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Visa/EP with sponsorship?

Relocating, travelling or planning to make Singapore home? Discuss the criterias, passes or visa that is required.
jmts
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Visa/EP with sponsorship?

Postby jmts » Sat, 08 Oct 2016 2:26 am

I currently work for a US-based company managing sales in APAC and am considering the possibility of a one-year stint in Singapore with my family.

My company is not willing to create a Singapore business entity right now, so we're looking at what alternative options, if any, exist for me to be sponsored by a local reseller, which is a Singapore entity, in order to get a visa for myself and my dependents. Is this type of arrangement feasible?

Would I need to be employed directly by the Singapore-based entity in order to do this or is there a way they can sponsor this arrangement without my having to terminate my employment with my current employer? Do I need an employment pass if I'm still employed by my US-based employer?

Any help or guidance would be extremely helpful!

-Josh

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Re: Visa/EP with sponsorship?

Postby Strong Eagle » Sat, 08 Oct 2016 3:38 am

There are only two options available, and I really don't think one of them is viable.

Find a body shop that is headquartered in Singapore and will be willing to try and obtain an EP for you. Expect at least a 25 percent (and probably closer to 50 percent) override on whatever salary you are going to be paid.

But here's the kicker. Body shops rent people out to existing business entities in Singapore. They have to state the amount the contractor will be paid in order to qualify for an EP, and while I don't have all the details, I expect they will also be telling MoM whom the contractor will be working for and in what position.

So, who will you be working for? Your problem is that if you are working for a body shop but you're not contracted to anyone, you may well be perceived as carrying on business in Singapore without a legal business entity, and that is a no-no. Who is going to pay the body shop its monthly fees, which include the salary you are going to be paid?

The only way I see this working is if you work directly for the body shop, under their direction and their EP. Their directions to you just happen to be the work that you are in APAC to do. Your US based company would be paying the body shop directly. For example, if I still had my company in Singapore, I'd enter into a contract to perform certain services for the US company in Singapore, then hire you to perform those services. You would be my employee and I would bill your US company 125 to 150 percent of your salary.

In the absence of a legal entity that you will be contracted into, I judge that your best course of action is to form the company. It is not very expensive, relatively speaking, and it is quick. You get a Singapore firm to create the Singapore exempt private limited and you appoint one of their rented directors, who proceeds to apply for an EP for you, at which time you can become the director.

The company is a wholly owned subsidiary of the US firm... $1 in paid up capital will do it. Besides the fact that there are generous corporate tax allowances, your Singapore company isn't going to turn a profit anyway. No tax, the primary expenses will be an outside secretary and preparation of annual reports and corporate taxes, probably in the vicinity of S$2,500 yearly or less.

Your only other option would be to consider a representatives office. However, there are very rigid rules around such an office, and if you are visiting existing customers, you wouldn't qualify.

Siv
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Re: Visa/EP with sponsorship?

Postby Siv » Mon, 10 Oct 2016 10:02 am

jmts wrote:I currently work for a US-based company managing sales in APAC and am considering the possibility of a one-year stint in Singapore with my family.

My company is not willing to create a Singapore business entity right now, so we're looking at what alternative options, if any, exist for me to be sponsored by a local reseller, which is a Singapore entity, in order to get a visa for myself and my dependents. Is this type of arrangement feasible?

Would I need to be employed directly by the Singapore-based entity in order to do this or is there a way they can sponsor this arrangement without my having to terminate my employment with my current employer? Do I need an employment pass if I'm still employed by my US-based employer?

Any help or guidance would be extremely helpful!

-Josh


Here is the link you need with all the info relevant to your situation. I have gone thru this just 2 years ago. Same situation as yours somewhat, French MNC, using local SG distributor to assist in sponsoring my EP.

http://www.mom.gov.sg/passes-and-permit ... pplication

Good Luck

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Re: Visa/EP with sponsorship?

Postby Strong Eagle » Mon, 10 Oct 2016 11:09 am

^^^^^^^^^^^^
The key, as noted above, is a local Singapore company, willing to apply for the EP for you.

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Re: Visa/EP with sponsorship?

Postby jmts » Wed, 12 Oct 2016 5:45 am

Siv wrote:
Here is the link you need with all the info relevant to your situation. I have gone thru this just 2 years ago. Same situation as yours somewhat, French MNC, using local SG distributor to assist in sponsoring my EP.

http://www.mom.gov.sg/passes-and-permit ... pplication

Good Luck


Thanks Siv. So did you have to terminate your employment with your French employer and officially become employed by the local SG distributor in order to move through the process? Or they just "sponsor" you through the process by vouching for you and filing for your EP? What exactly does "sponser" mean in this context? Thanks again!

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Re: Visa/EP with sponsorship?

Postby Strong Eagle » Wed, 12 Oct 2016 9:12 am

jmts wrote:
Siv wrote:
Here is the link you need with all the info relevant to your situation. I have gone thru this just 2 years ago. Same situation as yours somewhat, French MNC, using local SG distributor to assist in sponsoring my EP.

http://www.mom.gov.sg/passes-and-permit ... pplication

Good Luck


Thanks Siv. So did you have to terminate your employment with your French employer and officially become employed by the local SG distributor in order to move through the process? Or they just "sponsor" you through the process by vouching for you and filing for your EP? What exactly does "sponser" mean in this context? Thanks again!


"Sponsor" means a duly registered Singapore entity willing to apply for an EP for you, following all the terms and conditions that surround an EP. "Sponsor" is a fluff, mean nothing word because they are just a company that has agreed to hire you.

They must pay you the minimum salary for an EP, commensurate with your educational level and years of experience. They must file an IRAS form IR8A each year, stating your earnings. In other words, you ARE the employee of the company that applied for and presumably obtained, your EP. You will have an employment contract with them. You work for them.

Whether or not you terminate your current employment is entirely up to you and the company in Singapore that will hire you and apply for your EP.

Siv
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Re: Visa/EP with sponsorship?

Postby Siv » Wed, 12 Oct 2016 9:21 am

jmts wrote:
Siv wrote:
Here is the link you need with all the info relevant to your situation. I have gone thru this just 2 years ago. Same situation as yours somewhat, French MNC, using local SG distributor to assist in sponsoring my EP.

http://www.mom.gov.sg/passes-and-permit ... pplication

Good Luck


Thanks Siv. So did you have to terminate your employment with your French employer and officially become employed by the local SG distributor in order to move through the process? Or they just "sponsor" you through the process by vouching for you and filing for your EP? What exactly does "sponser" mean in this context? Thanks again!


No. I did not have to terminate my employment with the MNC. Local company just sponsors you in terms of support on paper only. You'll see how it works once you download the forms. The sponsor doesn't hire you, as by definition that would not mean sponsor but a fresh employment whereby the local company would apply an EP for you online. Yes, EP via sponsorship can only be done manually and would take about 5 weeks for processing.

In my case, I did everything. Downloaded forms, filled it, get some documents from local SG company sponsor and their signature, submit with payment at a post office. Voila !

Hope this helps.

Cheers


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