Doing Business in Singapore
- Singapore
- 02/22/2008
- AbrahamLow LLC
A) Environmental issues on construction and operation of food factory
In Singapore, all meat processing establishments and coldstores must be licensed by the Administration and Compliance Branch, Agri-Food and Veterinary Authority of Singapore (AVA) before they are permitted to carry out any food processing, storage and wholesale distribution and must comply with the Wholesome Meat and Fish Act, Sale of Food Act and the licensing conditions.
Pre Licensing Matters
Premises
Food processing premises and cold stores are preferably located within the area designated as a food zone during land planning. After a site or building is identified, the applicant should check with AVA on the suitability of its location. Site inspection of the proposed premises may be required at this stage. If the site or building is not suitable, applicant will have to source for another location.
Pre License consultation
If the site or building is suitable, processor should submit layout plan(s) and process flow chart(s) to AVA for evaluation. AVA will assess the proposed plans and provide professional advice to the applicant. The premises must be designed in a manner so as to allow one directional flow to prevent cross-contamination between raw and finished products so as to comply with AVA’s food safety requirements.
After the processor has finalized the layout plan(s) with AVA, the processor may proceed to carry out renovation of the premises.
License application process
The processor should formally apply to AVA for a license as soon as the renovation of the premises has been completed.
An applicant should submit a duly completed application form for the License to operate a meat processing establishment or cold store on-line, via, the Online Business Licensing Service (OBLS) together with the supporting documents (eg: proposed layout plan, list of products, process flows). The supporting documents can also be submitted directly to AVA. AVA will contact the applicant to inspect the premises within 7 working days upon receipt of the application. Any shortcomings and appropriate decision will be conveyed verbally to the applicant during site inspection. An official letter will inform the applicant on the outcome of the application. Uncompleted premises would most likely be rejected.
Fees
An application fee of S$157.50 (inclusive of 7% GST) will be levied on any new application made. This application fee will cover the evaluation of floor plans and process flow charts. It will also include a joint site inspection of the completed premises by the Licensing Section with the applicant to ensure compliance with AVA’s requirements before a license is issued.
The annual fees for the following licenses are:
• License to operate a meat processing establishment or cold store - S$260.00
• License to operate a meat processing establishment where meat or fish products in containers are hermetically sealed and thereafter preserved by subjection to heat treatment - S$840.00
Inspection of licensed premises
All licensed food processing premises, cold stores and slaughterhouses would be subject to regular inspections by AVA to ensure that the food produced are safe and fit for human consumption.
AVA conducts regular, scheduled and unannounced inspections at all AVA-licensed food processing establishments and coldstores. The frequency of checks depends on the sanitary conditions of the premises. Areas of checks would include the general cleanliness and hygiene of the premises and workers; documentation and status of rectification of the shortcomings observed in earlier inspection visits. AVA also provides advices on GMPs (Good Manufacturing Practices) and food safety programmes such as HACCP (Hazard Analysis and Critical Control Point). AVA may collect samples from the licensed establishments for laboratory examination.
Under the Wholesome Meat and Fish Act and the Sale of Food Act, AVA has the legal power to take enforcement action against any licensee of food processing establishments and cold stores for violating AVA’s food safety regulations.
Annual Grading Inspection and license renewal
Prior to annual renewal of the license, AVA conducts a grading inspection on the licensed establishment.
Areas of checks cover the following parameters such as:
• Premises - General cleanliness and housekeeping
• Food Storage
• Food Processing Equipment and Facilities
• Food Handling and Facilities
• Product Identification and Transportation
• Food Safety System
• Food Hygiene Training
• Documentation
• Violation Records
AVA uses a checklist to grade the performance of the processing establishments. All food factories in Singapore that are in operation for more than a year are graded by AVA. They are classified into four grades: Grade A (Excellent); Grade B (Good); Grade C (Average) and Grade D (Pass).
One of the main objectives of the system is to assist food factories of lower grades to upgrade and improve on their factory layout and food hygiene practices. This system also allows identification of the lower grade factories so that more regulatory efforts could be directed at them. Grade C and D factories are inspected more frequently than Grade A and B factories.
AVA will follow-up with the licensees in writing on the defects and shortcomings observed during the inspection. A renewal license will be subsequently issued with the grade printed on it.
B) Registration of Business
The applicant is required to register a company, incorporated or registered under the Companies Act (Cap. 50) with the Accounting and Corporate Regulatory Authority (or ACRA), which takes about 3 days. A copy of the original Instant Business Profile from the ACRA must be submitted to AVA when for the application for the license.
C) Tax System
A company, regardless of whether it is a local or a foreign company, will be taxed on its:
• income accruing in or derived from Singapore; or
• income received in Singapore from outside Singapore
Income is assessed on a preceding year basis. This means that the basis period for any Year of Assessment (YA) generally refers to the financial year ending in the year preceding the YA.
A company is taxed at a flat rate of 18% from 2008 onwards on its chargeable income regardless of it being a local or foreign company
There is also a partial tax exemption to companies on its normal chargeable income up to $300,000
D) Incentives and benefits to new industries
Spring Singapore is the lead government agency for enterprise development that aims to enhance the competitiveness of enterprises to develop a strong base of dynamic and innovative Singapore enterprises. They help to nurture a pro-business environment, facilitate the growth of industries and enhance innovation and enterprise capabilities of small and medium enterprises for better access to markets and business opportunities.
They administer many schemes for different industries, purposes and entities, which can be better advised once the clients’ objectives and requirements are known.
