How to Start a Watch Dealing Business in Singapore: Complete Licensing & Registration Guide

Starting a watch dealing business in Singapore means navigating ACRA company registration, the Secondhand Goods Dealer Licence if you're buying pre-owned, PSPM registration if you're dealing in precious metals, plus GST obligations once you hit S$1 million turnover. This guide walks you through everything — from incorporation to opening day.

Business Structure: What Type of Company?

For watch dealing in Singapore, the most common structures are:

Structure	Best For	Liability
Sole Proprietorship	Solo operators, minimal setup	Unlimited personal liability
Partnership	Two or more partners	Unlimited personal liability
Private Limited (Pte Ltd)	Serious operations, growth plans	Limited to paid-up capital

For most watch dealers — especially those holding significant inventory — Pte Ltd is the recommended structure. Limited liability protects your personal assets if something goes wrong.

Step 1: ACRA Company Registration

All businesses in Singapore must register with the Accounting and Corporate Regulatory Authority (ACRA).

Requirements for Pte Ltd

• At least one shareholder (can be individual or corporate, local or foreign)
• At least one local director (Singapore citizen, PR, or EntrePass holder)
• Company secretary — must appoint within 6 months of incorporation
• Registered office address in Singapore
• Minimum paid-up capital: S$1 (but practical considerations require more)

Registration Fees

Item	Fee
Name application	S$15
Company registration	S$300
Sole proprietorship/partnership	S$100

Process

1. Reserve company name via BizFile+ (approved within 1 working day usually)
2. Prepare incorporation documents
3. Submit via BizFile+
4. Receive Certificate of Incorporation (1-2 days if straightforward)

Name reservation is valid for 120 days — complete registration within this period.

2025 Regulatory Updates

• Corporate Service Providers Act 2024 (effective 9 June 2025) — new companies must maintain beneficial ownership registers from incorporation
• Stricter KYC requirements for company formation

Step 2: Secondhand Goods Dealer Licence (If Applicable)

If you're buying and selling pre-owned watches, you need a Secondhand Goods Dealer Licence from the Singapore Police Force.

Who Needs This Licence?

• Dealers buying secondhand watches from the public
• Consignment businesses
• Trade-in operations
• Pre-owned watch retailers

Licence Fees

Licence Type	Fee
1-year licence	S$165
2-year licence	S$280
Temporary licence (14 days)	S$40

Requirements

• Apply via GoBusiness Licensing
• Background checks on applicants
• Premises inspection may be required
• Processing time: Approximately 3 weeks

SHOTS Reporting

Licensed dealers must report all secondhand goods transactions through the Secondhand Goods Online Transactions System (SHOTS). This helps police track stolen goods.

Step 3: PSPM Registration (If Applicable)

If your watches contain precious metals or stones (gold cases, diamond bezels, etc.) and you conduct transactions of S$20,000 or more, you need to register under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act.

Who Must Register?

• Watch dealers selling precious metal watches (gold, platinum)
• Dealers handling diamond-set timepieces
• Anyone conducting regulated dealing in precious products above S$20,000

Registration Tiers

Class	Application Fee	Annual Fee (per outlet)
Class A (cash below S$20K)	S$120	S$250
Class B (cash S$20K+)	S$120	S$350

AML/CFT Obligations

PSPM registration brings AML/CFT compliance obligations:

• Customer Due Diligence (CDD)
• Cash Transaction Reports (CTR) for S$20,000+ cash deals
• Suspicious Transaction Reports (STR)
• Semi-annual returns via myPal

Step 4: Secure Business Premises

Your premises must be approved for retail use.

URA Considerations

• Check approved use class via URA SPACE
• Watch retail typically falls under Class 1: Shop
• Change of use application: S$500 (if needed)
• Processing: ~10 working days

HDB Commercial Units

If leasing from HDB:

• Apply through HDB Place2Lease
• Obtain HDB consent for your trade type
• Comply with lease terms and conditions

Renovation Requirements

• BCA approval for structural alterations
• Fire safety compliance (FSSD)
• Signage licence from BCA for external signs
• Engage Qualified Person for building works submissions

Step 5: GST Registration

Goods and Services Tax registration depends on your turnover.

Compulsory Registration

You must register for GST if:

• Taxable turnover exceeded S$1 million in the past 12 months, OR
• Expected to exceed S$1 million in the next 12 months

Registration Timeline

Apply within 30 days of exceeding (or expecting to exceed) the threshold.

Current GST Rate

9% (as of 2024)

Voluntary Registration

Even below S$1 million, you can voluntarily register — useful if your customers are GST-registered businesses. However, you must remain registered for minimum 2 years.

Filing Requirements

• Quarterly GST returns (standard)
• Monthly or semi-annual options available

Step 6: Insurance Coverage

Watch dealing involves significant inventory value. Protect it.

Essential Coverage

• Stock/inventory insurance — covers your watches against theft, fire, damage
• Consignment coverage — if you hold customer watches for sale
• Transit insurance — for watches in transport
• Public liability — customer injuries on premises

Jewellers Block Insurance

For comprehensive coverage specifically designed for watch and jewellery dealers, jewellers block insurance covers:

• Your owned inventory
• Customer consigned goods
• Goods in transit
• Items at trade shows or off-premises

This isn't optional — a single theft could wipe out your entire business without proper coverage.

Step 7: Security Infrastructure

Watch dealers are high-value targets. Implement proper security.

Physical Security

• Safe/vault for overnight storage
• Display case security — locks, alarms
• Reinforced doors and windows

Electronic Security

• CCTV system with adequate retention
• Alarm system with 24/7 monitoring
• Access control for restricted areas

For detailed security guidance, see our dealer security guide.

Startup Timeline

Step	Timeline
ACRA company registration	1-2 days
Secondhand Goods Dealer Licence	~3 weeks
PSPM registration	2-4 weeks
Secure premises	2-8 weeks
URA/HDB approvals (if needed)	2-4 weeks
Renovation and fit-out	4-8 weeks
Security installation	1-2 weeks
Insurance arrangement	1-2 weeks
Total	2-4 months

Estimated Startup Costs

Item	Estimated Cost
ACRA registration	S$315
Company secretary (annual)	S$300-800
Secondhand Goods Dealer Licence (2-year)	S$280
PSPM registration + annual fee	S$470 (Class B)
Premises deposit & rent (3 months)	S$15,000-50,000
Renovation and fit-out	S$30,000-100,000
Security systems (safe, CCTV, alarm)	S$10,000-30,000
Initial inventory	S$100,000+
Insurance (annual)	S$5,000-20,000
Estimated Total	S$170,000-300,000+

Excludes inventory costs, which vary widely based on your business model.

Ongoing Compliance

Annual Requirements

• ACRA annual return filing
• Financial statements (audited if required)
• Secondhand Goods Dealer Licence renewal
• PSPM registration renewal
• Insurance renewal

Periodic Requirements

• GST returns (quarterly)
• PSPM semi-annual returns via myPal (if registered)
• SHOTS transaction reporting (ongoing)

As-Needed

• CTR filing for cash transactions S$20,000+
• STR filing for suspicious transactions
• CDD documentation for regulated transactions

Common Mistakes to Avoid

1. Operating without SHGD licence — if buying secondhand, you need it
2. Ignoring PSPM registration — precious metal watches trigger this requirement
3. Underinsuring inventory — one theft can end your business
4. Poor record keeping — both SPF (SHOTS) and MinLaw require records
5. Missing GST threshold — register within 30 days of exceeding S$1M
6. Inadequate security — affects both insurance and regulatory compliance

Licences Summary

Licence/Registration	Authority	When Needed
Company registration	ACRA	All businesses
Secondhand Goods Dealer	SPF	Buying pre-owned watches
PSPM Dealer Registration	MinLaw	Precious metals/stones, S$20K+ transactions
GST Registration	IRAS	Turnover exceeds S$1M
Change of Use	URA/HDB	If premises not approved for retail

The Insurance Connection

Unlike many retail businesses, watch dealing involves holding high-value, easily transportable items. A single break-in could mean losses of hundreds of thousands of dollars.

Jewellers block insurance is specifically designed for this risk profile — covering your stock, consigned goods, and items in transit. It's not just smart business; it's essential protection for any serious watch dealer.

Key Takeaways

• ACRA registration is your first step — S$315 for Pte Ltd
• Secondhand Goods Dealer Licence required if buying pre-owned (S$280/2 years)
• PSPM registration required for precious metal watches with S$20K+ transactions
• GST registration mandatory once turnover exceeds S$1 million
• Security infrastructure — safe, CCTV, alarm system
• Insurance is essential — jewellers block covers your specific risks
• Budget S$170,000-300,000+ for startup (excluding inventory)
• Timeline: 2-4 months from decision to opening

Starting a watch dealing business in Singapore is straightforward if you follow the regulatory requirements. The key licences — SHGD and PSPM — exist to combat money laundering and stolen goods. Compliance isn't just legal obligation; it builds customer trust in a market where authenticity and legitimacy matter.