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Ep hold

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luxembourg
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Ep hold

Postby luxembourg » Mon, 11 Mar 2019 1:24 pm

ep holds
Last edited by luxembourg on Wed, 20 Mar 2019 4:38 pm, edited 1 time in total.

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PNGMK
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Re: EP holder setting up an education firm in Sg

Postby PNGMK » Mon, 11 Mar 2019 5:17 pm

You can't work part time for another employer on an EP. That's why you're being asked to bill via a company which is fraudulent IMO.

And you have an MBA? Sheesh.
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PNGMK
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Re: EP holder setting up an education firm in Sg

Postby PNGMK » Mon, 11 Mar 2019 5:22 pm

IANAL. IANACPA. IANA Teacher.
Arrested? Lawyer Up
International School job? School website or http://www.ISS.edu
School advice? Avoid for profit schools
Tax advice? CPA
Pay me $5k for 100% success filling in PR form!

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Strong Eagle
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Re: EP holder setting up an education firm in Sg

Postby Strong Eagle » Mon, 11 Mar 2019 10:19 pm

  1. As an EP, you can set up a company and be its shareholder. Go to the IRAS website and use the Bizfile functions. You'll see what you need to have to setup the company. It's very easy. That's why you don't find shelf companies in Singapore.

  2. As an EP, you cannot be a director of your company since that implies you are working for that company and on an EP, you cannot work for more than one company (unless you are on a PEP).

  3. You cannot work for your company without an EP but you can't get the EP to work for your company since you already have an EP with another company. Even if you don't pay yourself a salary, you are working for the firm; you need an EP. Therefore, you can't teach part time and bill through the company as you are working for the company (why else would they be billing you?). Besides, IRAS doesn't like people who take all their profits in the form of dividends instead of taxable income. They keep lists of reasonable minimum incomes for all sorts of jobs.

  4. Your Singapore buddies are obviously not well versed in the responsibilities they will be taking on to become a director of your company. They are civilly and criminally liable for all acts of your company, including fraud, misrepresentation, and misreporting of taxes. This is why virtually no one will be a director, and for those companies that will rent you a director, they will demand to have access to all of your accounting transactions, your bank accounts, your EP applications, the works.

  5. If you have only a single director, then you must also have a company secretary. You would be advised to have one anyway unless you are well versed in the required regulatory and tax filings.

  6. In short, you are trying to do an end around the law which prevents you from working for two companies while on EP, and you're not the first one to try and sort out a scheme to do so. However, this is not legal and anyone who does become your director can be held liable for your actions.

If your existing employer were willing to bill you out as a teacher, then I suppose you would have a solution.

Edited after reading PNGMK's reference post: I judge that your company would need to be in some similar line of work to make this fly; however, this is not a legal requirement. When a company is registered it must select a commercial class code to describe its line of business but a company is free to undertake any other line of business. Were your company to do this, your income would be reported on your regular IR8A.


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