How much and what do I need to operate an online bakery from home? Can I work within my HDB flat? Do I need any license and do I need to register with Acra as a small home based family business? And how about insurance? - Seedly
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Anonymous

Asked on 17 May 2019

How much and what do I need to operate an online bakery from home? Can I work within my HDB flat? Do I need any license and do I need to register with Acra as a small home based family business? And how about insurance?

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Guo Hao Teo
Guo Hao Teo, Self-Taught Enthusiast at Personal Finance
Level 6. Master
Updated on 09 Jun 2019

You can try using Carousell? Start from there.

It’s possible to actually find a ton of home bakers there selling their home made cakes and produce. Do check it out!

I think until it becomes bigger, then you should consider getting the relevant licenses and filing with ARCA.

Because administration can be a hassle.

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Heng Kai Le
Heng Kai Le

09 Jun 2019

Indeed. aim big, start small
Question Poster

09 Jun 2019

Thank you for sharing, I'm starting small. I do not know much now but hopefully I will learn along the way.
N
Nathaniel
Level 4. Prodigy
Updated 3w ago

Equipment

1. Oven: Starts from $500

Get a good but affordable oven if you're just starting out. You don't need to spend a lot. This one from Electrolux is a good starting point: https://www.lazada.sg/products/electrolux-eob2200box-built-in-oven-i242640457-s1231978038.html?

You can begin considering purchasing a commercial-grade oven when your business grows and you need to scale up operations.

2. Misc. Baking Equipment: $200-$300

Useful list of baking equipment: https://shopee.sg/blog/useful-baking-equipment-tools-singapore/

You'll need whisks, baking trays, silicone baking sheets, mixers, etc.

Legal Compliance

Home bakeries are allowed under the Home-Based Business Scheme. You can certainly work within your HDB flat. Home bakers should carefully read the rules of the Scheme. See this helpful legal guide: https://singaporelegaladvice.com/law-articles/home-baked-goods-licence-singapore

Summary of guide from Singapore Legal Advice:

  1. You can't sell your baked goods at food stalls/stations/fairs, and you can't sell them at food establishments.

  2. You can't register your HDB flat as your business address.

  3. You can't load or unload your baked goods onto trucks, which means you can't produce baked goods in bulk.

  4. You can't buy paid ads for your baked goods (so no Google or Youtube paid ads, for instance). You can, however, share your baked goods on social media posts.

  5. You can't recruit staff that are not household members.

Licensing:

You don't need a license to operate a home bakery business under the Home-Based Small Business Scheme. You also don't need approval from HDB. See: https://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/home-business/home-based-small-scale-business-scheme

The Singapore Food Agency has guidelines for home bakeries: https://www.sfa.gov.sg/docs/default-source/food-retailing/sfa-good-food-hygiene-tips-for-residents-preparing-food-under-hdb-ura-guidelines.pdf

Insurance:

You'll need a liability policy in case your customers get sick after eating your baked goods. You can get online liability insurance quotes at https://www.providecover.com/​​​

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N
Ninja
Level 6. Master
Answered on 16 Feb 2020

Best is check the law. You don’t want someone to sue you and you lost your house. In the case of food poisoning of course.

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Heng Kai Le
Heng Kai Le, Mondomover at School Of Life
Level 5. Genius
Answered on 09 Jun 2019

Just to add on, why not start a FB or IG page that creates awareness of your baking and provides you a platform for you to consolidate your orders and offer special discounts, etc?

this is the FB page regarding the best pineapple tarts i have ever tasted in my life:

https://www.facebook.com/Onglaipia1980/

every year, the lady quits her job to concentrate full-time on making these scrumptious pineapple tarts

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Png Cheng Xi Damien
Png Cheng Xi Damien, Happy Life Seeker at Home
Level 6. Master
Answered on 17 May 2019

I think you should look at hdb website and acra website for these info. It's all there.

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