Home-based food sales have become an attractive opportunity for many aspiring entrepreneurs in Singapore. Whether you’re baking pastries from your kitchen or selling homemade snacks to friends and neighbours, the Home-Based Business Scheme provides flexibility without the need for a retail license.
However, Singapore small business owners must follow specific rules to stay compliant—especially when it comes to food safety, operational limits, and financial tracking.
Understanding these rules, along with how accounting services in Singapore can support your setup, will help you start and run your food business with confidence.
Operating a home-based food business in Singapore comes with several important conditions. Even though you don’t need a Singapore Food Agency (SFA) licence, you still have to follow the rules that ensure food is safe and that your business doesn’t disrupt your residential area.
Home-based food businesses do not need an SFA food retail licence due to their small scale and lower food safety risk.
This includes home bakers, snack makers, and others preparing food at home for direct sale to individual customers.
Even without an SFA licence, you must comply with the Environmental Public Health Act and the Sale of Food Act.
Food must be safe for consumption, handled hygienically, and stored properly to avoid contamination.
Only residents of the home (owners, tenants, or registered occupants) can operate the business.
You cannot hire external staff who do not live in your household.
No signage or advertisements can be displayed on your home premises.
Orders must be small-scale, typically direct to households. No catering or large batch production is permitted.
Food cannot be sold to licensed SFA establishments (like cafés or hawkers).
You can offer deliveries within Singapore on a small scale.
A “home café” is only allowed if it does not invite the public into your home or resemble a commercial café setup.
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Managing your finances is just as important as meeting food safety standards. Proper accounting helps ensure your business stays sustainable and compliant with tax regulations in Singapore.
Here’s how accounting services can assist:
Track income and expenses: Whether you’re accepting orders through PayNow or buying ingredients from the market, tracking every transaction helps you stay in control of your finances.
Prepare for IRAS requirements: Even small businesses must report income correctly. Accounting services help with accurate tax reporting and understanding what’s deductible.
Cash flow clarity: With clear records, you’ll know when to reinvest in supplies, whether you can scale up, or when it’s time to adjust prices.
Business viability: Accounting tools and expert support help you evaluate if your business is profitable or needs changes.
Audit readiness: If you’re ever reviewed by IRAS, having clean books gives you peace of mind.
Good financial habits early on protect your business from future stress and position it for long-term success.
Even with simple rules, it’s easy to make avoidable errors. Here are common missteps many home-based food entrepreneurs make:
Selling to restaurants or food stalls
Food from home cannot be sold to licensed establishments. Always check where your food is going.
Advertising your home as a café
Don’t invite walk-in customers or post your address publicly. Keep all sales online or through private channels.
Taking on too many orders
Stick to a scale that fits your home setup. Large batches or frequent deliveries may breach residential guidelines.
Involving people who don’t live with you
Only household members can participate in food preparation and operations.
Ignoring bookkeeping
Financial records are important even for home-based businesses. Stay organised from the start.
Mislabeling or misleading claims
Be careful with allergy statements or health claims, especially if you plan to label your packaging. Transparency builds trust.
Singapore allows home-based food sales under a generous and accessible scheme, but it comes with clear limitations. While you don’t need an SFA licence, you must follow rules around food safety, keep your operations modest, and maintain your residential space without disruption. For Singapore small businesses, pairing a good understanding of compliance with reliable accounting services can make your home-based food venture both legally sound and financially viable.
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