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Easiest way form up small company as foreigner?

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Maestro_Rob
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Easiest way form up small company as foreigner?

Postby Maestro_Rob » Wed, 25 Oct 2006 4:42 pm

What is the easiest way to form up a small company in Singapore as a foreigner?
I just need a home office and be self employed. Jobs mostly coming from abroad. So, basicaly I need a permit to stay and get a bank acount, as well as a work permit.
Anybody knows the cheapest and most flexible way to set this up?
I went thru all the goverment boards and I'm total confused now...

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Strong Eagle
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Postby Strong Eagle » Wed, 25 Oct 2006 10:17 pm

You really want to set up a private limited firm to be taken seriously. And you will need to be taken seriously to get an Entrepass, the ticket to starting a business in Singapore.

You will need a local director and a secretary... many firms can supply this, including the one I use.

A private limited gives you advantages in application and makes it much easier to set up bank accounts, etc. It gives you a perceived "girth"

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Postby Maestro_Rob » Thu, 26 Oct 2006 12:34 am

You mean that i need to employ to people to run a company?

I mean isn't most interesting that someone is joining and pay tax?

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Strong Eagle
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Postby Strong Eagle » Thu, 26 Oct 2006 8:50 am

As a foreigner you need to file a business plan with MOM and that is also reviewed by SPRING. If you are successful you are issued an Entrepass.

Singapore encourages new business. Your first two years of profits are not subject to corporate tax, up to $100,000.

Again, you can file as a sole proprietorship but my sense is that you are viewed more seriously by forming a private limited company. The costs are not that high.

You don't need people to "run" the company but you do need a local director and a good secretary insures that you stay in compliance with the maze of forms and procedures... even if you are a sole proprietor. Such services will run you around $700 per year.

Again, do it anyway you want. But if you want to maximize your chances for approval and provide yourself with a legal firewall between your business and personal finances, a private limited is the way to go.

Read more at:

http://www.acra.gov.sg/company/index.html

http://www.mom.gov.sg/publish/momportal ... epass.html

Setting up a private limited gives you better credibility with the government, banks, and other businesses. I know. I did it.

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Postby southsea » Thu, 26 Oct 2006 6:53 pm

Maestro,I have been in Singapore 4 weeks now and I am STILL waiting
for my Entrepreneur pass to be authorised (in principle)... I went to MOM
today and I was told that it could take another 2 weeks.After this I told the lady that I would like to get setup for the
Christmas Business I was told she would try and speed things up. :cry:
Once I get this "in principle" letter I can set up a company and bank account etc...
and then I can be given my workpass on receipt of a bank
guarantee of 3000$, as I have no sponsor.
At least I think this is what will happen.
Like yourself,I will be working from home and supplying customers in Europe and the Usa with product.
Eagle I have written to you before,I think I may need your help on secretary etc and I do not mind paying.

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Postby Strong Eagle » Fri, 27 Oct 2006 9:39 am

Did you set up as a private limited or a sole proprietorship?

southsea wrote:Maestro,I have been in Singapore 4 weeks now and I am STILL waiting
for my Entrepreneur pass to be authorised (in principle)... I went to MOM
today and I was told that it could take another 2 weeks.After this I told the lady that I would like to get setup for the
Christmas Business I was told she would try and speed things up. :cry:
Once I get this "in principle" letter I can set up a company and bank account etc...
and then I can be given my workpass on receipt of a bank
guarantee of 3000$, as I have no sponsor.
At least I think this is what will happen.
Like yourself,I will be working from home and supplying customers in Europe and the Usa with product.
Eagle I have written to you before,I think I may need your help on secretary etc and I do not mind paying.

Maestro_Rob
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Postby Maestro_Rob » Fri, 27 Oct 2006 11:04 am

I think he has the same plan as me. Basically in the area of design you are used to work as freelancer in many countries.
So, no office, etc..
Also in that role you have travel a lot and need no staff, but other freelancers or small companys local. You are more like a supervising artdirector and Singapore really need such people, pushing the creative potential.

Yes, it would be very helpfull to get information about the 'director' thing and where to find one. Also I wonder why there is no community that helps people finding a start (beside this very good one).

I have also another idea. You can be employed by a company for a parttime job and if they agree to your secound work, then you get at least an S-Pass..

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Postby southsea » Fri, 27 Oct 2006 2:12 pm

Strong Eagle wrote:Did you set up as a private limited or a sole proprietorship?

southsea wrote:Maestro,I have been in Singapore 4 weeks now and I am STILL waiting
for my Entrepreneur pass to be authorised (in principle)... I went to MOM
today and I was told that it could take another 2 weeks.After this I told the lady that I would like to get setup for the
Christmas Business I was told she would try and speed things up. :cry:
Once I get this "in principle" letter I can set up a company and bank account etc...
and then I can be given my workpass on receipt of a bank
guarantee of 3000$, as I have no sponsor.
At least I think this is what will happen.
Like yourself,I will be working from home and supplying customers in Europe and the Usa with product.
Eagle I have written to you before,I think I may need your help on secretary etc and I do not mind paying.


Well,I would probably take your advice and register a private company.
However I cannot do anything yet until I get my initial "in principle"
from MOM ?
I cannot even find a bank that will let me start an account until I get this
letter.

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Strong Eagle
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Postby Strong Eagle » Fri, 27 Oct 2006 3:23 pm

Maestro_Rob wrote:I think he has the same plan as me. Basically in the area of design you are used to work as freelancer in many countries.
So, no office, etc..
Also in that role you have travel a lot and need no staff, but other freelancers or small companys local. You are more like a supervising artdirector and Singapore really need such people, pushing the creative potential.

Yes, it would be very helpfull to get information about the 'director' thing and where to find one. Also I wonder why there is no community that helps people finding a start (beside this very good one).

I have also another idea. You can be employed by a company for a parttime job and if they agree to your secound work, then you get at least an S-Pass..


Quite unlikely that you would get an S-pass. It is a controlled pass... must be 5 local workers on the payroll for every S-pass person.

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Postby Strong Eagle » Fri, 27 Oct 2006 3:29 pm

southsea wrote:
Strong Eagle wrote:Did you set up as a private limited or a sole proprietorship?

southsea wrote:Maestro,I have been in Singapore 4 weeks now and I am STILL waiting
for my Entrepreneur pass to be authorised (in principle)... I went to MOM
today and I was told that it could take another 2 weeks.After this I told the lady that I would like to get setup for the
Christmas Business I was told she would try and speed things up. :cry:
Once I get this "in principle" letter I can set up a company and bank account etc...
and then I can be given my workpass on receipt of a bank
guarantee of 3000$, as I have no sponsor.
At least I think this is what will happen.
Like yourself,I will be working from home and supplying customers in Europe and the Usa with product.
Eagle I have written to you before,I think I may need your help on secretary etc and I do not mind paying.


Well,I would probably take your advice and register a private company.
However I cannot do anything yet until I get my initial "in principle"
from MOM ?
I cannot even find a bank that will let me start an account until I get this
letter.


The way it works is that you must have a registered business when you apply for the Entrepass, but not for more than 6 months. See:

http://www.mom.gov.sg/publish/momportal ... _Pass.html

for information.

The business plan you submitted is critical to getting the Entrepass... can only be 10 pages but must show marketing plans, capital needs, break even, staffing, etc. Needs pro forma stmts for 3 years. Even if you don't have a capital intensive business you need to demonstrate that you have suficient capital to cover your own living costs until you are profitable.

If you think you need to add additional information, such as having a company incorporated, you can always file additional information with MOM.

You can PM or email me for the accounting firm I use. This firm also supplies nominee directors.

southsea
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Postby southsea » Fri, 27 Oct 2006 4:00 pm

Thanks Eagle,

There seems to be TWO ways to apply for the Entrepass :

1) is READY to start own business/company
2) already has business registered with ACRA.

As I am only READY to start I presumed I need the "in principle" letter
first.
Mom have my business plan - so fingers crossed.
Interestingly as a one man show - I cannot be a BUSINESS,only a COMPANY :-| .

I will mail you later if I need a secretary or not - this is getting confusing.
The way I see it,paying the 3000 $ bank guarantee makes me exempt
from needing a director/secretary.

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Postby Strong Eagle » Fri, 27 Oct 2006 5:59 pm

southsea wrote:Thanks Eagle,

There seems to be TWO ways to apply for the Entrepass :

1) is READY to start own business/company
2) already has business registered with ACRA.

As I am only READY to start I presumed I need the "in principle" letter
first.
Mom have my business plan - so fingers crossed.
Interestingly as a one man show - I cannot be a BUSINESS,only a COMPANY :-| .

I will mail you later if I need a secretary or not - this is getting confusing.
The way I see it,paying the 3000 $ bank guarantee makes me exempt
from needing a director/secretary.


Either way you do it you need the Entrepass... the letter just lets you go down to MOM and get your passport stamped... a half day affair.

I think that you can set up as a business entity if you want to (sole proprietorship). In this case you will need to supply a $3000 banker's guarantee, and as far as I know, all banks will want a $3000 non withdrawable deposit to issue the guarantee.

If you set up a private limited, you could get the local director to sign the company guarantee on the application form. As I write this, since the guarantee is part of the application I gather you have already submitted the guarantee?

The time for your application seems a bit long but not excessively so. The web site states a six week application process. They state 3 weeks for a regular EP and I've gotten two done in 10 days but then again, they don't have to go through SPRING for a regular EP.

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Postby Strong Eagle » Fri, 27 Oct 2006 6:02 pm

Southsea,

Just one other item. If I understand, you are working from home and you are selling product in Europe. If seems that you would be exempt from setting up a business or company under this rule.

2. Any business of a craftsman who -
(a) exercises his craft on his own domestic premises;
(b) does not display the products of his craftsmanship for sale in public; and
(c) does not employ any person other than members of his immediate family for the purpose of his business.

However, that still does not get you away from the problem of needing a legal visa to stay in Singapore and the only way to do that is with an Entrepass unless you are married to an EP, PR or citizen.

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Postby southsea » Sat, 28 Oct 2006 4:13 am

Eagle,thanx for advice as usual.
Mom told me that 6 weeks was normal,although the form said 3 weeks and to check with them after 4.
Anyway the procedure to see them was very quick and professional so no moans there.
I checked with a secretarial company near me and they said they would
set the company/bank account up for me... all for 670$ which sounds ok
to me.
I would like to work from home as I really do not need to set up anything
else up, even though I am buying product here which will be sent to Europe immediately...
The boxes arrive,I put new stickers on,customs paperwork written and off they go again... in theory.
It seems a BUSINESS is deemed not allowed from home,but a COMPANY is ok ? Whatever the difference is :?

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Postby southsea » Sat, 04 Nov 2006 8:14 pm

Well,after 5 weeks of waiting I got this one liner from MOM :

"we regret to inform you that the application is NOT successful"

So what do I do now - can I appeal,is there some way of pulling some strings ??

I thought I had a well constructed business plan - is there anyway I can
find out why I was turned down or do they not have to supply me this
information ?


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