Starting Company in Singapore

[fay12]

Hello All,

I wanted to understand a few things about setting up a company in Singapore.

Currently I am on EP with a company and I was wondering how does it work if I decide to set up company here in Singapore (of course have a local director).

However my main concern is MOM as I plan to apply for my EP under the new company.

Has anyone applied for an EP during 2020.
Any idea on the salary scale and requirements.
What are the docs required ?
Is there an initial capital to be shown in the bank too ?

Thanks all.
Have a great day & stay safe.

[Myasis Dragon]

Hello All,

I wanted to understand a few things about setting up a company in Singapore.

Currently I am on EP with a company and I was wondering how does it work if I decide to set up company here in Singapore (of course have a local director).

However my main concern is MOM as I plan to apply for my EP under the new company.

Has anyone applied for an EP during 2020.
Any idea on the salary scale and requirements.
What are the docs required ?
Is there an initial capital to be shown in the bank too ?

Thanks all.
Have a great day & stay safe.

The short answer is: You're not going to be able to do what you want to do.

Reason: Thousands upon thousands of unqualified people have attempted to form a company, then get issued a work permit by their own company so that they can legally live and work in Singapore.

Your idea is nothing new.

In fact, the scammers got so bad that the government tightened qualifications to the point that not even qualified professionals could setup a legitimate business.

Things are better now, but even if you are legitimate, you have many hurdles to cross.

1. Do you have relevant experience and training in the business you wish to start?
2. Do you have a track record of running a successful business?
3. Do you have customers or contracts waiting for you when you start your business?
4. Is your business type on the list of business types that the government is trying to encourage and develop (this is good)?
5. Is your business type on the list of business types singularly reserved for Singaporeans (this is bad)?
6. Do you have a business plan that includes your break even date for profitability?
7. Do you have enough money in the bank to support yourself and your business until break even?

There are many things that will trip you up but the most common error is to specify a minimum salary to get your EP, then not show any revenues to cover that salary. You say that you're planning on paying yourself $5,000 per month? Then where are you getting $60,000 in cash to pay that salary?

You cannot work for another company while you are on EP, not even for your own company. Therefore, while you can become a shareholder of a Singapore company, and you can hire a rented director, you cannot officially do any work for it.

There are many posts on this topic, written by many who have tried... some succeeded, some failed. But, more have failed than succeeded.

Understand that Singapore doesn't really care if you get an EP with your own company or not. All they care about is the economic benefit that will accrue to its own citizens. If you're trying to start a company that hires Singaporeans, then maybe you have a shot. But, if you're starting a business that displaces Singaporeans from doing the same job, then you won't have much of a shot at all.

Read Strong Eagle's now dated post on the Entrepass. You wouldn't file for an Entrepass these days, but you will still want to meet all the criteria specified.

[fay12]

The short answer is: You're not going to be able to do what you want to do.

Reason: Thousands upon thousands of unqualified people have attempted to form a company, then get issued a work permit by their own company so that they can legally live and work in Singapore.

Your idea is nothing new.

In fact, the scammers got so bad that the government tightened qualifications to the point that not even qualified professionals could setup a legitimate business.

Things are better now, but even if you are legitimate, you have many hurdles to cross.

1. Do you have relevant experience and training in the business you wish to start?
2. Do you have a track record of running a successful business?
3. Do you have customers or contracts waiting for you when you start your business?
4. Is your business type on the list of business types that the government is trying to encourage and develop (this is good)?
5. Is your business type on the list of business types singularly reserved for Singaporeans (this is bad)?
6. Do you have a business plan that includes your break even date for profitability?
7. Do you have enough money in the bank to support yourself and your business until break even?

There are many things that will trip you up but the most common error is to specify a minimum salary to get your EP, then not show any revenues to cover that salary. You say that you're planning on paying yourself $5,000 per month? Then where are you getting $60,000 in cash to pay that salary?

You cannot work for another company while you are on EP, not even for your own company. Therefore, while you can become a shareholder of a Singapore company, and you can hire a rented director, you cannot officially do any work for it.

There are many posts on this topic, written by many who have tried... some succeeded, some failed. But, more have failed than succeeded.

Understand that Singapore doesn't really care if you get an EP with your own company or not. All they care about is the economic benefit that will accrue to its own citizens. If you're trying to start a company that hires Singaporeans, then maybe you have a shot. But, if you're starting a business that displaces Singaporeans from doing the same job, then you won't have much of a shot at all.

Read Strong Eagle's now dated post on the Entrepass. You wouldn't file for an Entrepass these days, but you will still want to meet all the criteria specified.

Thank you so much for this.
It clears a lot for me.
Wish you a Happy New Year and stay safe.