Setting Up a Medical or Dental Clinic Company in Singapore: HCSA Licensing, Ownership and Tax

Short answer: To run a medical or dental clinic through a company in Singapore, you first incorporate a private limited company with ACRA. The company then applies to the Ministry of Health for an Outpatient Medical Service or Outpatient Dental Service licence under the Healthcare Services Act 2020. Before it sees any patients, it must appoint a suitable Principal Officer and an MOH-approved Clinical Governance Officer.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

We have covered the MOH side in our HCSA licensing guide for clinics and health providers. This article is about the business side: how to set up the company that will hold the licence, who can own and run it, and the tax and accounting points that catch new clinic owners out.

Do I need a company to open a clinic in Singapore?

No, but most clinic owners choose one. The HCSA allows an individual, a sole proprietorship, a partnership or a company to be the licensee. A private limited company keeps the clinic’s liabilities separate from the doctor’s personal assets, makes it easier to bring in partners or investors, and is taxed at the corporate rate of 17% after exemptions.

The structure also affects how strict MOH’s governance rules are. MOH’s Code of Practice for Key Office Holders puts licensees into a Basic Tier and an Enhanced Tier. A small company that is exempt from audit, or a larger company with only one director, is in the Basic Tier. A larger company with more than one director moves to the Enhanced Tier. Our guide to choosing a business structure in Singapore compares the options more generally.

Who can own and manage a clinic company?

Under the HCSA, shareholders do not have to be doctors or dentists. What the law controls is the people who run the licensee. Every key office holder must be a suitable person, and the licensee must have the right clinical oversight in place.

Key appointment holders

Section 2 of the Healthcare Services Act 2020 defines the key appointment holders of a company licensee as the members of its board of directors. So every director of your clinic company is a key appointment holder and must meet MOH’s suitability criteria. MOH considers matters such as bankruptcy, convictions for fraud or dishonesty or under healthcare laws, and any previous cancellation or suspension of a professional registration or healthcare licence.

Principal Officer

The Principal Officer is an employee or officer who is involved in the day-to-day management of the licensed service. They must be able to influence staff compliance, have access to the information MOH may require, and be authorised to represent the licensee for the purposes of the Act. In a small clinic, this is usually the lead doctor or the practice manager.

Clinical Governance Officer

Outpatient medical and dental services both need a Clinical Governance Officer (CGO), and MOH must approve the appointment. The CGO is responsible for clinical oversight of the service.

One person can be the director, Principal Officer and CGO at the same time, provided they meet the requirements for each role and have enough time to carry them out. A solo GP setting up their own company often holds all three roles.

Non-doctor investors

A business partner who is not a doctor can be a shareholder and, if suitable, a director. Doctors and dentists remain bound by their professional ethical codes, which deal with matters such as fee-sharing and independence of clinical judgement. Take legal advice on the shareholders’ agreement before you bring in non-clinical investors.

What licence does the clinic company need from MOH?

A GP or specialist clinic needs an Outpatient Medical Service licence. A dental practice needs an Outpatient Dental Service licence. A clinic offering both needs both. Under the HCSA you are licensed by service and by mode of delivery, not just by premises.

There are four modes of service delivery: permanent premises (a physical clinic), temporary premises (such as house calls), conveyance (such as a medical bus) and remote (teleconsultation). Higher-risk procedures, such as endoscopy or liposuction, are “specified services” that need separate MOH approval. It is an offence to offer a specified service without that approval.

The fees above are from MOH’s Outpatient Medical Service page. The dental licence fee is also S$360 for a stand-alone mode of delivery. Licences run for 2 years. Opening a second clinic means applying for a further permanent premises licence.

What is the step-by-step process?

Incorporate first, then line up your key people and premises, then apply to MOH. The licence application is in the company’s name, so the company must exist before you apply.

1. Agree the ownership split and who will be director, Principal Officer and CGO. Check that each person meets MOH’s suitability and qualification criteria.
2. Incorporate the company with ACRA. The Companies Act 1967 requires at least one director who is ordinarily resident in Singapore and a qualified company secretary appointed within 6 months. Choose a company name that avoids the terms MOH restricts. See our step-by-step guide on how to register a company in Singapore.
3. Set up Corppass for the company so it can transact with MOH, IRAS and CPF Board.
4. Secure clinic premises that meet MOH’s licence conditions, and sign the lease in the company’s name.
5. Apply through HALP for the licence, the mode(s) of service delivery, any specified services and the CGO appointment.
6. Prepare for MOH inspection. Put in place the policies the regulations require, including patient health records, price transparency and advertising controls.
7. After approval, open the corporate bank account, register for CPF as an employer, and decide whether to register for GST.

Raffles Corporate Services’ Incorporation Package is S$450, and incorporation is usually completed within 1 business day of receiving complete documents and clearing compliance checks.

Is GST charged on medical and dental services?

Yes, if the clinic company is GST-registered. Singapore does not exempt medical or dental services from GST. The IRAS list of exempt supplies covers financial services, digital payment tokens, residential property and investment precious metals, and nothing else.

A clinic must register for GST once its taxable turnover is more than S$1 million over the past 12 months, or is expected to be over that figure in the next 12 months. Once registered, it charges 9% GST on consultations, procedures and medicines sold, and can claim input tax on its purchases. Many single-doctor clinics stay below the threshold. A busy group practice or aesthetic clinic can reach it quickly, so watch turnover monthly. Our article on compulsory and voluntary GST registration explains the tests.

What accounting and tax points matter for a clinic company?

A clinic company files corporate tax like any other company. But the large set-up costs and the way doctors are paid need careful handling from the first year.

• Start-up tax exemption: a qualifying new company gets a 75% exemption on its first S$100,000 of chargeable income and 50% on the next S$100,000, for its first three Years of Assessment.
• Equipment: medical and dental equipment usually qualifies for capital allowances. Low-value assets of up to S$5,000 each can be written off in one year, up to S$30,000 a year in total.
• Renovation: qualifying renovation and refurbishment costs can be deducted under section 14N of the Income Tax Act 1947, subject to a cap per three-year period. Keep contractor invoices broken down by item.
• Paying doctors: decide early whether doctors are employees (salary and CPF), directors (director’s fees approved by shareholders) or independent locums. Each has different CPF, IR8A and contract consequences.
• Patient billing: reconcile the clinic system, payment terminals and any scheme or insurer claims to the bank every month, or revenue will be misstated.
• Records: MOH sets retention periods for patient health records, and the company must keep its accounting records for 5 years under the Companies Act and the Income Tax Act.
• Data protection: clinics hold sensitive personal data, so appoint a Data Protection Officer as the PDPA requires.

Frequently asked questions

Can a non-doctor own a medical clinic company in Singapore?

The Healthcare Services Act does not require shareholders to be doctors. The company must still appoint a suitable Principal Officer and an MOH-approved Clinical Governance Officer who meets the clinical qualification rules. Every director must also pass MOH’s suitability checks.

Can one doctor be the director, Principal Officer and Clinical Governance Officer?

Yes. MOH allows one person to hold all of these roles if they meet the requirements for each and can give each role enough time and attention.

How long is an HCSA clinic licence valid?

Two years, unless MOH grants a shorter term, for example because of non-compliance. Renewal is no longer tied to an inspection beforehand, but MOH can inspect at renewal and at any other time.

Do I need a new licence if my clinic company opens a second branch?

Yes. Each permanent premises needs its own Outpatient Medical Service or Outpatient Dental Service licence, even when the same company holds both.

Do medical clinics charge GST?

Only if the clinic company is GST-registered. Medical services are not exempt from GST, so a registered clinic charges 9% on its fees. Registration is compulsory once taxable turnover exceeds S$1 million in 12 months.

Does the clinic company need a local director?

Yes. Every Singapore company needs at least one director who is ordinarily resident in Singapore. A foreign doctor-investor without a Singapore-resident director on the board can use a nominee director (from S$2,000 a year plus a S$3,000 refundable deposit at Raffles Corporate Services). The CGO must also reside in Singapore.

Last reviewed: 4 October 2026. The Editorial Team, Raffles Corporate Services.