Employment Pass / (Foreign?) Income from separate startup

[fubar]

Hey guys,

I soon will move to Singapore for a job. My employment pass application has already been approved.

Now, I also have a small startup. It makes a little bit of (recurring) money, and doesn't take a lot of time to maintain (1-2 hours a week).

I would like to keep my startup, and this requires me to find an appropriate business entity for it.

I understood that I cannot work for another company with my employment pass - so this rules out starting a Singapore company.

However, does this rule also apply if I were to start a company in another country (eg US / EU / Hong Kong). In the end, most tax laws consider a company tax resident in the place where the company activities take place. So, regardless of where I incorporate, if I spend those 1 or 2 hours of maintenance in Singapore, will the income my startup generates be regarded as Singapore sourced income?

[Strong Eagle]

Under the radar, no one is going to care about your HK registered company.

By the rules... if you do not represent your company for any work related purposes in Singapore then you may perform work for the overseas employer via electronic telecommunications from your home without a work permit. That would suggest that you are not going to run afoul of any issues with MoM.

As for IRAS, while they exclude passive income in a foreign country, your active income is taxable in Singapore and you would need to file your income from your foreign business since you are earning it in Singapore.