How to Start a Trade Business in Singapore

An electrician finishes a repair at 9pm. The customer pays immediately, asks for a receipt and says the office next door also needs help.

The technician sees the obvious opportunity: register a company, hire two workers, buy a van and become a trade-services business.

But the moment the owner starts selling work performed by other people, the business changes. It is no longer only about technical skill. It is about licensing scope, supervision, quotations, scheduling, site safety, insurance, subcontracting, defect liability and collecting enough margin to return when something fails.

This guide covers electrical, air-conditioning and plumbing businesses in Singapore, including when BCA registration matters, WICA insurance and how to use subcontractors without outsourcing responsibility.

There Is No Single “Trade Business Licence”

ACRA registers the business entity. It does not qualify the company or every worker to perform regulated technical work. The required licence depends on the trade, work scope, project role and customer.

Work	Who or what must be qualified	Important distinction
Electrical wiring and installations	EMA Licensed Electrical Worker of the appropriate class	The worker licence is not replaced by an ACRA company registration
Regulated water-service and sanitary plumbing	PUB Licensed Plumber	Simple handyman work is different from regulated plumbing work
External air-con unit installation	BCA-trained air-conditioning unit installer	Structural support installation has specific competency and reporting duties
General building works requiring approved plans	BCA-licensed builder, generally the main contractor	Ordinary subcontract work does not always require a General Builder’s Licence
Public-sector construction tenders	BCA Contractors Registration System firm	CRS is not a blanket licence for every private repair job

Electrical Business: Build Around The LEW Scope

EMA states that all electrical works must be undertaken or carried out by a Licensed Electrical Worker. The three classes are electrician, electrical technician and electrical engineer, with different load and voltage limits.

A licensed electrician may handle specified installations up to 1,000 volts and approved load not exceeding 45 kVA, with additional supervised scope described by EMA. Larger or more complex installations require the appropriate higher class. Do not advertise that “the company is licensed” if the work depends on one individual’s licence without explaining who supervises and certifies it.

Build a system that checks licence validity, work scope, testing, certification and records before dispatch. If the only LEW is unavailable, the company should not quietly send an unlicensed worker to complete regulated work alone.

Plumbing Business: Separate Simple Work From Regulated Work

PUB’s plumbing guidance says regulated water-service and sanitary plumbing works must be carried out by Licensed Plumbers, except identified simple plumbing works that handymen may perform.

Regulated work can include laying, installing, altering, repairing or replacing drinking-water pipes, tanks, taps and fittings, as well as sanitary discharge pipes and appliances. For systems involving pumping equipment or storage tanks, a Professional Engineer may be required for design and supervision. New developments and building works may also require plans by a Qualified Person.

A profitable plumbing company therefore needs a triage script. Ask what failed, where it is, whether pipes or sanitary lines will be altered and whether submissions are likely. Quote only after the job has been classified and assigned to the correct person.

Air-Conditioning Business: Competence Depends On The Work

Routine cleaning, diagnosis, refrigerant work, installation and major mechanical systems are not one activity. Define the exact services the company sells and the competency needed for each.

BCA states that only a trained air-conditioning unit installer may fit units on a building exterior or outward-projecting surface. The installer must use compliant structural supports and submit the required installation report within 14 days. HDB, condominium management and property-owner conditions can add further approval requirements.

For larger commercial air-conditioning, refrigeration and ventilation contracts, customers may require BCA CRS registration under the relevant workhead, specified safety credentials, manufacturer authorisation or project experience. Those commercial requirements should not be presented as a universal government licence for every air-con cleaning business.

When Do You Need A BCA Builder’s Licence?

BCA’s current Builders Licensing Scheme applies to builders carrying out building works where plans require approval by the Commissioner of Building Control and to six categories of specialist building works.

BCA also explains that, for general building works, it is generally the main contractor that needs the General Builder’s Licence. Subcontractors are generally not required to hold that licence unless they undertake one of the specified specialist works. The six specialist categories include piling, ground support and stabilisation, instrumentation and monitoring, structural steelwork, precast concrete and in-situ post-tensioning.

The Contractors Registration System serves a different purpose: registration to tender for public-sector construction projects and, under current rules, to hire foreign construction workers. Do not use “BCA registered” as a vague claim. State the actual scheme, workhead and grade.

Employees, WICA And Workplace Safety

MOM’s WIC insurance rules require employers to insure all employees doing manual work, regardless of salary, and non-manual employees earning S$2,600 or less a month. Electrical, plumbing and air-conditioning field technicians will commonly perform manual work. The obligation applies to local and foreign employees.

WICA covers most employees under a contract of service whether or not insurance was compulsory. A policy is not a substitute for safety. MOM states that employers, self-employed persons, principals, contractors and subcontractors have risk-management duties. Job risk assessments should address electricity, work at height, lifting, sharp tools, confined or wet areas, refrigerants, hot work, access and members of the public.

Budget local payroll accurately, including employer CPF. If the plan depends on foreign workers, check sector eligibility, quota, levy and BCA requirements before promising staffing capacity. SBO’s Work Permit calculator can model headcount scenarios.

Subcontracting Does Not Mean Forgetting The Job

Before appointing a subcontractor	Evidence to keep	Why it matters
Verify licence and scope	Current registry result and named qualified person	Prevents work outside legal competency
Define the work	Written scope, exclusions, drawings and price	Reduces variation and blame disputes
Check safety capability	Risk assessment, training and method statement where relevant	Principals retain WSH duties
Check insurance	Policy schedule and coverage confirmation	A certificate alone may not cover the actual work
Set defect response	Warranty, response time and rectification responsibility	Your customer will call your company first

Use a written subcontract. Prohibit unapproved sub-subcontracting, require valid licences and insurance, define safety and reporting obligations, and reserve a right to reject personnel who are not competent. Inspect the completed work. The main contractor’s brand cannot be subcontracted away.

Also avoid sham self-employment. Calling a full-time controlled worker a subcontractor does not automatically make the relationship a contract for service. Assess the real arrangement and obtain employment advice when unclear.

Price The Return Visit

Trade businesses often price the visible labour and forget dispatch, parking, diagnosis, quotations, parts collection, failed access, callbacks, warranty work and collection risk.

Illustrative S$280 job	Amount
Parts and consumables	(S$65)
Technician employment cost allocation	(S$90)
Vehicle, dispatch and overhead allocation	(S$45)
Warranty and callback reserve	(S$20)
Contribution before tax and owner return	S$60

This is illustrative, not a recommended price. Quote a diagnostic or call-out component transparently, define what parts are included, obtain approval before variations and issue a written service report. A business that underprices the first visit will eventually avoid the second visit, which destroys trust.

Build A Business That Can Dispatch Without Guessing

1. Choose one trade and a narrow starting scope.
2. Map every job type to the required worker licence or competency.
3. Register the ACRA entity and obtain appropriate insurance.
4. Create triage questions, quotation templates and job records.
5. Run risk assessments and safe work procedures for routine and non-routine jobs.
6. Verify employees and subcontractors before they enter the schedule.
7. Track first-time fix rate, callback cost, travel time, margin and collection days.

A trade business becomes valuable when the customer can trust the company, not just one skilled person, to send the right qualified worker and stand behind the work.

Official References

• EMA: Electrician Licence
• PUB: Plumbing works and Licensed Plumbers
• BCA: Builders Licensing Scheme
• BCA: Registration of built-environment firms
• MOM: WSH responsibilities of stakeholders
• MOM: Work injury compensation insurance

Reviewed on 25 July 2026. Licensing and safety requirements depend on the exact technical work, project role, premises and workforce. Verify current requirements with the relevant authority before accepting a job.

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