HOW TO SET UP A HOME OFFICE IN YOUR HDB HOUSING ESTATE FLAT

If you want to set up a business in Singapore and don't have the funds to rent an office space, then this is the answer... RENT FREE home office. You can use your home address as your office address when registering your business through ACRA (Accounting and Corporate Regulatory Authority).It's easy to apply, if you are the Owner, tenant, authorised occupier and subtenant of an HDB flat, and over 18 years of age and above, then you are eligible to apply under the scheme. The administrative fee is only $20 and can be paid using creditcard, the approval is valid for 5 years. The permit must be renewed after the approved period.

There are some restrictions in the mode of business to be conducted though and no signages allowed for display. You can register your business as a sole-proprietorship, partnership, limited liability partnership or private limited company. So who can use the office? The Home Office Scheme allows a maximum of  2 non-residents. The non-residents could be the partners, shareholders, directors of the business or employees. And how about the property tax,worry not as long as the HDB flat is still being principally occupied by the owner as residence, the owner-occupied concessionary tax rate would continue to apply.

So who says it's difficult to be your own boss? Now all you have to do is formulate that lucrative business plan and redecorate your home to have room for your new home office!

 
Terms & Conditions


To qualify for the Home Office Scheme, the following conditions must be met:

1.The person conducting the business must be the owner, tenant, authorised occupier or approved subtenant of the flat. The flat must remain as a place of residence. The business use must be ancillary to the residential use and the business activities should be confined within the flat.

2.The business has to be registered with the Accounting & Corporate Regulatory Authority unless it is exempted from registration under the Business Registration Act.

3.The flat cannot be used as a home office or registered address for a society.

4.The business must not generate noise, smoke, odour, chemical/liquid waste or dust that could become a nuisance.

5.The business activities must not be illegal, unlawful or immoral (eg. gambling or pornography related activities).

6.The business activities must not introduce excessive extraneous human or vehicular traffic to the surrounding or neighbourhood.

7.There must be no solicitation of business that may cause annoyance to the residents or public (eg. distribution of brochures/flyers or door-to-door visits/sales).

8.There must be no selling of physical goods.

9.There must be no display of advertisements or posters.

10.The applicant must take all necessary safety precautions and ensure that the business activities do not pose any danger to human lives or damage to properties.

11.Consumption of electricity and structural load must not exceed the normal residential load. Storage and use of dangerous chemicals and hazardous substances are strictly prohibited.

12.The business activities must not adversely affect the character, ambience and environment of the residential estate.

The business must comply with the fire safety requirements imposed by the Fire Safety and Shelter Department :

1.To install one 2kg ABC Dry Chemical Powder fire extinguisher to the office area.

2.To install one single-station smoke detector to the office area. (For enquiry on the fire safety requirements, please call FSSD at Tel No. 62800000)

3.The business must comply with the regulations of other government authorities and relevant licences/approvals must be obtained before commencement of business. To search for the licences/approvals that may be required for the business, the applicant can go to On-line Business Licensing Service.

List of Businesses that are not permitted under the Home Office Scheme

Businesses that are not permitted under the Home Office Scheme are:

1.Maid Agency/Employment Agency
2.Contractors Business
3.Car Trading Business
4.Commercial School e.g. music, dance, language school or tuition centre
5.Sales/Marketing that involve conducting seminars/talks for large number of customers
6.Courier Business
7.Manufacture, Preparation or Processing of products and goods. Examples are food products, beverages, textiles, apparel, handbags, footwear, wood and paper products, pharmaceutical products, soap, food chemicals, additives, joss sticks, camphor products, glass, plastic, rubber products, domestic appliances, watches and clocks and other related products.
8.Ophthalmic Dispensing/Pharmacy/Medical or Dental Clinics/Veterinary Medicine
9.Card Reading/Palm Reading or fortune telling in any form
10.Funeral chapels or homes
11.Mausoleums
12.Shops and any form of retail activity, including pet shops
13.Food Catering/Restaurants
14.Conducting of dress making/embroidery lessons
15.Repair of household appliances, electrical products, footwear, etc.
16.Beauty /Hair-Dressing/Massage therapy services

Examples of Businesses that are permitted under the Home Office Scheme

Examples of businesses that are permitted under the Home Office Scheme are:

1.Accountancy Services
2.Architectural Services
3.Consultancy Services (Business)
4.Consultancy Services (Engineering)
5.Consultancy Services (IT/Management)
6.Consultancy Services (Education)
7.Design / Advertising Services
8.Transportation Services
9.Estate Agency
10.Insurance/Financial Planning Services
11.Technology based and knowledge intensive business
12.Trading Office

http://www.hdb.gov.sg/fi10/fi10206p.nsf/WPDis/Setting%20Up%20A%20Home%20OfficeOverview?OpenDocument

Please read my POST on BE YOUR OWN BOSS APPLY FOR ENTREPRENUER EMPLOYMENT PASS to learn about the procedures and requirements for setting up a Business in Singapore