Running a business from home sounds like a dream: no rent, no commute, the freedom to hustle in your pyjamas, and no pretending to look busy. For many small entrepreneurs, freelancers, and side-hustlers, a home-based setup is the perfect “soft launch”. It is flexible, low-risk, and manageable even if you’re juggling a day job or caregiving.
But before you turn your living room into a mini HQ, there are rules. Singapore gives quite a bit of leeway, but it also draws very clear lines about what you can and cannot do from home.
So here’s your one-stop, plain-English guide to running a legal, compliant home business. What’s allowed, what’s not, and what to watch out for, so no one ends up knocking on your door asking why your “home office” smells suspiciously like a bakery.
Is it legal to run a home business?
The short answer: yes, if you do it properly. Singapore does allow home-based businesses, and in fact, it’s one of the most affordable ways to get started. Compared to renting a commercial office or shop, the startup cost is incredibly low. You get to avoid paying shop rental, utility deposits, renovation expenses, and all the other joy-killers of a traditional business setup.
Running a home-based office also gives you flexibility. It’s great for solo entrepreneurs, freelancers, consultants, designers, and small teams who don’t need a full retail front. You work from home, enjoy better work-life balance, and only fight with your Wi-Fi connection, not MRT crowds.
When done correctly, it’s perfectly legal and actually a very smart way to start a business. But, legality depends on how your business operates and whether it fits the criteria of approved schemes. Because yes, there’s more than one scheme, and choosing the wrong one can land you in hot water.
What is the Home Office Scheme or Home-Based Business Scheme in Singapore?
Image credit: URA
If you’ve ever thought that starting a business at home and assumed that all you need is a laptop and good Wi-Fi, you’re not alone.
In Singapore, starting a “home business” actually refers to 2 different schemes, and if you confuse them, you might accidentally run an illegal café in your living room. To keep you out of trouble here’s what each scheme really means.
The Home Office Scheme (HOS)
The Home Office Scheme is the more serious, official, clipboard-wielding option. It’s designed for people who want to run a small office out of their home; think laptop warriors, writers, designers, freelance accountants, IT troubleshooters, and anyone whose business mainly lives inside their Google Drive.
Under this scheme, you need to register with URA (if you live in a private property) or HDB (if you live in a flat). Once approved, you can convert a quiet corner of your home into your HQ.
That means no turning the entire living room into your 20-person startup office, no receptionist, no signboard with a name like “Agile & Synergistic Solutions Pte Ltd”.
You can have up to 2 non-resident employees come in to work, but no customers or retail activity is allowed.
Think of it as: Work From Home, but with proper paperwork.
The Home-Based Business Scheme (HBBS)
Image credit: Zxg W
Now, this is the scheme most Singaporeans unknowingly have in mind when they ask, “Can I run a business from home?” The Home-Based Business Scheme is a flexible framework that allows residents to carry out small-scale services without applying for formal approval.
This includes the classic Instagram home bakers, people selling handmade crafts or tutors teaching a couple of students.The idea is “small, quiet, and neighbour-friendly”.
In other words: if your neighbour can smell your brownies but can’t hear your mixer whirring away like a jet engine at 2am, you’re probably fine.
But the HBBS has limits. You can’t run a full catering business, a home salon, or a bubble tea stall from your kitchen window. Small batch? Okay. Commercial takeover of your corridor? Absolutely not.
Think of this scheme as: side-hustle-friendly, but don’t become the next Chagee.
So what’s the difference in home business schemes in Singapore?
Here’s the cheat code:
- If your business needs mostly a laptop — Home Office Scheme
- If your business involves small-scale food, crafts, tuition, handmade goods, or small imports from overseas (keychains, stickers, etc) — Home-Based Business Scheme
- If your business involves any level of noise, smells, machinery, or queues that would impact your neighbours and/or the surrounding space — Neither scheme; get a proper shop
Together, these schemes make home businesses possible, as long as you pick the right one.
What kind of businesses can you run from home?
Types of businesses that are generally allowed
Under the Home Office Scheme, URA and HDB generally allow office-based or knowledge work. Think of businesses that mostly involve sitting at a desk, clicking away, Zooming, designing, or advising.
Examples include:
- Consultancy and professional services
- Creative/design services
- Administrative or back-office functions
- Online-only or remote work with no customer or client visits
Basically, if your business looks like you could do it in pyjamas without anyone noticing, you’re on the right track.
Meanwhile, the Home-Based Business Scheme is more flexible for small-scale selling or services. More examples other than the ones mentioned before are your TikTok bakers, Etsy crafters, online tuition providers, or anyone packaging small goods at home.
Types of businesses that are generally not allowed
Both schemes come with strict “don’t be a nuisance” rules. But here’s what typically won’t fly:
- Manufacturing, processing, or assembly
- Large-scale food preparation
- Beauty, hair, spa, or massage services
- Commercial classes or classes like workshops that attracts many visitors
If your plan involves a bakery that smokes up the corridor, a massage parlour disguised as a mini-gym, or a children’s dance studio in your living room, you can expect complaints and rejection.
Who can apply for a home office?
Not just anyone can throw up a “home office” sign and call themself a boss. For HOS, applicants must be:
- Homeowners, tenants, or family members officially listed as occupants of the property
- At least 18 years old
- Individuals who haven’t been previously barred from using the scheme
Tenants must get written consent from the homeowner before applying. No sneaky subletting of the living room as your startup hub, sorry.
For HBBS, things are simpler, with no formal approval needed, but your activity must stay small and non-disruptive.
In short: if you live there, you can probably do it. But if your plan requires your family to start living in the corridor, that’s a sign you need a real office.
Rules you need to know when running a home business
Image credit: MyRepublic
Even if you’ve got approval to start your home business, there are still rules you need to follow like we mentioned in earlier points. Ignore them, and you could end up with your registration revoked.
Here are the key rules, simplified:
- Your home must remain primarily a residence.
- Under HOS: up to two non-resident employees allowed. Under HBBS: solo only.
- No signage, banners, or mini billboards outside your flat.
- No walk-in customers; retail activity is restricted and only collections are allowed.
- Avoid noise, smoke, unpleasant odours, or anything that irritates neighbours.
- Get the homeowner’s written consent if you’re a tenant.
- Keep your space tidy and fire-safe.
- Make sure you have any required licences (coming up next).
And for food sellers in particular: you cannot sell food to licensed food retailers, nor prepare and sell raw seafood like sashimi at home.
How to register your home office: a step-by-step process
With all that said and understood, here’s how to actually apply for the Home Office Scheme:
- Check your business type. Office-based, knowledge work, admin, or creative services? You’re good. Anything else might need a different licence.
- Apply with URA (private property) or HDB (flat). Tenants need written consent from the owner.
- Pay the registration fee. For private properties, it’s a one-time permit valid for the duration of the business.
- Check if your business needs any additional licences. Use the official licensing portal, don’t rely on Google search alone.
- Set up your office zone with fire safety gear like an extinguisher, and plan operations so you don’t breach rules on noise, odour, or traffic.
- Congratulations on your new business!
Remember: if your business becomes disruptive, authorities can revoke your registration.
For Home-Based Business Scheme, no formal registration is required. But you still need to ensure your operations are small-scale, safe, and neighbour-friendly.
Additional licences you may need
Image credit: skiidu
After setting up your home office or home-based business, make sure you have the proper licenses before you do anything. Most businesses, whether under HOS or HBBS, require an ACRA registration, unless you’re a very rich freelancer who can afford to work only once every 6 months.
You’ll also need to pick a business structure: Sole Proprietorship, Partnership, or Company, because mixing personal and business money is a horror story waiting to happen.
Certain professions like law, finance, and engineering require official certification.
For online retail or e-commerce, compliance with the Consumer Protection (Fair Trading) Act, and product-specific rules is a must, even under HBBS.
F&B sellers, take note: SFA food handler certification is essential if you’re selling food. HOS is strict on this, but HBBS can allow some small-scale, neighbour-friendly food businesses.
If your business involves media, publishing, or broadcasting, or offers personal services like tuition or coaching, check MCI and IMDA for the required approvals. Import and export businesses need Customs registration and permits for restricted goods, and anyone handling customer data must follow PDPA rules.
Lastly, fire safety is compulsory. Even a modest home office should have smoke detectors, a basic fire extinguisher, and a tidy setup for electronics and papers, because burnt toast is one thing, but a burnt house is another.
Home businesses in singapore to take inspiration from
Image credit: Acuppa
If you need a little spark to get your entrepreneurial engines running, Singapore’s home business scene is surprisingly vibrant. In fact, you can scroll through an entire directory of them on Acuppa, a platform that gathers home-based businesses from across the island.
Here are a few real-life examples that show just how diverse the home business ecosystem can be:
Watcha.sg
Based in Henderson Crescent, @watcha.sg specialises in Japanese tea, particularly matcha and hojicha. Whether you’re a tea snob or just want to feel classy while drinking something green, this home business shows how niche products can thrive from a home setup.
Loafcrumbles
A Muslim-owned bakery business selling pastries, cookies, and rolls that look dangerously addictive. @Loafcrumbles is proof that HBBS can give birth to very tasty threats to your diet.
Roundbellies Tengah
Operating from Tengah, @Roundbellies_Tengah dishes out comfort food like spaghetti, soups, beef melts, and even bento boxes. It’s the kind of place that makes you question why these home cooks haven’t opened a cafe instead.
Mochi Buddies
Not everything is food… well, almost. @mochibuddies, is a full-time artist behind the brand Mochi Buddies, inspired by the Japanese rice cakes. The merchandise sold includes stickers, stationary, bags, pouches, and many more. So not only can you draw at home, you can also earn money from it. Check out our feature on her abode, which is a toy collector’s dream home.
Sewing Atelier
And for a home business that’s 100% nothing to do with food yet completely legal: sewing. Nestled in Tampines, @sewingatelier.sg runs classes that range from dressmaking & tailoring to sewing & alteration. So, it seams like sky’s the limit!
These are just a few of the hundreds of creative ventures that started right from someone’s living room, kitchen, or spare room.
Setting up a home business in Singapore
With commercial rents climbing faster than your heart rate after some staircase cardio, it’s no wonder home businesses are gaining popularity. The convenience, lower costs, and flexibility are undeniably attractive, but the key to success is choosing a business idea that fits the rules of the Home Office Scheme or Home-Based Business Scheme.
Home businesses can be incredibly rewarding, whether you dream of running a consultancy, crafting pastries, or selling niche products. With the right idea, proper licensing, and a space that’s still unmistakably a home, you’ll be well on your way to becoming one of Singapore’s many successful home entrepreneurs.
Check out these cheap estates and flats to potentially start your business from:
- 4 cheapest estates to find freehold landed properties in Singapore
- 4 cheapest 4-room HDB resale flats to buy under $520K
- 8 cheapest jumbo flats to buy in 2025
Cover image adapted from: Uchify, @orkobakehouse
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