EP via Limited Company

[mcfish]

Hi,

I'm here on DP and my former overseas employer (which doesn't have presence in Singapore) asked me to work on some projects, as a contractor. While I could do that on my DP and just pay tax on the income, I was wondering if I could use this opportunity to change my status and get an EP, by opening a limited company and hire myself.
Reason for that being more stability for the family in Singapore, we'll not be dependent only on my spouse's EP.

From what I've read about incorporating (that's the term?) a PLC, is a straightforward process. Then I'll need an agent to be nominee director while my EP application is done, after which I can work as managing director of my PLC, have a company bank account and invoice the overseas customer.

I didn't see anywhere a requirement of having a lump sum of cash when incorporating the PLC, but I saw this mentioned on some websites.
Yes, the fees are a bit higher than for SP, but there's no reason for which to use an SP. The only benefit of a PLC would be to get the EP status while in Singapore.

Question is: is this correct or I'm missing something obvious?

Thanks!

[Strong Eagle]

Have you read the many, many threads in the business and career sections about starting your own business as either a private limited or a sole proprietorship, including the many that I have responded to? That would be a great starting point.

Be aware that you will fight to convince the authorities that you are going to run a legitimate business, thanks to the shady scammers who figured they could use this route to get themselves residency in Singapore, even though they had no money, no business plan, and no business experience.

And yes, my view is that you need to have enough money put into your company to support yourself at least through break even... how else are you going to pay yourself the salary you have proposed for your EP? How are you going to pay for your rented director and company expenses?

[mcfish]

I've read some of them, yes. As I said, my intention is to have a contract with an overseas company and provide services for them. In my opinion it should be enough to support my business, but I don't have any idea what the authorities consider.
Then, even if this contract will run out eventually, I will be in a position to provide similar services for other customers. Singaporean or else.

It's kind of a catch 22 problem. If I am allowed to work in Singapore then I can have a viable business. If I'm not allowed then how can I sustain my business?
And, as I said, I'm already a resident so my motivation is not to hack the system. But yes, it is to improve my status in Singapore and become active from a business point of view.
I could take this particular opportunity and work on my DP, no issue with that either. But I'm thinking about the future, about being more secure and about growing.
The setup fees and paying for the director role or the company secretary annual fee is not a problem. But I've read something about 20k as a cash upfront. Which seems a bit excessive. But OK, if putting that as a collateral makes the business more viable, then fine.

At the end of the day, from what I've read so far, an EP application may still be rejected because I don't have a proven business record, this being my first attempt at having my own company and trade as such.

[Strong Eagle]

All you can do is try. Do your homework. The people who failed didn't provide the right information. Your focus is on business plan, pro forma financials, and cash to support yourself. Even if you've got a spouse who is going to support you, you'll want that support to come in the form of a loan to the company so that you get compensated through the company and not simply supported through your wife.