If you’ve started digging into running a small business from your HDB flat or condo, you’ve probably bumped into two government schemes that sound almost identical: the Home Office Scheme (HOS) and the Home-Based Business Scheme (HBS). Here’s the good news — they’re not the same thing wearing two names, and picking the right one can save you paperwork, a $20 fee, or both.
The one-line version: HBS needs zero government registration and zero fee — but it’s built for hands-on work like baking or tuition. HOS costs a token $20 and needs a quick Singpass registration[1] — but in exchange you can hire up to 2 non-resident employees and run admin-style work like consultancy or design.
So which one is which?
🧁 Home-Based Business Scheme (HBS)
For hands-on work — baking, home beauty (no massage), sewing, small tuition. Zero registration, zero fee.
💻 Home Office Scheme (HOS)
For desk-based work — consultancy, IT, design, trading. $20 fee, quick Singpass registration, up to 2 non-resident hires.
Think of HBS as the scheme for founders whose “office” is really a kitchen counter or a sewing table — baking, home beauty services (no massage), tailoring, and small tuition setups (capped at 3 students) all fall under it, and URA confirms there’s genuinely no registration or approval step at all[1]. HOS, on the other hand, is aimed at people doing desk-based work — bookkeeping, IT freelancing, trading, consultancy — and while it’s still simple, it does require a quick self-registration through Singpass and a $20 fee, approved almost instantly[1].
| Factor | Home Office Scheme (HOS) | Home-Based Business Scheme (HBS) |
|---|---|---|
| Best suited for | Admin/desk work — consultancy, accounting, IT, design, trading | Hands-on work — baking, beauty (no massage), sewing, tuition (≤3 students) |
| Registration needed? | Yes — self-register via Singpass, $20 fee, near-instant approval | None — no HDB/URA sign-up required |
| Non-resident employees | Up to 2 allowed | None — owners/residents only |
| Property types | HDB flats and private property | HDB flats and private property |
| Walk-in clients / signage | Not allowed | Not allowed |
🏙️ The part both schemes don’t solve for you
Here’s the catch that trips up a lot of first-time founders: picking HOS or HBS doesn’t replace ACRA registration — it’s still a mandatory, separate step. ACRA requires you to register any business carried out for profit on a regular basis (home-based businesses under a brand name, like “Cakes by Mei Ling,” included) — the only narrow exemption is trading strictly under your own full NRIC name[3]. So whichever address you use for that ACRA filing (your home address, under either HOS or HBS) becomes publicly searchable on ACRA’s business register. Even once you’ve picked the right scheme and handled ACRA registration properly, your home address is still out there for anyone to look up.
If that’s a dealbreaker — and for most people running a business from home, it eventually is — a virtual office address lets you register your company with a professional, non-residential address on public record while you keep working from your kitchen table under HBS, or your home desk under HOS. You get the low-cost, flexible setup both schemes are designed for, minus the privacy trade-off.
Need a hand sorting out which scheme fits your setup, or want your business registered under a proper address instead of your home? Lionsworld’s LI team handles ACRA company registration and corporate secretarial compliance end-to-end, and LBC-SG can set you up with a virtual office address in a matter of days — so your home stays private and your business still looks the part.
Sources:
[1] URA, “Guidelines for Home Office / Home-Based Business Scheme” (updated 23 Jun 2026) — ura.gov.sg
[2] HDB, Home Office Scheme guidelines (updated 23 Jun 2026) — hdb.gov.sg
[3] ACRA, “Registering a Business — Requirements & Eligibility” (last updated 29 Jan 2026) — acra.gov.sg
GoBusiness Licensing e-Adviser — gobusiness.gov.sg