What is the difference between Home Office Scheme and Home-Based Business Scheme

Home Office Scheme

The Home Office Scheme permits homeowners, registered occupants, or tenants of HDB flats to operate small-scale offices from their residences, following the current usage guidelines.

You are allowed to use your flat for administrative business operations and employ up to two non-resident staff.

The flat must continue to be primarily used as a residence, with all business activities conducted within the flat and without causing any disturbance to neighbours.

Home Office Scheme: Usage Regulations

Business activities conducted under the Home Office Scheme must be administrative only. All other business operations should take place elsewhere, and clients or customers are not permitted to visit the flat.

Examples of Permitted Businesses

1. Accountancy services
2. Architectural services
3. Consultancy services (business, engineering, IT, management or education)
4. Design/Advertising services
5. Insurance/Financial planning services
6. Real estate agencies
7. Technology based and knowledge intensive businesses
8. Trading office (excluding car trading office)

Examples of Non-Permitted Businesses

1. Beauty, hair dressing or massage therapy services
2. Contractors Business
3. Car trading business
4. Card reading/palm reading or fortune telling in any form
5. Commercial school (e.g. dance, music, language, tuition centre, etc.)
6. Courier business
7. Classes on dress-making/embroidery
8. Clinics and pharmacies (e.g. dental, medical, veterinary, ophthamology, etc.)
9. Food catering/restaurants
10. Funeral chapels or homes
11. Maid/employment agency
12. Manufacturing, preparation of processing of ANY products and goods
13. Mausoleums
14. Money lending business
15. Repair activities (e.g. household appliances, electrical products, footwear, etc.)
16. Sales/marketing that involves conducting seminars and talks for large number of customers
17. Shops and any form of retail activity, including pet shops
18.  Societies/clubs/associations

Home Office Scheme: Application and Management of License

You must apply for a Home Office Licence to use your flat under the Home Office Scheme. The licence remains valid for the entire duration of your home office business but may be revoked if you violate its conditions.

Visit GoBusiness Singapore to apply for the Home Office Licence. A non-refundable administrative fee of $20 applies. Please have the following ready:

• Singpass
• Credit card (Visa or Mastercard) for payment

You will receive an acknowledgment at the email address you provide upon completing the application.

If you wish to engage us as a Third Party Filer to apply, we will require:

• Your NRIC number
• A Letter of Authorisation from you
• The Third Party Filer’s Singpass
• A credit card (Visa or MasterCard) for payment

If there are any changes to your business activities, you must:

• Ensure the business continues to comply with the Home Office Scheme’s usage regulations
• Inform the Accounting and Corporate Regulatory Authority (ACRA) of the changes

Home-Based Business Scheme

You can engage in small-scale home-based business activities to supplement your income without needing HDB approval.

Your flat must primarily remain a residence, and the business activities must not create any disturbances for your neighbors. If they do, you must either stop the business or move it to a commercial location.

Home-Based Business Scheme: Usage Regulations

 1. The business must be run by the flat’s owners, registered occupants, or tenants (with the owners’ consent). Third parties and non-resident employees are not permitted to work in the flat.

2. No advertisements, signage, or posters should be displayed at the flat.

3. There should be no additional traffic introduced to the site, and the business must not negatively impact the neighborhood or living environment, including noise, smoke, smell, litter, effluent, dust nuisances, or pose any danger to surrounding residents.

4. Heavy equipment or appliances not intended for domestic use are prohibited.

5. Large-scale storage or frequent loading and unloading of goods, especially bulky items, and using the flat as a distribution center are not allowed.

6. All activities must comply with the rules and regulations of other authorities, such as the Singapore Food Agency for food safety and hygiene, and the Fire Safety and Shelter Department for fire safety requirements.

Examples of Permitted Home-Based Business Activities:

a) Small-scale food businesses such as baking

b) Hairdressing, facial, beauty services (excluding massage), manicure, or pedicure services

c) Private tuition for a maximum of three students at a time

d) Sewing services

e) Freelance work as an artist, journalist, photographer, or writer

Note: Massage services are prohibited in residential premises.