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Opening a company with EP

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pappuu
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Opening a company with EP

Postby pappuu » Tue, 26 Aug 2014 1:14 am

I am an experienced scientist working in one of the best govt research institute. I am a foreigner holding EP. I would like to register and open a company to commercialize my discoveries and also provide consulting services. Initially I would to invest 10-20% of my time in order to attract investment and funding from govt to grow the business. I am wondering if it would be possible to do it.
Last edited by pappuu on Wed, 27 Aug 2014 12:44 am, edited 1 time in total.

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Strong Eagle
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Re: Opening a company with EP

Postby Strong Eagle » Tue, 26 Aug 2014 9:20 am

pappuu wrote:I am an experienced scientist working in one of the best govt research institute. I am a foreigner holding EP. I would like to register and open a company to commercialize my discoveries and also provide consulting services. Initially I would to invest 10-20% of my time in order to attract investment and funding from govt to grow the business. I am wondering if it possible to do it.


You can form a company while on an EP. You can be a shareholder. Beyond that, you cannot be a part of management or otherwise an employee. It will be very difficult for you to be a director as small companies generally don't have outside directors.

If the government research institute is OK with it, you should form your company, get an EP from your own company, then contract your services back to the research institute. This is the only way to make it work.

In short, you cannot work for two employers on an EP, even if one of them is you.

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Postby nakatago » Tue, 26 Aug 2014 9:21 am

Corollary to your other post, things would be simpler if you get your PR first.

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Re: Opening a company with EP

Postby PNGMK » Tue, 26 Aug 2014 9:57 am

pappuu wrote:I am an experienced scientist working in one of the best govt research institute. I am a foreigner holding EP. I would like to register and open a company to commercialize my discoveries and also provide consulting services. Initially I would to invest 10-20% of my time in order to attract investment and funding from govt to grow the business. I am wondering if it possible to do it.


I can't see how you are discovering things that can be commercialized while in the employment of a Singapore GRI without them owning the IP frankly. I'd, ah, check that first. Most people at your level have almost certainly signed an agreement signing over all rights for the IP to their employer and if you're hoping to skirt around that, watch out!

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Re: Opening a company with EP

Postby taxico » Tue, 26 Aug 2014 5:17 pm

PNGMK wrote:
pappuu wrote:I am an experienced scientist working in one of the best govt research institute. I am a foreigner holding EP. I would like to register and open a company to commercialize my discoveries and also provide consulting services. Initially I would to invest 10-20% of my time in order to attract investment and funding from govt to grow the business. I am wondering if it possible to do it.


I can't see how you are discovering things that can be commercialized while in the employment of a Singapore GRI without them owning the IP frankly. I'd, ah, check that first. Most people at your level have almost certainly signed an agreement signing over all rights for the IP to their employer and if you're hoping to skirt around that, watch out!


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Re: Opening a company with EP

Postby pappuu » Wed, 27 Aug 2014 12:57 am

PNGMK wrote:
pappuu wrote:I am an experienced scientist working in one of the best govt research institute. I am a foreigner holding EP. I would like to register and open a company to commercialize my discoveries and also provide consulting services. Initially I would to invest 10-20% of my time in order to attract investment and funding from govt to grow the business. I am wondering if it possible to do it.


I can't see how you are discovering things that can be commercialized while in the employment of a Singapore GRI without them owning the IP frankly. I'd, ah, check that first. Most people at your level have almost certainly signed an agreement signing over all rights for the IP to their employer and if you're hoping to skirt around that, watch out!


They want me to bring collaboration from big companies. But big companies are usually interested in already established SMEs to invest. So I was thinking about opening a company myself and apply for funding to grow it to become interesting for bigger companies. It would be a one man show in the beginning.

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Re: Opening a company with EP

Postby Mi Amigo » Wed, 27 Aug 2014 4:23 am

pappuu wrote:They want me to bring collaboration from big companies. But big companies are usually interested in already established SMEs to invest. So I was thinking about opening a company myself and apply for funding to grow it to become interesting for bigger companies. It would be a one man show in the beginning.

But who will own the IP, you or the research institute? That is a key question.
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Re: Opening a company with EP

Postby Strong Eagle » Wed, 27 Aug 2014 6:24 am

pappuu wrote:They want me to bring collaboration from big companies. But big companies are usually interested in already established SMEs to invest. So I was thinking about opening a company myself and apply for funding to grow it to become interesting for bigger companies. It would be a one man show in the beginning.


If you own or have rights to IP, then I'd lean towards doing an Entrepass deal. For most people the terms have become onerous but with IP rights, your're a great candidate.

You don't just run off and start the company. You need to research and shop the companies you think might be interested. You need to research and shop the venture capital groups. Essentially, you need to chum the waters to attract the fish you want to catch. Essentially, you develop a marketing plan to attract those in search of the 'next big thing'.

Then you start your Entrepass company with 3 or 4 million shares of available stock, at least. You offer your most promising fish a 'ground floor' opportunity and in exchange for enough cash give away the minimal amount of stock you can. You don't start as a one man operation... you start as a funded exploratory firm with enough personnel to do something with the IP.

Believe me, if you've got something hot enough that it's a profitable, marketable product in the future, lots of firms will want to talk to you. Get enough money to be a stage one/round one funding start up... even easier to do if you get the backing of the government institute.

Once you've got something to show, go to round two funding... the serious dollars that turn your research and exploration into a functional company that is actually producing product.

Then... like FB and Google... after a few years you make your initial public offering and drown in the money that your stock share now provides you.

Caveat: If you don't have IP rights, or the right to acquire them, then you are pissing in the wind.

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Re: Opening a company with EP

Postby PNGMK » Wed, 27 Aug 2014 10:50 am

Mi Amigo wrote:
pappuu wrote:They want me to bring collaboration from big companies. But big companies are usually interested in already established SMEs to invest. So I was thinking about opening a company myself and apply for funding to grow it to become interesting for bigger companies. It would be a one man show in the beginning.

But who will own the IP, you or the research institute? That is a key question.


1 million : 1 any idea you think you own that has anything to do with your field of research will be seen (by the courts and by your current employer and potential investors) as being created while in the employment of your current employer. If you're thinking that you can bail and then magically recreate that stolen IP in a new company you're in for a reaming in court.

Answer think hard and answer the question: "Who owns this IP"? Singapore government linked companies have been burnt, and burnt hard by IP theft in the last few decades and are not going to take it lightly. The courts here will back them up and getting a entrepass will be the last thing on your mind.

I see your problem but I would try to work within the confines of your current employment agreement. See if you can create and sell a business plan to your current bosses and management for doing your idea but as part of their larger business.

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Re: Opening a company with EP

Postby pappuu » Wed, 27 Aug 2014 7:36 pm

Thanks for your info. I found this link meant for start ups:

http://www.etpl.sg/engage-us/to-start-up

Strong Eagle wrote:
pappuu wrote:They want me to bring collaboration from big companies. But big companies are usually interested in already established SMEs to invest. So I was thinking about opening a company myself and apply for funding to grow it to become interesting for bigger companies. It would be a one man show in the beginning.


If you own or have rights to IP, then I'd lean towards doing an Entrepass deal. For most people the terms have become onerous but with IP rights, your're a great candidate.

You don't just run off and start the company. You need to research and shop the companies you think might be interested. You need to research and shop the venture capital groups. Essentially, you need to chum the waters to attract the fish you want to catch. Essentially, you develop a marketing plan to attract those in search of the 'next big thing'.

Then you start your Entrepass company with 3 or 4 million shares of available stock, at least. You offer your most promising fish a 'ground floor' opportunity and in exchange for enough cash give away the minimal amount of stock you can. You don't start as a one man operation... you start as a funded exploratory firm with enough personnel to do something with the IP.

Believe me, if you've got something hot enough that it's a profitable, marketable product in the future, lots of firms will want to talk to you. Get enough money to be a stage one/round one funding start up... even easier to do if you get the backing of the government institute.

Once you've got something to show, go to round two funding... the serious dollars that turn your research and exploration into a functional company that is actually producing product.

Then... like FB and Google... after a few years you make your initial public offering and drown in the money that your stock share now provides you.

Caveat: If you don't have IP rights, or the right to acquire them, then you are pissing in the wind.

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Postby Strong Eagle » Wed, 27 Aug 2014 9:13 pm

Again, whether or not you own the IP rights makes all the difference.

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Postby PNGMK » Thu, 28 Aug 2014 12:08 am

Strong Eagle wrote:Again, whether or not you own the IP rights makes all the difference.


OP is clearly dodging that question.

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Postby pappuu » Sat, 30 Aug 2014 8:15 pm

Yes many of the IPs are actually for SG only. I heard they are funding the start ups for several years to meet KPI.

Strong Eagle wrote:Again, whether or not you own the IP rights makes all the difference.

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Postby Mi Amigo » Mon, 01 Sep 2014 2:26 am

pappuu wrote:Yes many of the IPs are actually for SG only. I heard they are funding the start ups for several years to meet KPI.

Can you explain what you mean by that? Are you saying that the research institute will license the relevant IP to suitable Singaporeans, so that they can form companies to develop the ideas commercially? And if so, how would that help you?

TBH, I'm not sure whether you're being deliberately obtuse, but from the information you've provided so far it's hard to figure out how you could achieve your stated goal of "open[ing] a company to commercialize my discoveries and also provide consulting services."
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