Register a company as an LTVP holder

[iamsandy]

Im an LTVP holder and my wife is a PR.
We are planing to start a business in Singapore.. can someone explain me the process of me being a director of the company?
I already have a pre approved LOC from MOM which allow me to work in singapore ( apperantly it is not enogh to become a director of a company).


ps* - there is an old post regarding this matter but the things are not clear.

[Strong Eagle]

Im an LTVP holder and my wife is a PR.
We are planing to start a business in Singapore.. can someone explain me the process of me being a director of the company?
I already have a pre approved LOC from MOM which allow me to work in singapore ( apperantly it is not enogh to become a director of a company).


ps* - there is an old post regarding this matter but the things are not clear.

You are correct. You will need an EP to become a director of a company, and you will need to meet the minimum qualifications for an EP, including salary. Therefore:

You will need to form your company by using your PR wife as the original director. She has no limitations on jobs or directorships. Once the company is formed, she, as director, can request an EP for you, so that you, too, can be a director.

Here's the catch. You must be able to pay yourself the minimum salary to qualify for your EP. Therefore, your pro forma financials must show how you are going to pay yourself.

Since this is a startup business, one would typically do this.

1. Figure out how long it will take for your business to become profitable such that it can afford to pay your monthly salary and break even.
2. Multiply your salary times the number of months that you won't make enough money, and loan that money to the company... put it in a company bank account.

This won't guarantee that you'll get an EP but it will help a lot. There are many posts in these forums from people who wanted to start a company, told MoM that they would pay themselves $7000 per month, then could supply absolutely no documentation as to how they were going to pay that $7000 per month. They were summarily rejected.

Bottom line: If you're starting a company then you know that you expect to live off savings until you know it is profitable. Therefore, you loan your own money to the company so that you can be paid and live.

This also means that you need to prepare pro forma financial statements and a short business plan. Remember that a couple of decades ago, the gahmen absolutely screwed themselves by letting just about anybody start a business, whether or not they had the money or the experience. They are much more cautious now.

[iamsandy]

@Strong Eagle Thank you for the detailed reply.
What if I just join the company as an employee? (without being a director), because I already have the Pre approved LOC from MOM which has no minimum salary level.

[iamsandy]

Im an LTVP holder and my wife is a PR.
We are planing to start a business in Singapore.. can someone explain me the process of me being a director of the company?
I already have a pre approved LOC from MOM which allow me to work in singapore ( apperantly it is not enogh to become a director of a company).


ps* - there is an old post regarding this matter but the things are not clear.

You are correct. You will need an EP to become a director of a company, and you will need to meet the minimum qualifications for an EP, including salary. Therefore:

You will need to form your company by using your PR wife as the original director. She has no limitations on jobs or directorships. Once the company is formed, she, as director, can request an EP for you, so that you, too, can be a director.

Here's the catch. You must be able to pay yourself the minimum salary to qualify for your EP. Therefore, your pro forma financials must show how you are going to pay yourself.

Since this is a startup business, one would typically do this.

1. Figure out how long it will take for your business to become profitable such that it can afford to pay your monthly salary and break even.
2. Multiply your salary times the number of months that you won't make enough money, and loan that money to the company... put it in a company bank account.

This won't guarantee that you'll get an EP but it will help a lot. There are many posts in these forums from people who wanted to start a company, told MoM that they would pay themselves $7000 per month, then could supply absolutely no documentation as to how they were going to pay that $7000 per month. They were summarily rejected.

Bottom line: If you're starting a company then you know that you expect to live off savings until you know it is profitable. Therefore, you loan your own money to the company so that you can be paid and live.

This also means that you need to prepare pro forma financial statements and a short business plan. Remember that a couple of decades ago, the gahmen absolutely screwed themselves by letting just about anybody start a business, whether or not they had the money or the experience. They are much more cautious now.

Thank you for the detailed reply.
I think the best thing is for me to join the company as an employee with the PLOC I have, and when I grow the company I can get an EP and become a director.

Any Advice on that ?