An Employment Pass is one of the many preferred working visas available in Singapore. As the purpose of having this pass is to work in Singapore, being just a shareholder in a local Company is not enough reason to hold an Employment Pass.
What are the criteria to hold an Employment Pass?
The criteria to be eligible to hold an Employment Pass is as below:
Company wishes to employ you
Salary offered is SGD$ 4,500 above
Education background is from accredited institution
Professional qualification, specialist skills is suitable to position applied
In general, a shareholder is normally someone who invest their money into the Company and expect returns in term of dividend.
The Company does not normally employ their shareholders to work with the Company. However, in most cases, the shareholder is usually the same person appointed as the Company’s director.
If the shareholder and director is the same person and said person wishes to work and live in Singapore, then having an Employment Pass is a way to go.
The Company is liable to:
Pay monthly salary to Employment Pass holder
Have sufficient fund to employ the candidate for the next 12 months
Have contracts secured that will generate revenue to cover the candidate’s 12 months salary payable and cover the business operation expenses
Note: To incorporate a Company in Singapore, a local director must be appointed. However, by holding an Employment Pass, you will be considered as a local director.
What are the benefits of holding an Employment Pass?
As an Employment Pass holder, you will enjoy the benefits as below:
Live and work in Singapore. May also bring in certain family members if you earn at least SGD$ 6,000 per month.
May incorporate a Company and runs a business in Singapore
One of the tickets for you to apply Permanent Residency in Singapore
Allows you to open a bank account, apply for credit cards, rent an apartment as well as engage with telco services/cable contracts
May travel in and out of Singapore without the need to apply for visa
Previously, acquiring an Employment Pass is a much easier process. However, that is no longer the case. Hence, having a well thought business plan as well as manpower projection is crucial during this time of the day.
Employing an Employment Pass holder will need the Company to be ready in preparing the potential documentations that MOM will likely request. We highly advise that as shareholders and directors of the Company, ensure the Company starts operating its business for at least 6 to 12 months before applying an Employment Pass.
This way, the Company will have time to prepare the potential documents MOM might request and has sufficient fund to employ foreign expats via Employment Pass.