages, working hours, employee benefits, and other employment-related matters.
Example: Suppose your F&B franchise employs foreign workers. In this case, you must secure appropriate passes for them, ensuring their employment complies with Singapore’s foreign labour regulations.
Food safety is a top priority in Singapore’s F&B industry, and there are strict regulations in place to ensure consumer health is protected. These regulations are governed by the Singapore Food Agency (SFA).
Example: If you are opening a restaurant that serves imported seafood, you must ensure that all food safety protocols are followed, from importation to storage, preparation, and labelling.
Your F&B franchise will also need to comply with Singapore’s taxation laws. This includes registering for Goods and Services Tax (GST) if your business turnover exceeds a certain threshold.
Example: If your franchise’s sales surpass S$1 million annually, you’ll need to register for GST, ensuring your business complies with Singapore’s taxation laws.
Starting an F&B franchise in Singapore involves several legal steps that require careful planning and compliance. From understanding franchise agreements to registering your business, obtaining licences, and ensuring food safety, each element plays a critical role in the successful operation of your franchise.
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.
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