Starting or running a small food retail business in Singapore? Whether you’re selling pre-packed snacks at a market stall or operating a home bakery, understanding the SFA requirements is essential for staying compliant and building a sustainable business. These regulations go hand in hand with keeping accurate records — a key part of accounting services in Singapore that support proper tracking of costs, licences, and tax compliance for small operators.
Home-based food operators such as bakers or home cooks are generally not required to obtain an SFA food retail licence, provided their operations meet certain conditions.
No licence is needed for small-scale, home-based food businesses
These businesses must not provide catering services
Food must be prepared in a clean, hygienic environment
Operators must still comply with food safety laws and good practices
Even without licensing, these businesses are responsible for ensuring their food is safe. Clear documentation of expenses and sales can support both hygiene compliance and better bookkeeping.
Effective 1 January 2025, SFA has streamlined regulations for certain food retail activities:
Stalls selling low-risk, pre-packed food items in hawker centres or markets are exempt from licensing
These include factory-sealed beverages, packaged snacks, and other non-perishable goods
Such stalls are regulated through upstream controls on importers and suppliers
What businesses still need to do:
Keep clear records of suppliers
Retain purchase invoices for traceability
Ensure labelling and shelf life information is properly managed
While licensing may not apply, managing your supply chain and keeping accurate records is still critical for financial and operational clarity.
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Food businesses operating in physical spaces such as bakeries, snack counters, or hawker stalls must apply for the relevant licences:
Food Shop Licence – for standalone outlets like bakeries or cafes
Food Stall Licence – for stalls within food courts or shared premises
Premises approval from relevant authorities
At least one certified food handler
Valid pest control contract
Hygiene compliance (e.g. refuse management, ventilation)
Submission of layout plans for review
Applications usually take about 7 working days if documents are in order. This timeline is important when planning for opening day and budgeting for start-up costs.
From an accounting perspective, tracking fees, contractor payments, and setup costs will help maintain accurate books and ensure transparency for audits or financing.
If your business only facilitates sales online and does not handle, store, or prepare food, you do not need an SFA licence.
However:
Food safety regulations still apply
You must ensure all food comes from licensed suppliers
Labelling, shelf life, and product traceability must be maintained
Digital businesses often underestimate the need for organised documentation. Invoices, supplier certifications, and order fulfilment records should be tracked carefully to ensure both compliance and financial clarity.
Adhering to SFA requirements helps more than just regulatory compliance—it supports better business management. Examples include:
Tracking licensing costs as part of your business expenses
Logging pest control and hygiene service invoices for tax and audit purposes
Maintaining supplier records for traceability and expense accuracy
Supporting applications for grants or funding with well-kept compliance documentation
For Singapore small businesses, a clear link between operational compliance and sound financial reporting often results in greater business confidence and resilience.
Understanding the SFA requirements is critical for any small food retailer in Singapore. Home-based businesses and market stalls selling low-risk, pre-packed items may be exempt from licensing but are still expected to maintain food safety standards. In contrast, physical food shops and stalls must secure the proper licences and fulfil operational requirements, including hygiene compliance and certified staff. Online food retailers are exempt from licensing if they do not handle food directly, but they must still ensure product safety and supplier credibility. Regardless of the setup, every food retailer benefits from structured documentation and sound financial practices to ensure compliance, manage costs, and support long-term business success.
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