If you do any business locally, you must have a registered legal entity in Singapore. Therefore, the answer to your question regarding using your foreign small business is, "No, you can't, because you reside in Singapore and you do business in Singapore."Lophophora wrote:Hello,
I have read about doing business in Singapore on various web sites and on this forum, but I am still confused about what to do in my particular case.
I'm on a DP and have about 14 months left in Singapore (might be extended). I have never worked in Singapore but I now have an opportunity to start a business as an independent mixing engineer (music production). I have the gear, the skills and some clients already, I just need to find a way to legally be paid for my services.
Because this will likely be a 1-year lifespan activity only and part-time, and the revenues will probably be low (estimated $1500 monthly, although could increase after a few months), there is no point in incorporating a company.
The proper way to do this seems to be a sole proprietorship but I understand the rules have changed last year and a foreigner now have to either apply for an EntrePass (which I think isn't worth it for my project), or create a partnership with a resident partner. Is this correct? I couldn't find any detailed info on this local partner. Do I have to pay him? Does he have to be active in running the business? Does he have to assume any liability in the business?
Alternatively, I have thought about using a small business I still own in my home country (France). Is there anything illegal from Singapore's perspective about using a foreign small business to issue invoices to individuals or companies locally? There is no product or trade involved, just services.
Thanks a million if you can help me find my way through this.
You do not need a Singaporean/PR partner to start a SP... just go to ACRA and register it. Because you have legal residence in Singapore, you are the local authorized representative. Then you go apply for a LOC to work for your SP. This has become harder to do for two reasons.Lophophora wrote:Thank you, you are confirming what I thought, that a SP with a local partner is the only viable solution.
Do you know wher/how I can get answers to my questions about the partner? I can't find anything about that on the ACRA or MoM web sites. I already have someone I'm considering sas a partner but I need to know:
- Do I have to pay him?
- Does he have to be active in running the business or is his presence on the paperwork enough?
- Does he have to assume any liability in the business?
Just a question about the whole partner thing: on this page (ACRA) I can read this:
The local authorised representative
(a) a natural person;
(b) at least 18 years of age;
(c) otherwise of full legal capacity; and
(d) ordinarily resident in Singapore.
Unless I have a semantic problem on the word resident, it seems to me that I meet all of the above requirements. So why do I need a PR or Singaporean partner?
They have probably confused it with starting a private limited. You can start your own private limited and be the sole shareholder but only a director can apply for an EP for you. And since you don't have an EP, you can't be a director, and hence, you need the outside director at least until such time as you get your own EP and can become managing director.Lophophora wrote:Thank you for your time. I have already contacted ACRA and MoM and will go forward according to what they answer is.
What you said matches what I could read on the ACRA site, I don't know why so many of the expats told me it wasn't possible to start a SP without partnering, some of them event told me it was no longer to start an SP even for a Singaporean! Some rumors are persistent.
a) Register a sole proprietorship in your name at ACRA: https://www.acra.gov.sg/components/wire ... ageid=1087Lophophora wrote:Ok I have contacted ACRA and MoM but didn't get a lot more information for now. I have also contacted a consulting company and here is what they told me:
Recently the MoM has stopped granting LoCs to SP owners, including those who are already in business and had previously got their LoC for exactly the same business. They either have to shift to a Pte Ltd or go out of business. This is not something on which the MoM communicates officially, but they seem to consistently reject all LoCs.
Of course this could be a vicious selling technique but it seems to corroborate things I already read or heard. Any of you heard about that?
Can I apply for a LoC myself or do I have to use a registered filing agent? Does it cost something to apply for a LoC? If it is simple and cheap I'd like to try anyway and see for myself.
Strong Eagle wrote: ↑Wed, 18 Apr 2018 10:26 pm
a) Register a sole proprietorship in your name at ACRA: https://www.acra.gov.sg/components/wire ... ageid=1087
b) Apply for a LOC at
MoM: http://www.mom.gov.sg/passes-and-permit ... of-consent
Be prepared for an initial rejection. Have your documents ready. Appeal. Who knows what will happen. The latest posts from the forums have not been entirely encouraging.
Thanks for confirming sundaymorningstaple. After trawling through all the past articles I was so excited at having found a relatively straightforward way to freelance here - but looks like I'm too late.sundaymorningstaple wrote: ↑Fri, 06 Dec 2019 12:44 pmAs you can see by the ACRA direct link you posted, ACRA is a function of the Singapore Government .gov.sg being a designation reserved wholly for the Singapore Government. Therefore you can take it as having been legislated. This was done to close the loophole.
Completely understand @sundaymorningstaple. The information and advice from moderators on this site has been exemplary, and it was just a case of finding out what the latest regulations are. I have no desire to contravene any laws or loopholes which is why I was so enthusiastic about taking the Sole Proprietorship forward - just very disappointed that this avenue for DP's to work has now been closed. Time to start the job hunt!sundaymorningstaple wrote: ↑Fri, 06 Dec 2019 4:24 pmI think another of our readers is also having a similar problem. The problem is, when people find a loophole, they cannot help but brag about it, which causes the government to immediately close the loophole. Can't blame them. For the record, we do know, for a fact, that the MOM monitors this board. ICA may well monitor it as well (but no actual confirmation). I know the former for a fact as I've been contacted personally via the Admin here on two occasions whereby I was invited as a panel member on a CNA TV program regarding PRs (me also being one) and the other time at a sit down interview with one of MOM director's and a couple of his subordinates for a 20 or 30 minute interview that actually lasted almost 3 hours (in a friendly environment outside of the old Havelock Rd MOM office). This was because of our work on this forum and mine primarily with regards to my ideas on how to speed up the appeals process. This was a fair number of years ago, but what I am saying is the the MOM & ICA keep their ears to the ground. This is also why we tend to be straight shooters and do not brook any nonsense, generally speaking - we have a very good reputation and in fact before the last website revamp by the MOM, we were also listed as a link for additional information for two different subjects on the MOM site.
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