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EntrePass vs Employment Pass (P1)

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Oriental
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EntrePass vs Employment Pass (P1)

Post by Oriental » Fri, 22 Apr 2005 6:28 pm

Hi there,

My wife and I are planning to relocate to Singapore.

We are both citizens of a Scandinavian country, an EC member-state, and currently living there.

We both hold academic degrees; my wife a MA in rhetoric and communication, and I a MSc in economics.

I have started an e-commerce business that is now ready to go global. As I would like to start up the internationalisation process from a base in Singapore I have the following questions:

Is an EntrePass difficult to obtain ? What are the approval statistics ?

In case I were to set up a ltd. company in Singapore with an authorised, issued and paid up capital of S$ 100,000, is it then possible to obtain an Employment Pass (P1 pass) to work as a manager in that company ?

Other suggestions are more than welcome.

Looking forward to your feed-back.

Best regards,
John

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Post by Strong Eagle » Fri, 22 Apr 2005 7:46 pm

I have an Entrepass. It is nothing more than a P1 employment pass because they way they issue it is exactly as you said: You are working for your start up company, and can work for no one else.

When I submitted my business plan, it was 28 pages, with charts, pro forma statements, marketing plans, sales plan, comptetitive analysis, etc. They now limit the plan to 10 pages maximum I believe. Check the MoM website for details. http://www.mom.gov.sg/MOM/CDA/0,1858,12 ... --,00.html

As to pass rates and criteria... this is closely guarded by MoM. However, my guess is that if you have

a) experience and credentials
b) a plan that introduces technology, management skills, or jobs into Singapore
c) some money to invest and a demonstration that you can support yourself

I'll bet you get approved. It's just my own gut feel but older white guys with experience, a degree, and some money are a relative shoo in unless you are simply incapable of writing a coherent business plan.

I'd focus on the technology you are going to bring, and be sure to empahsize the taxes your company will pay. No one actually checks to see if you deposit a hundred thousand dollars, if that is what the plan says. OTOH, there are bright people at MoM and if your projections, market, sales, and financials aren't coherent, you could have problems.

You will probably want to set up a private limited company but you don't want to put in $100,000 of paid up capital. Much better to create $2 company and loan the rest of the money to the company. Much easier to get it back out.

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Post by Oriental » Sat, 23 Apr 2005 6:36 pm

Dear Strong Eagle,

Thank you for your advice.

Good point with the loan and paid up capital. In my home country the laws are a bit different as the authorised capital has to paid up in full in order for the company to commence business. I will of course consult a lawyer and a accountant to clarify in more details the incorporation of my company.

In case you can recommend a good lawyer (also immigration) and accountant I would be much obliged.

Have a nice day,
John

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Post by Strong Eagle » Sat, 23 Apr 2005 8:01 pm

1) There are reasons to go with paid up capital and even though I currently have a $2 company, I will probably change that shortly because I need to look stronger to potential clients who will evaluate my financial condition... having a couple hundred thousand shares in a private company does look better than two dollars.

2) I have an excellent certified accountant that knows every last thing about about doing a business here... including employment passes. She has provided great value to my company. PM me if you want details.

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HElp!

Post by richie » Fri, 29 Jul 2005 11:53 pm

Strong Eagle i would be intested on hearing your thoughts.

I am looking to live in Singapore. I don't want or need a job (as I work on the Internet and have income and assets I can use to live as i trade shares). I just want to live there. Do you know how I can get residency or a permit to live there without needing to have a job?

Is it possible to set up a business/company and pay myself a salary in Singapore. I have also heard about the an approval-in-principle employment pass.

Why I be better off taking with your accountant?

Many thanks

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Post by fx8fx » Sat, 08 Oct 2005 7:44 pm

Strong Eagle wrote:I have an Entrepass. It is nothing more than a P1 employment pass because they way they issue it is exactly as you said: You are working for your start up company, and can work for no one else.

When I submitted my business plan, it was 28 pages, with charts, pro forma statements, marketing plans, sales plan, comptetitive analysis, etc. They now limit the plan to 10 pages maximum I believe. Check the MoM website for details. http://www.mom.gov.sg/MOM/CDA/0,1858,12 ... --,00.html

As to pass rates and criteria... this is closely guarded by MoM. However, my guess is that if you have

a) experience and credentials
b) a plan that introduces technology, management skills, or jobs into Singapore
c) some money to invest and a demonstration that you can support yourself

I'll bet you get approved. It's just my own gut feel but older white guys with experience, a degree, and some money are a relative shoo in unless you are simply incapable of writing a coherent business plan.

I'd focus on the technology you are going to bring, and be sure to empahsize the taxes your company will pay. No one actually checks to see if you deposit a hundred thousand dollars, if that is what the plan says. OTOH, there are bright people at MoM and if your projections, market, sales, and financials aren't coherent, you could have problems.

You will probably want to set up a private limited company but you don't want to put in $100,000 of paid up capital. Much better to create $2 company and loan the rest of the money to the company. Much easier to get it back out.

:mad: so great post should be highlighted and copied to forum " Business in Singapore .

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Post by fx8fx » Sat, 08 Oct 2005 8:03 pm

Strong Eagle wrote:1) There are reasons to go with paid up capital and even though I currently have a $2 company, I will probably change that shortly because I need to look stronger to potential clients who will evaluate my financial condition... having a couple hundred thousand shares in a private company does look better than two dollars.

2) I have an excellent certified accountant that knows every last thing about about doing a business here... including employment passes. She has provided great value to my company. PM me if you want details.
Hi Strong Eagle , do you means Tan Saw Bin know the process of EntrePass also ? As I dont have want to have local share holder also .

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Post by Strong Eagle » Thu, 13 Oct 2005 8:01 am

fx8fx wrote:
Strong Eagle wrote:1) There are reasons to go with paid up capital and even though I currently have a $2 company, I will probably change that shortly because I need to look stronger to potential clients who will evaluate my financial condition... having a couple hundred thousand shares in a private company does look better than two dollars.

2) I have an excellent certified accountant that knows every last thing about about doing a business here... including employment passes. She has provided great value to my company. PM me if you want details.
Hi Strong Eagle , do you means Tan Saw Bin know the process of EntrePass also ? As I dont have want to have local share holder also .
I am sure that she knows the mechanics of filing for an Entrepass since it is very straightforward and documented on the MOM website.

But it is really you that must come up with the business plan. It is your judgment of markets and your marketing strategy that defines the business. An accountant can be useful in preparation of pro forma financial statements but you must really do the legwork first. How big is your market? What can you sell for? What are your costs? Realistically, you should have a good handle on these items.

As for your comment, "As I dont have want to have local share holder also", you don't need to have a local shareholder, you need to have a local director. While a director can most certainly be a shareholder, the two are completely different entities.

Finally, although an Entrepass is mostly like an EP, there is one difference. Your renewal is avaluated not on the salary you are making but on the progress your new company has made. Included in the criteria are sales, hiring, and how much capital has been put into the company. So, I've put money into the company in the form of paid up capital as opposed to advancing loans.

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Post by fx8fx » Fri, 14 Oct 2005 11:09 pm

tks a lot Strong-Eagle :)


Btw, wonder whether Entre-Pass holder would get a SG ID ? so there is no need to bring passport every day :)

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Post by Strong Eagle » Fri, 14 Oct 2005 11:17 pm

fx8fx wrote:tks a lot Strong-Eagle :)


Btw, wonder whether Entre-Pass holder would get a SG ID ? so there is no need to bring passport every day :)
Yes, you get your green card and multiple entry visa stamped in your passport just like any other EP. Your FIN (foreign immigrant number?) gets you Singpass and is used for drivers license, etc.

But... even though it is not required banks are notorious about still wanting passports for opening accounts, etc. Seems to me that the only thing the green card is good for is having to present it at immigration along with your passport when travelling in and out of the country.

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