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Working in a business on an EP that you also own?

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emceerweb
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Working in a business on an EP that you also own?

Postby emceerweb » Sun, 25 May 2014 6:31 pm

My goal is to start a food & beverage company in Singapore with my friend who is a Singaporean citizen.

I am a qualified Chartered Accountant from Australia and based on the MoM Self Assessment Tool, it looks like I am likely to be eligible for an Employment Pass in Singapore.

Since the requirements for the EntrePass are quite demanding nowadays, I was wondering if my Singaporean friend can incorporate our company, I then work for that company with my Employment Pass, and then we issue more shares in the company to me, so that we both end up with 50% ownership each.

I will be the finance director of the company and also will help with operations in the beginning while we set up the retail store and ensure all is running smoothly before we open our second store.

Any advice greatly appreciated! Thankyou!

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sundaymorningstaple
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Re: Working in a business on an EP that you also own?

Postby sundaymorningstaple » Sun, 25 May 2014 8:00 pm

emceerweb wrote:My goal is to start a food & beverage company in Singapore with my friend who is a Singaporean citizen.

I am a qualified Chartered Accountant from Australia and based on the MoM Self Assessment Tool, it looks like I am likely to be eligible for an Employment Pass in Singapore.

Since the requirements for the EntrePass are quite demanding nowadays, I was wondering if my Singaporean friend can incorporate our company, I then work for that company with my Employment Pass, and then we issue more shares in the company to me, so that we both end up with 50% ownership each.

I will be the finance director of the company and also will help with operations in the beginning while we set up the retail store and ensure all is running smoothly before we open our second store.

Any advice greatly appreciated! Thankyou!


First of all, the Self Assessment Tool is only to see if you are qualified to be considered for an employment pass. It is NOT a test to see if you will get one. In every instance, the employer has to show cause as to why they need to hire a foreigner to do a job. e.g, not enough qualified locals to do the job or a very niche skillset. I'm afraid the F&B has plenty of locals who are qualified and way too many accountants, so you might find yourself half owner of a business you cannot work at, nor gain any sort of residency permit. Good luck.

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Postby Strong Eagle » Mon, 26 May 2014 1:57 am

IF you are talking downstream F&B, ie, restaurant or bar, you will need to invest a substantial amount of money in order to get an EP. I know of an expat who opened an upscale restaurant and with an investment of $200K or so, got an EP without issue.

If you're looking at the low end of the scale in terms of investment, then your ability to get an EP will be seriously compromised.

If you're talking upstream F&B (distributor, importer, etc), then the question really becomes "what is the business plan" and what skills do you bring to it?"

You can be an EP and own the company. Question is, why would you infuse cash into the company via stock instead of simply making a long term loan?


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