How to Open a Café in Singapore: Licences, Costs and Checklist (2026)

This guide is general information, not legal advice. Fees and processes change, so check the latest on GoBusiness and with each agency before committing money.

Step-by-step overview

Here is the order most new café owners follow. Some steps overlap, but the dependencies matter. For example, SFA wants your tenancy agreement, and you should not renovate until SFA has approved your layout.

1. Concept and numbers. Decide what you sell, to whom, at what price, and roughly how many covers a day you need to break even.
2. Register the business with ACRA and set up Corppass so you can transact with government agencies.
3. Find premises and confirm the approved use allows a café (URA, HDB or landlord). Negotiate the lease, including fit-out time.
4. Design the layout with your contractor, including kitchen equipment, exhausts, sinks and wash basins.
5. Apply for the SFA Food Shop Licence on GoBusiness with your layout plan.
6. Apply for other approvals that apply to you: SCDF plans for fire safety works, liquor licence, signage, halal certification.
7. Renovate and install equipment once SFA has approved your layout.
8. Submit outstanding documents to SFA and book the pre-licensing inspection.
9. Hire and train staff, including food hygiene training.
10. Set up POS, payments and ordering, then run a soft opening before the public launch.

Business structure and ACRA registration

You need a registered entity before you can apply for most licences. SFA’s requirements page says a Food Shop Licence can be held by Singapore citizens, permanent residents, societies registered with MHA, or entities registered with ACRA. For companies, SFA asks for a recent ACRA business profile.

ACRA’s guide to choosing a business structure sets out the options. The two that most café owners weigh up are these:

• Sole proprietorship or partnership. Simple to set up. ACRA states that a sole proprietorship is not a separate legal entity from its owner, and that owners have unlimited liability.
• Private limited company. A separate legal entity, and shareholders have limited liability. It suits cafés with more than one investor, a sizeable lease or a plan to open more outlets. It comes with more compliance, such as annual filings.

A limited liability partnership (LLP) sits between the two. Many landlords and suppliers are more comfortable dealing with a company, and a lease usually runs for several years, so think about liability before you sign it. An accountant can advise on tax and filing for your situation.

After registering, set up Corppass. You use it to log in to GoBusiness, IRAS, CPF and other government services on behalf of the business.

Choosing a location: mall vs shophouse vs HDB

Location decides your rent, your footfall and which approvals you need. Check the approved use of a unit before you sign anything. A unit that was a clothing shop cannot automatically become a café.

Shopping malls and commercial buildings

URA’s criteria for restaurant use list shopping centres and commercial buildings as locations where restaurant use can be approved. Many mall units are already approved for F&B. The landlord or managing agent usually has its own fit-out guidelines, trading-hour rules, approved contractor lists and deposits. Ask for the fit-out manual early, because it affects your renovation cost and timeline.

Shophouses

Shophouses have character but need more checking. URA says shophouses outside certain problem areas are evaluated case by case. It also lists areas where new eating houses are unlikely to be approved, such as parts of Geylang Road, East Coast Road, Joo Chiat Road and the Little India historic district. If the unit is not already approved for restaurant use, you or the owner may need to apply for change of use through GoBusiness. URA states a processing fee of $500 and asks for documents including a floor plan and the owner’s consent. You can check a unit’s approved use first using URA’s approved-use enquiry service.

HDB shops

HDB neighbourhood shops can offer lower rent and steady local trade. HDB’s change of use guidance states that changing the use of an HDB commercial unit needs HDB’s prior approval, and that tenants of HDB rental units apply through GoBusiness. Check that your trade is on HDB’s allowable list for that unit before committing.

What to ask the landlord

• Is the unit approved for restaurant or café use, and can I see proof?
• Is there an exhaust riser, grease trap, gas supply and enough electrical load for coffee machines and ovens?
• How long is the rent-free fit-out period?
• What are the reinstatement obligations when the lease ends?
• Are there restrictions on trading hours, signage, alcohol or outdoor seating?

Licences you need

SFA Food Shop Licence

SFA’s list of food retail businesses that need a licence puts restaurants, takeaway kiosks and similar premises under the Food Shop Licence. A standalone café falls into this group. If you run a stall inside a food court or coffeeshop instead, a different licence applies.

According to SFA’s application process page:

• The Food Shop Licence costs $195 and is valid for one year.
• You apply on GoBusiness using Singpass or Corppass, and submit a layout plan. The plan needs a metric scale, kitchen equipment and infrastructure (for example exhausts, sinks and wash basins), and the boundaries of the seating area.
• SFA reviews complete applications within 7 working days. Incomplete applications are rejected.
• Once SFA approves the application and layout, you renovate to that layout.
• During renovation you submit outstanding documents: URA change of use or HDB approval, the tenancy agreement with IRAS’s Certificate of Stamp Duty, a cleaning programme and a pest control contract. SFA says the application is closed if these are not submitted within two months of applying.
• After renovation you request a pre-licensing inspection, done virtually or through photos.

SFA’s requirements page also says food handlers must have met WSQ Food Safety Course Level 1 training or retraining requirements when you apply. The detailed design rules are in SFA’s Food Shop Self-Checklist. Give it to your contractor before they start drawing.

SCDF fire safety plan approval

SCDF’s plan approval page says anyone carrying out fire safety works must first get plans approved. It gives converting a shop to an eating establishment as an example of a change of use that can trigger this. Plans are submitted by a qualified person, such as a registered architect or professional engineer. Some minor works are exempt, so ask your contractor or QP early.

Liquor licence (if you serve alcohol)

Serving beer or wine needs a liquor licence from the Singapore Police Force, applied for on GoBusiness. SPF’s licence classes page lists Class 1A (on-premises consumption, 0600 to 2359hrs) at $880 a year and Class 1B (0600 to 2200hrs) at $660. Pick the class that matches your trading hours, and check the latest fees before you apply.

Halal certification (optional)

MUIS halal certification is voluntary. The Eating Establishment Scheme covers restaurants, bakeries and similar outlets, and your SFA licence is among the documents MUIS asks for. So apply after you are licensed, but plan halal-compliant suppliers and storage from the start if you intend to certify.

Other things to check

Depending on your premises and concept, other permits may apply, for example for signage or outdoor seating. Search GoBusiness for your business activity to see what applies to you.

Fit-out, equipment and kitchen layout

The layout plan you give SFA shapes your renovation, so treat it as a working document, not a formality.

• Workflow first. Map the path from delivery to storage, prep, the pass and the dishwash. Keep raw and ready-to-eat food apart, and keep dirty returns away from the coffee station.
• Bar and counter. For a coffee-led café, the espresso machine, grinder, milk fridge, knock box and cup storage should sit within arm’s reach. Plan the POS terminal and payment terminal where the cashier can see the queue.
• Utilities. Espresso machines, combi ovens and dishwashers draw a lot of power and need water and drainage. Confirm load, gas and exhaust capacity with the landlord before you order equipment.
• Printers and screens. Decide where order tickets or a kitchen display go, and run power and network cabling there during renovation, not after.
• Buy or lease. Leasing or buying second-hand can protect your cash in the first year. Check warranties and service support before you buy.

Budgeting your opening costs

Every café is different, so we don’t quote a typical total. What matters is listing every category and getting written quotes for each. The official fees above are small next to rent and renovation. Plan for these categories:

Category	What it includes	Notes
Rent and deposits	Security deposit, advance rent, fit-out deposit	Often the largest upfront cash outlay. Negotiate a rent-free fit-out period.
Renovation	Design, construction, M&E, exhaust, plumbing, fire safety works	Get fixed quotes. Include reinstatement at lease end.
Equipment	Coffee machine, grinders, fridges, ovens, dishwasher, smallwares	Buy, lease or second-hand.
Licences and professional fees	SFA licence ($195), URA change of use fee ($500) if needed, liquor licence, QP and consultant fees	Official fees from SFA, URA and SPF pages. Check GoBusiness for the latest.
Technology	POS, payment terminals, printers, QR ordering, loyalty	Use our POS cost calculator and POS cost guide.
Opening stock	Coffee, milk, dry goods, packaging	Keep it lean until you know your sales mix.
Staff before opening	Salaries during training, uniforms, food safety courses	Staff are usually paid for a few weeks before revenue starts.
Marketing	Signage, photography, social media, launch promotions	Check landlord rules for signage.
Working capital	Cash to cover losses in the first months	Most new cafés take time to reach steady trade.

Build a monthly profit and loss forecast too: rent, wages, cost of goods, utilities, card fees and loan repayments against realistic daily sales. If the numbers only work at full capacity every day, rethink the site or the concept.

Hiring and training

Staff costs are one of your biggest monthly expenses, so plan your roster around your busiest hours rather than a flat headcount.

• CPF. The CPF Board states that employers must pay CPF contributions for employees who are Singapore citizens or permanent residents earning total wages of more than $50 a month.
• Foreign staff. MOM says all foreigners must hold a valid work pass before they start work. Eligibility and quotas depend on your sector and local headcount, so check with MOM before building your hiring plan around foreign staff. SFA also points F&B applicants to MOM for this.
• Food safety training. Make sure every food handler has completed WSQ Food Safety Course Level 1 before your licence application, as SFA requires.
• Service training. Run dry runs for the menu, POS, payments, allergen questions, opening and closing, and cash handling. A soft opening for friends and family finds the gaps before paying customers do.

Set staff permissions in your POS from day one, so that voids, discounts and refunds need a manager’s approval.

Tech stack: POS, QR ordering, payments, loyalty

Your tech choices affect counter layout, cabling and staffing, so settle them before renovation ends. For a typical café, think about:

• POS. A café POS should handle fast counter orders, modifiers (oat milk, extra shot, less sugar), table orders and split bills. ChaChaCha’s POS keeps taking orders if the internet drops and syncs later, and prints kitchen tickets in English or Chinese.
• QR ordering. QR ordering lets dine-in customers scan, order and pay at the table, or order ahead and collect. It reduces queues at the counter during the morning rush.
• Payments. Customers expect PayNow, NETS and cards. ChaChaCha supports PayNow, PayLah!, NETS, Visa/Mastercard and GrabPay, with automated reconciliation. See POS payments.
• Loyalty. Regulars drive café revenue. A loyalty programme with stamps or points, stored value and birthday rewards gives people a reason to come back.
• Stock and reports. Inventory tracking and sales reports show which items make money and when to reorder.

To estimate what a setup might cost, use the POS cost calculator. ChaChaCha pricing is quote-based, and we can quote for your layout.

Grants: the EDGE Grant

Enterprise Singapore’s EDGE Grant page states that EDG, MRA and PSG cease on 29 September 2026, and that businesses apply under the EDGE Grant from 30 September 2026. It lists support of up to 70% for SMEs, with support levels differing by activity, and pays grants on a reimbursement basis after the project is completed and paid for.

Two practical points for new cafés. First, eligibility rules apply, so check them before you count on a grant in your budget. Second, grants are reimbursed later, so you still need the cash upfront. AppsPOS, which powers ChaChaCha, has been a PSG pre-approved vendor and is approved under the EDGE Grant. Read our grant guide for POS systems for how this works.

Opening checklist

Stage	Task	Who / where
Set-up	Register business entity; set up Corppass	ACRA, Corppass
Set-up	Open business bank account; arrange financing	Your bank
Premises	Check approved use; get landlord’s fit-out guidelines	URA / HDB / landlord
Premises	Apply for change of use if needed	GoBusiness
Premises	Sign lease; stamp the tenancy agreement	Landlord, IRAS
Licensing	Submit Food Shop Licence application with layout plan	SFA via GoBusiness
Licensing	Fire safety plan approval if works require it	QP, SCDF
Licensing	Liquor licence if serving alcohol	SPF via GoBusiness
Fit-out	Renovate to approved layout; install equipment, cabling, POS and printers	Contractor, POS vendor
Licensing	Submit outstanding documents; cleaning programme; pest control contract	SFA
Licensing	Book pre-licensing inspection; pay licence fee	SFA
People	Hire; food safety courses; CPF set-up; work passes if applicable	CPF Board, MOM
Operations	Suppliers, menu costing, recipe cards, stock count	You
Launch	Test payments and QR ordering; soft opening; public launch	You, POS vendor
After opening	Track GST threshold (taxable turnover over $1 million)	IRAS

On GST: IRAS says you must register for GST if your taxable turnover is more than $1 million at the end of a calendar year, or is expected to be more than $1 million in the next 12 months. Most new cafés start below this, but check your turnover regularly, and read our note on service charge and GST.