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Open an Air Conditioning Business in Singapore

Open an Air Conditioning Business in Singapore

Singapore is known as one of the most humid territories in Southeast Asia. The weather conditions here have determined the creation of certain categories of services, among which plumbing and air conditioning are the most common and the best types of businesses when it comes to profits.

Both local and foreign investors are welcome to open plumbing and air conditioning companies in Singapore with the mention that they must respect the requirements imposed by the Building and Construction Authority (BCA) in the city-state. It is also mandatory for homeowners to know that the installation of an air conditioning system must be completed by qualified personnel.

Our Singapore company formation consultants can help foreign investors who want to open air conditioning businesses here.

Air conditioning company registration in Singapore

The first step to register an air conditioning company in Singapore in 2024 is to choose the type of structure and register it with ACRA. This type of activity is suited for both sole traders with the right qualifications and also for limited liability companies. There is also the option of changing the sole trader into a limited liability company, for those interested in expanding their portfolio or if the law requires it.

Our company formation agents in Singapore can assist with the incorporation process of the air conditioning business.

Licenses for air conditioning companies in Singapore

There are no special licenses for setting up an air conditioning business in Singapore in 2024, but as mentioned above, the personnel of such a company must have specific qualifications. It is the company’s duty to register its trained installers with the BCA.

The company installing the air conditioning system must also respect the Code of practice for air-conditioning and mechanical ventilation and the ISO standard for the materials used upon installation, based on the requirements of the Building Control Regulations.

The company is also required to file an installation report with the BCA or the Housing and Development Board (HDB) once the work is completed.

The Singapore air conditioning market in 2024

Singapore is known for its sunny days and dry air for most part of the year. This is why the number of households not having air conditioning is almost inexistent. This has led to the development of an entire industry, whose numbers looks like this:

  • by the end of the year, the revenue of this market is expected to reach SGD 122.4 million;
  • each household contributes around SGD 65 to the revenue of this industry;
  • by 2025,  the volume growth of this sector is expected to reach 4%;
  • by 2029, the number of air conditioning units to be sold is projected to reach 146,100.

For full information on the requirements related to opening an air conditioning business in this jurisdiction, please contact our Singapore company formation agents. We can assist with the registration of the company with ACRA.