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Renewal of LOC rejected. What to do?

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richasiro
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Renewal of LOC rejected. What to do?

Postby richasiro » Tue, 09 Dec 2014 10:05 am

Hi,
I am a DP pass holder and freelance web solution provider. So I registered my services under Sole Proprietorship and got LOC that time but my husband changed his job and joined new employer in Singapore so my DP got cancelled and so my LOC.
After getting my renewed DP , I did apply again for LOC but this time my LOC got rejected by MOM.
I checked rejection reason with MOM and they said I should give reason for not applying for Enter Pass. I don't know why they are expecting me to apply for Enter Pass.
I did appeal with the reason that my firm is just a start up and registered under Sole proprietorship. Now I am very concern about it approved.
I have some ongoing projects which was started when I was having my LOC, now they are asking me to raise invoices before 3rd week of Dec so that they will also raise e-invoice to govt for getting rebate for promoting their business, but I cannot do it as don't have LOC now.
So just want to explore all the options.
* Can I still raise invoices to them as company still active.
* Can I meet any officer in MOM / ICA to explain my case personally?
* Also, any other ways to raise invoices, in case my appeal also get rejected? I mean, should I make any local partner or hire an employee?
I will really appreciate your help in this matter.

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Re: Renewal of LOC rejected. What to do?

Postby Strong Eagle » Tue, 09 Dec 2014 12:03 pm

You have a problem.

First, whomever told you that you need to apply for an Entrepass is an idiot. There is no way that a web solution provider would ever qualify for an Entrepass, unless you were attempting to start up the next multi million dollar site like WIX. So, you might have some grounds for appeal since the people rejecting your pass clearly don't understand that you can make it go under an Entrepass.

More importantly though, are the following questions, the answers to which are needed in order to determine if there is any way you can regain your LOC.

a) How long has it been since you were approved for your original LOC?
b) How much money did your SP earn during that period?
c) Did you file proper personal income tax forms, including reporting your SP profit/loss?
d) Have you actually invoiced anyone?

See... here's the deal... if you've had this LOC for a while and you haven'e done anything with it, MOM figures you are an amatuer... you've made no money, you've got no clients, you've got no signed contracts, you've got no invoices... they will not approve you because they view your business as a fake.

If you have any/all of the above, you need to carefully document. You need to create/revise your business plan, including pro forma and real financial statements. Then you can go appeal.

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Re: Renewal of LOC rejected. What to do?

Postby gailwynand » Wed, 10 Dec 2014 4:13 pm

The above may not have anything at all to do with it. Rather, it sounds like OP didn't follow instructions.

"Explain why Entrepass is not required" is one of the elements in the application procedure described in this forum.

In my case, I just said the Entrepass is not applicable since it is a sole proprietorship with no capital investment or employees needed or envisioned.

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Re: Renewal of LOC rejected. What to do?

Postby wprenewal » Tue, 06 Oct 2015 9:15 pm

this oly show that DP registered under Sole Proprietorship and got LOC is not legal that why the 2nd round, the MOM got info from ACCRA thus they reject the LOC. This show that this route is not allowed

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Re: Renewal of LOC rejected. What to do?

Postby Strong Eagle » Tue, 06 Oct 2015 9:49 pm

wprenewal wrote:this oly show that DP registered under Sole Proprietorship and got LOC is not legal that why the 2nd round, the MOM got info from ACCRA thus they reject the LOC. This show that this route is not allowed


You are wrong and misinformed. Read some other threads in the Careers forum.

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Re: Renewal of LOC rejected. What to do?

Postby wilkie366 » Tue, 31 May 2016 6:04 am

Hi,

Resurrecting an old thread because this just happened to me as well. I run a photography business and had been granted an LOC to run this business in September of 2015. My DP was up for renewal in May of this year, and when the LOC renewal came up, it got rejected. These are the reasons that have been given for rejection:

1.
The Letter of Consent is intended to facilitate employment for Dependant's Pass holders with a job offer in Singapore. If you are seeking self-employment as a freelancer or business owner, the correct pass should be the Entrepass which is designed for foreigners who want to start or operate a business in Singapore.
2.
The correct pass for the applicant is the EntrePass. Please check the MOM website for more information on the criteria, and how to apply.

My photography business is a very small business (less than SGD 5000 in tax year 2015), and for last year I have filed returns as well. I have to appeal the rejection, and I would appreciate any help from the experts on this forum on what I should be showing in the appeal.

thanks
Bob

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Re: Renewal of LOC rejected. What to do?

Postby sundaymorningstaple » Tue, 31 May 2016 11:02 pm

It's called too many complaints from the locals. Before, anybody could get an LoC if they were still breathing. Now that it's been opened up to LTVP/+ holders as well, you now have to have somewhat suitable background for issuance. We've been seeing lots more LoC rejections especially for those trying the do the self employed route as it does seem to be circumventing all the other avenues to work. I frankly have no idea what you should show in the appeal if nothing you are showing them directly addresses the reasons for rejection. Excuses will not cut the mustard. Corrections to your business model is all that will work, which mean, you will probably have to wind up.

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Re: Renewal of LOC rejected. What to do?

Postby Strong Eagle » Tue, 31 May 2016 11:28 pm

wilkie366 wrote:Hi,

Resurrecting an old thread because this just happened to me as well. I run a photography business and had been granted an LOC to run this business in September of 2015. My DP was up for renewal in May of this year, and when the LOC renewal came up, it got rejected. These are the reasons that have been given for rejection:

1.
The Letter of Consent is intended to facilitate employment for Dependant's Pass holders with a job offer in Singapore. If you are seeking self-employment as a freelancer or business owner, the correct pass should be the Entrepass which is designed for foreigners who want to start or operate a business in Singapore.
2.
The correct pass for the applicant is the EntrePass. Please check the MOM website for more information on the criteria, and how to apply.

My photography business is a very small business (less than SGD 5000 in tax year 2015), and for last year I have filed returns as well. I have to appeal the rejection, and I would appreciate any help from the experts on this forum on what I should be showing in the appeal.

thanks
Bob


Sounds like a bummer and that they are cracking down. However, there are some things that you can do for an appeal.

a) The correct pass is not the Entrepass and the person who created the letter to you is misinformed. Your business would not qualify for an Entrepass. You need to extract the provisions of the Entrepass from the thread about it and note the multiple places where your business does not qualify.

b) Professionals who otherwise cannot qualify under the Entrepass have nonetheless been accepted under LOC and SP or Pte Ltd and EP because MoM has recognized that qualified self practice professionals cannot qualify for an Entrepass. You need to demonstrate this... and if you search my posts, I have published the contents of an email from MoM to me that says such professionals are considered on a case by case basis.

c) You will need to convince them that you qualify as a "professional". Financial advisers, project managers, business consultants, etc are generally 'desirable' professionals in Singapore... perhaps there is something unique about your business that makes it a cut above... architectural photograpy, for example, as opposed to drooling babies.

d) You need to demonstrate that you have been a value add. For example... taxes paid, bank accounts maintained, people hired (contract/employed, part time/full time... even folks who make business cards), and anything else you can come up with.

e) You need to demonstrate that your activities are not negatively impacting the average Singaporean... for example, you're not doing Singaporean weddings.

It's hard to tell what is happening here... there seems to be an overall crackdown... and maybe it's because people are abusing the LOC... saying they are doing one thing when actually doing another.

I'd say your odds of a successful appeal are 50-50 or less... and... nothing ventured, nothing gained.

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Re: Renewal of LOC rejected. What to do?

Postby wilkie366 » Fri, 24 Jun 2016 8:48 am

Hi Strong Eagle,

Many thanks for your detailed response. So I did go ahead, with your advice and on the advice of my agency, and prepare an appeal letter. The main thrust of my appeal was that my business is still in the fledgling state (I had tax returns from last year to prove it) and that I still need time to develop my business to a point where it can even be considered for being set up as a Pte Ltd. I also reiterated the fact that my business is largely a single person business, and that i have a lot of experience in this business. Based on this, my appeal letter did go through and I'm quite thankful to have the LOC renewed again.

Thank you for your help, much appreciated!!
Bob

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Re: Renewal of LOC rejected. What to do?

Postby Strong Eagle » Sun, 26 Jun 2016 9:46 pm

^^^^^^^^^^^^
wilkie366, congratulations and thanks for the useful information. Your circumstances and appeal tend to support two things:

a) A real business, properly done and documented, can still get a LOC.

b) Your experience lends credence to the theory that MoM is receiving tons of "junk" LOC applications and has started to crack down.


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