Whether this a paid up capital for a new Singapore company incorporation for foreigners or whether it is meant for all Entrepreneur Pass scheme applications, the amount of SG$50,000 paid-up capital is not applicable any longer.
With the new regulation, all new business owners under the Entrepass Visa may note that the previously established requirement of a minimum SG$50,000 paid-up capital in a Singapore based company has been abolished.
Why? This is because the Singapore government aims to enhance the start-up environment in the republic by making the EntrePass available to a much larger pool of entrepreneurs and investors.
EntrePass is meant for foreign business professionals and entrepreneurs who’d wish to initiate their own career and business in Singapore, and if differs from an Employment Pass, which is needed if a foreign individual wants to work in Singapore or be a director of a Singapore company.
Under the EntrePass holder can stay in Singapore for a validity of two years and candidates are encouraged to apply for it themselves.
EntrePass is renewable as long as the criteria are satisfied. Ministry of Manpower (MoM) stated in its eligibility criteria, applicant’s business or incorporation must:
Obtain funding or income from an recognized source
Have an existing intellectual property with their product
Conduct research collaboration with a valid source
Be an incubate at a Singapore government initiated incubator
Documents required for EntrePass are:
Copy of the personal particulars of the applicant’s ID/ passport;
Past employment testimonials
A business plan
Registering Your Company in Singapore’s Free Trade Zones
Singapore Free Trade Zone
Both local and foreign companies who want to incorporate a company complying to the Free Trade Zones Act, must have a paid up share capital of SG$100,000 if they require a warehouse.
Companies who only require an office space on the other hand, would need a paid up share capital of SG$50,000. Hence, this is where the amount of SGD 50,000 appears.
As it is already known, Singapore makes an excellent FTZ port and an ideal storage solution for many companies both locally and internationally. Singapore also has simplified their customs procedures to make the FTZ ports and areas even more ideal and conducive to businesses.
Companies registered in Singapore stand to benefit from the numerous advantages which are offered by the FTZ. Those benefits include:
Goods and Services Tax is not imposed on products which are imported into the FTZ as long as these products are thereafter exported and not sold locally within Singapore
Permits are not required for the transshipment of non-controlled goods
No customs duties imposed on companies conducting business in the FTZ
Raising Capital for Your Company
Now let’s say you still want to open up a company with a paid up capital of SGD50,000, and you do not have the capital on you, you can do so via:
Loan from Family and Friends
Investment from venture capitalists
Launch a crowdfunding campaign
With that being said, it is definitely better to have a strong paid up capital rather than being financial strapped.