Beginner’s Guide on Starting a Spices Business in Singapore
The chaining value in starting a spices business sector stretches from the main production to international trade across the world. It has been relevant for thousands of years—used in preserving and flavouring food, medicine, and perfume cosmetics. Furthermore, starting a spices business is a lucrative trade experience with a small-medium scale investment. It is sought after by the global community on a daily basis, proving to be relatively recession-proof.
Although having a spices business would bring you long-term success, the overall business formation procedure in Singapore may draw you physical efforts and a lot of formation fees. Not to mention the number of approval documents and registration processes you need to comply with. It may divert your focus from prospecting the details of your firm to the administrative nature of it.
Hence, it would be best to seek assistance from experts in company incorporation that would ensure you’re compliant with the statutory requirements for your spices business.
What is the Spices Business?
Technically, starting a spices business is under the category of seasoning, sauce, and condiment production and manufacturing industry. They offer a wide variety of dried ingredients to wholesalers, food manufacturers, restaurants, supermarkets, food stalls, regular shops, and other sectors that involve seasonings and blends within their products and services.
According to Entrepreneur.com, the average startup cost of starting a spices business is between $2,000 and $10,000. This type of business could be operated within homes to reduce expenses. Though most business starters contact their local corporate service provider in Singapore to manage their save costs.
You could make your own recipes, label them with names, and bottle them with your business logo on them. You could start by making small batches of your homemade seasoning blends and sell them to your friends, family, or anyone in the residential area. Know what they think of your product and gain some helpful information from it.
Fresh VS Dried Spices
Locally grown spices are most preferred by professional chefs and home cooks, incorporating the idea of fresher and healthier ingredients in the cooking process. Most spices are better when fresh since it preserves their flavors; most commonly on delicate herbs like parsley, chives, cilantro, rosemary, thyme, and bay leaves. If you have a garden near your area, then we recommend growing on your own rather than buying in bulk.
Though it’s true that fresh spices have popping flavors to dishes, some seasonings work better when they are dried. There are instances that dried and powdered spices have primer results. Among these seasoning blends are turmeric, garlic powder, cinnamon, ginger ground, onion powder, and lemon peel powder. They have high antioxidant concentrations and are likely to provide a more seasoned dish.
Preserving Spices Freshness and Flavors
Spices start to lose their flavour and freshness faster when not stored properly. Ground spices could last up to 6 months, while whole spices could preserve their freshness for two years. Hence, it would be best to keep spices away from heat and light, most recommended on amber glass with air-tight lids and containers. You could also preserve them in sealer bags to maintain their flavours. This would boost your spice quality while preventing it from going to waste.
Essential Tools Needed in Starting a Spices Business in Singapore
Apart from the raw spices and basic packaging materials you need for your spices business, some equipment could be used for a faster and more secure spice powder process. You may need a grinding machine, impact pulverizer, pounding machine, compressor, spice grinder, weighing scale, and mills. You could only purchase the ones that fit the products you plan to sell.
Spices Production and Marketing
The spices sector is growing continually. Unlike other businesses that may come off seasonal, its position in the market is constant—leveraging its demand scale while creating new channels. According to Market Research, Singaporean seasonings had a total of $101.7m in revenue in 2018, representing an annual growth of 4% in the preceding years.
Hence, entrepreneurs who are keenly interested in starting a spices business may venture into the industry at any time. Aside from domestic consumption, you could cater to global demand since Asia is known for the spices market. Firm economic growth and high consumer purchase would contribute to your success.
At the same time, the initial investment can be relatively low, depending on the range and levels of production you plan to operate. Your expenses might include storage rooms, equipment, marketing costs, and employee salaries.
Spices Business Registration Process in SG
Among the benefits of registering your company with the Accounting and Corporate Regulatory Authority (ACRA) is the legal attainment as well as access to governmental funding. Potential clients could also easily verify your firm, which increases credence. Hence, you’re allowed to participate in governmental tenders with rights in intellectual property.
Here is a standard registration business guide in SG.
- Ensure that your business name is unique and available as a domain name. However, you would have to follow some naming rules in accordance with your business structure.
- Select the right business structure that suits your operation. Among the common types are sole proprietorship, limited liability company (LLC), partnership, and corporation. Consider your liability protection and taxation benefits when choosing one.
- Appoint officers in your company: directors, secretaries, and other key personnel. You must include their identification details and contact information.
- Indicate the issued capital for at least $1. You could choose between ordinary shares (with voting rights) or preference shares (with respect to dividend distributions).
- Provide the details of your physical address where you must keep all the business records safe. This is also where ACRA would issue your incorporation documents.
- Prepare all your financial attributes. Open a dedicated business bank account and credit cards to separate from personal liability.
Although the process of company registration in Singapore appears direct and doable, many business people seek company incorporation services for a cost-effective procedure. It allows them to concentrate on building their business as corporate services take care of their administrative compliance and statutory documents. Adding the fact that each establishment may have additional prerequisites depending on its scale and location.
Licenses and Permits Needed in Starting a Spices Business
There is no specific license that directs you to sell spices. But there are regulations you should consider since it involves consumable products. According to the Singapore Food Agency (SFA), conditions are set to minimize inconvenience and risk to food establishments. Here are some that relatively apply to your spices business:
- Construction materials must not transmit any undesirable substances to the spices
- Facilities must have no or minimal entry to pests, rodents, and contaminants
- Ensure to facilitate hygienic operations and appropriate temperature when packing the spices
- There should be labelled storage to distinguish dry spices, raw materials, fresh ingredients, etc
- Surfaces that are in contact with the spices must be non-toxic
You might also want to check on the Code of Practice on Environmental Health (COPEH) to comply with safety and environmental concerns. But it would be best to contact your local board of health for specific-state permits and approval documents for added services. Some areas require facilities with specific regulations.
Consider having certifications that would help you gain more understanding of spices and seasonings. You could study courses like food science, technology and other related fields by any means to benefit the nature of your work. Customers want to purchase products from business people who really know what they’re trying to sell.
If you still have questions about incorporating and managing your spices company, feel free to contact 3E accounting, and we will assist you with all your business needs. We’re a team of experts in this scale, offering a one-stop solution service. Expect a professional yet economical fee.