LTVP+PLOC self employment confusion

[zegnaangelo]

So I have gotten my LTVP+PLOC approved.

I want to start my own consulting business. I am a bit confused as previously, some people seemed to have success being self-employed with an LOC. The process would be for me to incorporate my firm and get an SG director to inform MOM under the terms of my PLOC. As some stage, I presume that director has to resign and I will have to be the sole director?

But MOM's website says categorically that PLOC is NOT meant to be for self-employed people. (https://www.mom.gov.sg/passes-and-permi ... /key-facts) *PLOC does not allow for the holder to be self-employed*

But in 2021 in response to a question from the erstwhile Leon Perera in Parliament, Ms Gan said that self employment was allowed under LTVP/LTVP+ (provided they are registered as the sole proprietor or direcotr). Maybe the rules have changed?


And now, I understand that several LTVP holders in a previous thread have gotten their LOC approved as a self employed person. Does that mean a PLOC is actually a lesser form than a LOC (it should not be really...)

I'm utterly confused. Have the rules changed? What is the official / real policy now? Do I need to go down the EP route?

[sundaymorningstaple]

Terminology is where all get confused. A sole proprietorship and self-employment and a private limited company can all be used by a single person working for themselves. Most of the MPs don't really understand the differences either as it is rather confusing if you think about it. A self employed person work for himself and receives monies directly to his personal account (forget LOC). A Sole Proprietorship is almost the same with the exception that the Sole Proprietorship is registered with ACRA and annual business returns (proper accounting) to be addressed. BUT still only needs a single person but in of operating as John Doe, He is registered as "John Doe Handyman Services" and has a business bank account under that name and received payments made to the registered company name. But effectively he is still a self-employed person. Thirdly there is the Pte Ltd Company which needs a director (can be him eventually) and the company with one employee, will have to file a business tax return annually, and pay taxes, etc through the company. Additionally, he will then draw a salary in theory and that amount will have to be reported on his personal tax return. So, based on the individual you are talking too and the knowledge they may or may not have. You could be getting three different answers.

Operating on your own as a cash basis individual isn't likely to get you a LOC or any other type of pass (legally).

(provided they are registered as the sole proprietor or direcotr)

Operating as a Sole Proprietorship may afford you to operate with a LOC providing you are holding a Dependents pass or a LTVP (spousal based). Not sure if DP are allowed anymore to be honest as I retired several years ago. A Pte Ltd registration has the most protection for the individual as it keep the individual at arms length legally from the company (unless you are also the sole director) but the accounting can be a PITA and cost you well into 4 digits annually.