🇸🇬 Country hub · reviewed 2026-10-09

Franchising in Singapore: the 2027 guide for foreign franchisors

Singapore has no franchise law, no registration and no disclosure filing. What shapes a franchise here is company law, the food licence, a cap on foreign workers in food service, and a 10% withholding tax on royalties with tight deadlines.

Singapore at a glance

Franchise statute: None. General contract and commercial law Secondary · Pinsent Masons, Operating a franchise in Singapore, 2025-10-16
Foreign ownership: 100% allowed; one locally resident director Official · ACRA, company directors
F&B licence: SFA Food Shop Licence, S$195 a year Official · Singapore Food Agency, food retail licences
Foreign workforce cap, services: 35% (S Pass 10%) Official · Ministry of Manpower, foreign worker quota
Royalty withholding tax: 10%, due by the 15th of the second month Official · IRAS, payments subject to withholding tax
GST: 9% since 1 January 2024 Official · IRAS, GST rate change

Guides for Singapore

Franchise law and registration in SingaporeSingapore has no franchise statute: which laws apply, the pyramid-selling exclusion for master franchises, competition law and restraint-of-trade rules.Can foreigners own a business or franchise in Singapore?Setting up a franchise operator in Singapore: 100% foreign ownership, the resident-director rule, SFA food shop licence and foreign workforce quotas.Trademarks and IP for franchisors in SingaporeProtecting a franchise brand in Singapore: IPOS registration on intent to use, optional licence registration and its effect, and licensee rights.Tax on royalties and franchise fees in SingaporeSingapore tax on franchise royalties paid abroad: 10% withholding, filing deadline and late penalties, treaty relief, and when GST reverse charge applies.Finding a master franchisee in SingaporeHow to find and vet a master franchisee in Singapore: FLAsia, the pyramid-selling exclusion for sub-franchising, and a vetting checklist.

How Singapore compares

Singapore: No statute. General contract and commercial law apply, including the Competition Act 2004 and the Trade Marks Act 1998, plus a voluntary Code of Ethics for members of the Franchising and Licensing Association. Compare it with Vietnam, Indonesia, Malaysia, Thailand, Philippines and Cambodia in the ASEAN franchise law comparator.

Frequently asked questions

Is there a franchise law in Singapore?

No. Singapore has no franchise statute, no franchise registration and no mandatory disclosure, cooling-off period or minimum term. General contract and commercial law apply, and members of the Franchising and Licensing Association follow its voluntary Code of Ethics.

Can a foreigner own 100% of a franchise business in Singapore?

Yes. A foreign individual or company can own all the shares of a Singapore private company, with share capital from S$1. The company must have at least one director who is ordinarily resident in Singapore.

What licence does a franchised restaurant need in Singapore?

A Food Shop Licence from the Singapore Food Agency, applied for through GoBusiness before opening. It costs S$195 and lasts one year.

How much tax is withheld on franchise royalties paid from Singapore?

10% withholding tax, or a lower treaty rate. The payer files and pays by the 15th of the second month after payment; late payment costs 5%, rising by 1% a month after 30 days up to 15%.

Does a Singapore franchisee pay GST on royalties to a foreign franchisor?

Usually not through reverse charge. Reverse charge on imported services applies only to GST-registered businesses that cannot claim full input tax credit. A typical fully taxable food franchisee is not caught. The GST rate is 9%.

Looking for a partner in Singapore?

Master and area rights open in Singapore are listed on the FranX Rights Board. Operating stores for sale are on Resales.