Nycsing wrote: ↑
Thu, 30 Jul 2020 2:50 pm
Hi, I have recently moved to Singapore on DP. I am a sole proprietor of a commodities business in operations for 12+yrs based in Delaware. I am trying to figure out best way to move from DP to my own EP on my business. Options include setting up a branch or subsidiary of my business and then employing myself. Or setting up a new company and employing myself.
I was wondering if anyone can recommend a firm who can advise me?
Another question I had was I recently entered on my IPA and my DP Card has not yet been issued, if I apply for EP does that automatically terminate my DP?
Any company you setup in Singapore is a "new" company, as your distinction between a branch or subsidiary or new is not valid.
Almost all companies that setup an office in Singapore do so as a private limited, with all shares (usually or 2) owned by the foreign parent company. These companies have their own Singapore articles of incorporation. I suppose you would call this a subsidiary.
Another option is the branch. This is where you incorporate you company using the articles of incorporation from your home incorporation. This is much more difficult to do, as your home articles must also meet Singapore requirements. You also lose certain beneficial tax treatments afforded private limited companies.
The last choice is a representative office, something rarely used, and whose purpose is to allow a company to come to Singapore to see if setting up a business is worthwhile. No actual commerce can be conducted, until one of the two entities above is formed.
As someone else has noted, you'll need to apply for an EP for your company, and you'll need to set yourself up as director. As you are already resident on a DP, you don't need to rent a director, if the accountant you engage correctly sets up the company with ACRA.
Large numbers of people try to finagle their way into Singapore by forming a company, and most fail because they don't have experience, track record, or money. If you've got a 12 year old business that is going to own the Singapore firm, you should be ahead of the game.
This means that you should be prepared with pro forma statements to show how you are going to earn your salary that you must be paid to keep an EP. Most applications fail because they specify a salary to be paid but neglect the revenue stream necessary to pay the salary.
I assume your commodities trading business means that you never take possession of commodities in Singapore. If you do, there are quite a few more steps involved to warehouse imports and exports.