Guide to starting your home-based small-scale business in 2026

All about the Home-Based Business Scheme

The Home-Based Business Scheme allows aspiring entrepreneurs in Singapore to carry out small-scale home-based business activities in order to supplement their household income. 

One of the biggest benefits of this scheme is that you don't need a license or approval from HDB or URA in order to operate. However, there are still several guidelines to adhere to.

Guidelines and regulations under the home-based business scheme (Updated 2026)

If you are thinking of starting a small business from home, here is some good news: you do not need URA approval as long as what you are doing stays low-key and your home continues to be used mainly as a place to live.

That said, you are expected to be considerate of your neighbours. If the business becomes inconvenient or no longer meets the guidelines, you will need to stop operating from home or move to a commercial space.

What you can and cannot do from home

To keep things simple, here is what you need to keep in mind:

• You can only run the business yourself or with other registered occupants or tenants of the home (with the owner's consent).
• You cannot let outsiders operate the business, nor can you hire non-resident employees to work from your home.
• You should not put up any ads, signboards, or posters at your residence.
• Stick to regular household equipment. Heavy machinery or industrial tools are not allowed.
• Your home cannot turn into a warehouse. Large storage, bulk deliveries, or frequent loading and unloading are not permitted.
• You must make sure your business follows rules set by other authorities too, such as food safety, hygiene, or fire safety requirements, if they apply to what you do.

Examples of businesses you can run from home

If you are wondering what usually works, these are commonly allowed:

• Small-scale food businesses like home baking
• Hair, beauty, manicure, or pedicure services (massage is not allowed)
• Private tuition, as long as you teach no more than three students at a time
• Sewing or tailoring services
• Freelance work such as art, writing, journalism, or photography

Home-based business ideas

1. Sell your service or expertise

If there is a specific skill or profession that you specialise in, you may be able to monetise it and turn it into a home-based business. This idea is great for professionals in the creative and education industries, or simply any sector that can provide a specific service for their customers. For individuals who wish to make the shift from a corporate job to becoming their own boss, selling their services or expertise can be a great way to start.

Examples of service-driven home-based business ideas include:

• Freelance writing
• Graphic design
• Marketing
• Virtual assistance
• Online tutoring
• Personal training
• Dog-walking  

2. Productise your service or expertise

This idea works best for those who wish to take it to the next level and go beyond just selling their services and skills. In a nutshell, productising your service or skills involves creating physical or digital products that package your area of specialisation and complement the services you already offer.

Instead of just writing an article as a freelance writer, you have also designed courses and guides that you can sell in order to teach people how to become freelance writers as well. 

Other ideas for adding products to your service-based business include:

• Design guides
• Short courses
• seminars/webinars
• Licensable assets (e.g. stock footage, royalty-free music, etc.)
• Digital design templates and mock-ups
• e-Books

Since this can be done digitally, this is suitable for people who do not have sufficient space in their homes to stock inventory.

3. Creating handmade goods

If you don't have a specific skill set to monetise, why not create handmade goods? Whether it's baked goods, customised artwork, or scented candles, making your own products is a great home-based business idea that almost anyone can do. Not only will you be making a profit out of your business, but you will be able to tap into your creative side as well.

One area to consider is the amount of space you will need in your home to accommodate all your logistical needs. Make sure you have enough space in your house for the equipment and tools you will need for your home-based business.

4. Start a dropshipping business

For those who don't want to go through the process of making a product from scratch, try starting a dropshipping or reselling business. A dropshipping business or store is an order fulfilment method that does not require a business to keep products in stock. A third-party supplier produces, stores, and ships your products on your behalf, leaving you with the menial tasks such as marketing and customer service.

Businesses that adopt a dropshipping model can reach out to suppliers locally or overseas. But before signing any agreement, ensure the suppliers are reliable and legitimate, and will not jeopardise your business.

5. Coaching and consulting services

If you have experience in a specific field, you can package your knowledge into one-on-one or group coaching. This is slightly different from general freelancing because it focuses on guidance, strategy, and outcomes rather than execution.

Examples include:

• Career or leadership coaching
• Fitness or nutrition coaching (online)
• Business or startup consulting
• Financial literacy coaching
• Exam or admissions coaching

Most sessions can be conducted online, which keeps the business compliant and neighbour-friendly.

6. Rental-based micro businesses

If you already own certain assets, you can monetise them without creating or selling products.

Examples include:

• Renting photography or videography equipment
• Renting party or decor items
• Renting tools or hobby equipment

This works best when storage is manageable and customer visits are limited.

Next steps for your home-based small-scale business

Once you have finally decided to start your home-based small-scale business, begin planning everything you will need, including tools and equipment, workspace, marketing, bookkeeping, and business banking. To get started, you would need to register your company and open a business account.