How to get a retail business license

What licenses are needed to start a retail business depends on the city, county, and state laws in place. Depending on the requirements, you may need multiple licenses.

Types of Licenses

Examples of some of the required licenses needed when starting a retail business include:

• Sales tax license.
• Resale license.
• City or county business license or permit.
• Alcohol license or permit.
• Doing Business As (DBA) registration.
• Sign permit.
• Fire department permit.
• Health department license.

Information About Starting a Retail Business

First, choose the type of business you want to operate. Choices include:

• Partnership (general or limited).
• Corporation.
• Limited Liability Company (LLC).
• Sole proprietorship.

Each entity type has pros and cons as well as different fees and tax setups and consequences. Consult with an experienced professional, such as a business lawyer or an account to help you make the right decision.

Before going out an investing money in starting a retail business, one of the first things needed is a business plan, which includes a realistic budget. You'll also need to factor in how many employees the business will require and then budget their salaries, benefits, and taxes. When choosing a physical location for your retail business, it is important to check with the city or county about any zoning requirements and if the location you've selected allows retail operations.

You will also want to open a business checking account. You might also want to consider applying for credit under your business name. By doing so, you will establish a credit history for your business. This can make it easier to acquire funding such as loans or lines of credit in the future.

To help all employees be on the same page regarding policies and procedures, create an employee handbook. This ensures that everyone is treated in the same manner with the same rules, which can protect your business in the event an employee files a lawsuit.

You will need an Employee Identification Number (EIN) available through the IRS. Also known as a Federal Tax Identification Number, this is used to identify your business. It's free and can be registered online. Most vendors will require that you have an EIN before they'll do business with you.

How you register and where you register your business depends on the laws of your state. To find out what is needed for you to obtain a business license, start with your state's official website where you'll find resources to guide you through the process. For businesses within the city limits, you may need a business license. Contact your county or city clerk's office for information about what you need to start a business.

If you will be buying products to sell you will need a resale license or a certificate. With a resale license, you can buy goods tax exempt from distributors and manufacturers. A resale permit allows you to purchase merchandise at wholesale prices and sell at retail prices to consumers. It may be required by some wholesale suppliers before an account can be established.

When using a name for a business other than your own, there may be additional paperwork to file based on state requirements. This is when you may need to do a business name registration, file a fictitious name application, or register as a DBA. For businesses offering professional services such as a pharmacist, optometrist, hairdresser, or other professions, you may be required to get a state or local occupational license.

You may also be required to obtain a Certificate of Occupancy, which usually requires an inspection by fire, health, building, and sanitation inspectors. Contact your local county or city government business office for information about registering in your state. Without the proper license, you can be fined or your business closed.

If your city requires it, you may need a general business license to operate. Not all localities require it, so it's best to check with your local government agency. You will be responsible for collecting sales tax on any retail items sold and make pay it to the state. If the city or county where your business is located collects additional sales tax, you may need a tax permit.

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A business licence pertains to a permit (metaphorically speaking, a “go signal”) issued by a government agency allowing a certain enterprise in Singapore to undertake the business operations for which it was established.

Different Types of Licences

Compulsory Licence

This is the type of licence which must be procured even before a business can start its business operations. To illustrate, a Child Care Centre licence must first be secured by a childcare centre prior to commencement of operations.

Occupational Licence

This licence is required in the exercise of one’s profession. For instance, accredited professionals like accountants, lawyers, doctors and architects must first procure an occupational licence to be allowed to practice their profession.

Business Activity Based Licences

These are licences that are required only for certain business activities. To illustrate, a convenience store that intends to sell liquor must first secure a liquor licence.

What Business Licence Do I need for my Business?

As a general rule, majority of enterprises can carry out their business operations in Singapore without having to procure a permit or a business licence from governmental agencies, so long as their company registration has been formally filed and approved by ACRA (Accounting and Corporate Regulatory Authority), also known as Singapore’s registrar of companies. There are, however, certain business entities which are subject to more stringent regulations, thus, required to secure State approval in the form of a business licence or permit, prior to commencing their operations.

Here are some industry-specific licences which would require the procurement of a permit from the Singaporean government before the conduct of business:

1. Retail Business

   For retail selling, licence requirements depend on goods or services sold to the public. The following are the required business licences for specific retail businesses:

   • For supermarket retailers, a Supermarket Licence is necessary pursuant to the Environmental Public Health Act. This ensures that handling of food supplies (raw or cooked food) is at par with acceptable food hygiene standards.
   • For telecommunications retailers, secure a Dealer’s Class Licence with the Infocommunications Development Authority of Singapore (IDA), which must be notified of the location of the intended retail outlets to be put up in Singapore.
   • For retailers of Chinese Proprietary Medicine, secure a Wholesale Dealer’s Licence for Chinese Proprietary Medicine (CPM) from the Health Sciences Authority of Singapore (HSA)
   • For retailers of Pharmacy or drugstores, a license in the form of Certificate of registration from the Health Sciences Authority of Singapore (HSA) is necessary.
   • For cosmetic products retailers, secure a cosmetic products Notification from the Health Sciences Authority of Singapore.
   • For retailers of liquors, secure a liquor licence from the Liquors Licensing Board.

2. Food and Beverage Business

   If you are intending to put up a restaurant or any enterprise related to food and beverages, here are the possible licences you might have to procure:

   • For retail of F & B (food and beverage) products, a Food Shop License must be secured from the National Environment Agency (NEA). This is mandated under the Environmental Public Health Act.
   • When importing processed food products and food appliances, an application for Registration Number with the Agri-Food & Veterinary Authority of Singapore (AVA) is required.
   • Liquor license and tobacco license may likewise be required if engaged in the retail sale of those products while undertaking an F&B business.

3. Travel Agency

   If an enterprise falls under the definition of a travel agency designated in Section 4 of the Travel Agents Act (which normally deals with the sale or arranging of tour packages and selling of tickets), a Travel Agent’s Licence must be applied with the Singapore Tourism Board.

4. Child Care Centre

   The agency in charge of overseeing the establishment of child care centres in Singapore is the Early Childhood Development Agency (ECDA). Thus, those entities seeking to establish a child care centre must forthwith file their application for a child care centre license from said agency.

5. Educational institution

   The government has more stringent requirements for businesses setting up an educational institution or providing educational services. This is because there may be one or more licences needed to be procured from different government agencies. For an academic school, registration with the Ministry of Education and Council for Private Education is required. Other recommended certifications are the procurement of EduTrust certifications and Singapore Quality Class (SQC) certifications.

6. Employment Agency

   For enterprises engaged in job placement and recruitment of laborers, obtainment of an Employment Agency License from the Ministry of Manpower (MOM) is imperative.

Why Hire Corporate Services Singapore to Complete your Business License Requirements

Applying for a business license with Singapore’s government agencies can be a complex process if you do not understand the statutory requirements. The timeframe for the completion of the application may take a few days to a few weeks and depending on what business you are intending to put up, you may have to secure different permits from several government agencies, some of which will require you to personally submit your application to their offices. If you do not wish to burden yourself with these regulatory compliances, hire the services of professional incorporation specialists who are well versed in handling business license applications. We can take care of your licence and incorporation needs, that way you can focus on growing your business in Singapore. Talk to us today!

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