Starting a Real Estate Agency Business in Singapore
When it comes to the fastest growing economies in Asia, Singapore is one name that keeps consistently coming out on top. The Real Estate Agency Business property market in Singapore especially has a robust demand for both commercial and residential properties. Is this good news?
It certainly is, if you are thinking of venturing into the real estate business and looking to start a real estate agency business in Singapore. Singapore is a business and financial hub that has caught the eye of many entrepreneurs from around the world, and with its strong economy, real estate pieces are quickly being snapped up. As a result, the real estate business sector in Singapore has quickly emerged as a lucrative business proposition for entrepreneurs who are looking to get into the real estate game.
How to Start a Real Estate Agency Business in Singapore
The first thing you would need to do if you are planning on starting a real estate agency business in Singapore is to acquire a license from the Council of Estate Agencies (CEA). This is a requirement under the current legislation, and a real estate agency business in Singapore cannot commence business operations without first obtaining this license.
What Requirements Need to be Fulfilled to Set Up a Real Estate Agency Business in Singapore
The Estate Agents Act in Singapore requires that all real estate agencies must be licensed by the CEA, and this is applicable for all real estate agency work in Singapore which is carried out by either foreign or local properties. All individuals who are employed in real estate agencies will also be required to register themselves with the CEA via the real estate company they are employed at.
To apply for a license with the CEA, all real estate agencies will be required to fulfil the following conditions:
- The real estate agency business must be registered with the Accounting and Corporate Regulatory Authority of Singapore (ACRA).
- The company must be registered as either a Private Limited Company, Sole-Proprietorship or Partnership.
The business must have a Key Executive Officer (KEO) appointed who is not declared bankrupt, must not be dishonest, nor should they have been convicted of fraud. They must also not be in breach of any fiduciary duties in any country. The KEO must also not have been in detention or police supervision in the past. Additionally, the KEO will be required to fulfil the following conditions:
- Minimum 4 GCEO “O” Levels passed
- Successfully passed the Common Examination for House Agents (CEHA) or
- Successfully passed the Real Estate Agency (REA) exam or equivalent
- Must not be registered with any other existing real estate agency
- Hold at least 3 years of working experience under a licensed real-estate agency in Singapore
- Be either a director, partner or sole-proprietor of the estate agency
- Must have completed at least 30 property transactions within the past 3 years operating in Singapore
- Must have sufficient experience when it comes to managing the business of an estate agent
- Must not have previously been a sole-proprietor, director, partner or KEO of a real estate agency that has previously had its licensed revoked.
How to Apply for a Real Estate Agency License
The following documentation must be submitted to the CEA for the application of your real estate agency business license in Singapore:
- A copy of your company’s business profile which has been obtained from ACRA for a nominal fee.
- Name of business which has been registered with ACRA
- Copy of cover note or policy schedule
- Business registration number
- Details of KEO, sole-proprietors, directors or shareholders
- Details of your lease and sale transactions which have been concluded in the last 3-years.
The application for the license must be submitted by the KEO, and an email notification will be sent when the application has been approved.
If you are interested to start a real estate agency business in Singapore, read more from local corporate service provider in Singapore who can assist you along the way.