5 mins | September 15th, 2021 | Among all the available passes in Singapore, the Employment Pass (EP) is the best option for foreign entrepreneurs to incorporate their companies in Singapore and relocate to run their business.
- What is the most suitable type of entity to incorporate?
- What visas are needed for me and my family to relocate and work in Singapore?
- What are the tax implications for corporate and personal taxes?
Choosing the best type of entity for foreign entrepreneurs
The recommended entity for foreign entrepreneurs is a private company limited by shares. Here’s why:
- It’s a separate legal entity from the entrepreneur’s. This means personal legal and financial status is not affected even if the company is insolvent or being sued.
- Funding for company’s expansion is easier through issuing of new shares to new shareholders.
Teppei Nitobe
Founder of Glow E Pte Ltd
“ With reliable guidance and high success rate that comes with 10 years of professional experience from Paul Hype Page, I received my employment pass renewal smoothly and will continue PHP annual compliance services to ensure smooth operational of my company.
Thank you. ”
Why an EP is the best option for you and your family
Your new company can now apply for your employment pass, and a dependent pass for your family. It is the best option due to:
- High Chance of Success Rate for Approval and Ease of Renewal as MOM has no stipulated conditions
- S$4,500 is the minimum monthly salary required to pay yourself as the entrepreneur, no extra pension or levies required.
1. You should declare an optimal amount of salary reflecting the your experience and company’s profile
2. Have a Back up Plan or solutions ready at hand, following the advice of an experienced professional agency as you may have less than 14 days to submit an appeal or additional documents
What kind of taxes are you or your company subject to?
Commonly heard and known, Singapore has a favourable tax regime. Read more about it here. A company’s effective tax rate for the first $100,000 profit is estimated about 7%.
Personal Tax for yearly salary of $100,000 is estimated to be 5%.
What is the timeline to start incorporation and EP application?
Day 1) Register an account on our patented platform. Fill up our incorporation and employment pass form.
Day 5) After compliance team approval, Incorporate the company with our nominee services
Day 7) Review client’s Employment pass application and advise on the additional documents that maybe needed such as Business Plan, Tenancy Agreement and etc
Day 10) Submit Application to MOM and open company’s bank account
We are able to fund the company with up to $300,000 to secure a higher approval rate
Day 20) MOM may approve or request for additional documents
Day 30) Submit document after communication with MOM officer and working with client on the needed documents
Our staffs have more than 12 years prior working experience with MOM therefore can manage the requests from MOM with HIGH success rate
Day 35 to 60 days) MOM will approve the application and once client secure employment pass, you can be considered a local resident director, you do not need the nominee director services.
Flexible Pricing for All
Advise:
The most important factor when setting up a Singapore business is to secure the visa for oneself and family members. Many professionals such as lawyer or tax advisor expert may not have the right experience in visa application hence resulted in client unable to relocate to Singapore after company is set up.
FAQs
The validity of an employment pass is 2 years in general.
After your company has been successfully incorporated, you will receive the Certificate of Good Standing from ACRA and a Company Business Profile. Once you have these documents in hand, you will be assured that your company has been successfully incorporated.
Your registered company name will be reserved for 60 days before incorporation. You can apply for another 60 days extension if you need it.
Yes. An Employment Pass does include Dependent’s Pass and Long-Term Visit Pass for your family members.
Hi,
I am a SPR, I would like to check if I want to include my foreign partner into my newly incorporated co, is it possible to do so, if he is still holding student visa (final year student) in SG, is he eligible for EP ? Will this affect his student visa?
Thank You,
Sandy
Hi Sandy,
In short, your partner may apply for EP. However, do note that upon approval, he has to cancel his Student visa.
Please read our full reply in the forum link below:
https://www.paulhypepage.com/forums/business-forums-singapore/is-student-visa-holder-eligible-for-ep-2/#post-195
Feel free to interact with us in the forum if you need further clarification. We will be happy to assist.
Best Regards,
Paul
Hi, I am a foreigner in SG and I trying to renew my entrepass in SG but I would like to switch to an employment pass, since I am employed by my own company as CEO. At the monent I am also the sole director of my company. My salary is high enough. How can I do it? Can I apply for EP while the renewal of the entrepass in process? Thank you- Simon
Hi Simon,
Your question has been answered under our forum.
https://www.paulhypepage.com/forums/business-forums-singapore/renewal-of-the-entrepass-in-singapore/
Feel free to interact with us in the forum if you need further clarification. We will be happy to assist.
Best Regards,
Paul
Hello,
I am in Singapore on a stable long-term Employment Pass. Would there be any workaround for me to start an online business while still on EP? I wouldn’t want to lose the EP but would be keen to run an online business in parallel.
Thank you,
Alex
Hello Alex
Yes, we are able to assist in helping you register your business and you can keep your current employment. If you would like to discuss this further, please contact us via Paul Hype Page.
Thank you for your comment.
Warm regards
Paul
Hi,
I want to get Employment Pass by incorporating a private limited company in Singapore. How do I show proof of the minimum monthly fixed salary of Singapore Dollar $3900? I have not been getting fixed salary as I have been a freelancer. Can I show this salary proof with this new company by me drawing the fixed salary as CEO? Thank you.
Hi Fred
We are able to assist in your application. Please contact us via Paul Hype Page so we can discuss this further.
Thank you for your comment.
Warm regards
Paul
Hi ,
I am a singaporean holder planning to set up a local photography company with my foreigner holder (malaysian) . Can you guide me further with the procedures and details on how to go further about it. After researching, can i check if a upfront paid up capital of $50,000 is neccessary for applying an employment pass or base on case to case basis?
Thank you.
Hello Chris,
Since you and a foreigner plan to set up a company in Singapore together, you must first fulfill all of the relevant requirements. Your company must have at least one local director and company secretary, a number of shareholders between one and 50, a registered address located in Singapore, paid up capital is minimum S$1,000 and an approved company name.
There is no need for you to pay such a large amount of money to apply for an Employment Pass because we provide Employment Pass application services. Our fee is S$800. Please contact us for further information.
Thank you for your questions.
Paul
My wife is in a DP, we are looking at her setting up a small company in Singapore which she can change her DP into and independent EP (we do not want to have a LOC for the DP), is this somthing you could assist with and be possible?
Hello Nigel,
Any Dependent Pass holder who intends to set up a company in Singapore must first apply for and receive an Employment Pass before doing so.
We provide services related to Employment Pass applications as well as others related to company incorporation in Singapore. Please contact us if you would like to know more.
Thank you for your question.
Paul
Hi
I want to open company and get e pass and dependent pass.
How is it possible please guide me on this.
Hello Nilesh,
If you would like to open a company in Singapore as a foreigner, you will require the services of a professional firm to do so because foreigners may not incorporate a company on their own. You will also need documents which state details about shareholders, directors, the company secretary, the company name, business activities, the company’s constitution, and a non-PO Box registered address in Singapore.
To apply for Dependent’s Pass, you will need to hold either an Employment Pass or S Pass, earn at least S$6,000 in fixed monthly salary, and be sponsored by a Singapore company.
We will be of service to you regarding the opening of your company and application of work passes. Just contact us to find out more.
Thank you.
Paul
Hi there,
I am Malaysia and has been living and working in Australia for the last 13 years. My husband (Australian) has been issued with an EP and his company is in the process of applying a dependant pass on my behalf. I intend to set up a company of my own to run a consulting business, would I be eligible being a dependant pass holder?
Thank you.
Sam
Hello Sam,
As a Dependant’s Pass holder, you could own a company in Singapore. However, to work in the company, you will need to apply for EP after the company is setup.
Our specialists can help you with both setting up a Singapore private limited company and allowing you to receive an Employment Pass. You may reach us via email or telephone for further information.
Paul