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How to set up own biz in Singapore?

Discuss your views about Singapore business & economy, current policies & issues, starting a business in Singapore.
andrzej
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How to set up own biz in Singapore?

Postby andrzej » Mon, 09 Jun 2008 3:32 am

Hi all,

I'm from Europe and is very much interested in setting up my own company in Singapore but its hard cos I'm not familiar with the laws there,heard its pretty strict!
Would appreciate if anyone could help me out on this.Where do I go once I get to Singapore,what do I do first to set up my own company?I am looking at settling down there by the end of the year.
Please help.

Thanks!
Andrzej

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Postby Strong Eagle » Mon, 09 Jun 2008 7:19 am

Uhhh, maybe you could READ the second thread in this forum entitled:

Starting a Business in Singapore and the Entrepass

http://singaporeexpats.com/forum/ftopic38927.html

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Postby Winxkid » Mon, 09 Jun 2008 2:47 pm

Step 1 - Do You wanna setup as a foreigner or a foreigner with Employment pass?

As a Foreigner ONLY - Minimum requirement for registering a business firm, LLP or Pte company is at least 1 Singapore director. So, You can only get a Singaporean friend, a foreigner with Entrepass/employment pass or Dependent pass.

As a Foreigner who wish to own a company alone or with other foreigners. - Get a Approval-in-Principle from Singapore Ministry of Manpower and go ahead to apply for it online. Best is to engage a professional firm but charges might range up to 1,000 over dollars.

Rational being : You need a Singapore Personal Access (SINGPASS) to register online as all registration has to be done online. Professional firms has their own professional numbers to help you register online and at the same time, give You a specialized advise to Your needs. You might engage DP Burea, a business firm recommended by ACRA.


Second, knows where Your business nature come under. Choosing the right SSIC code ensure You does not get referred to other authority for approval when Your business does not require it.

Other regulation that can better help you choose your business entity.

A business firm(no suffix, just Biz Reg. Number) -
No annual filing of revenue required.
Is not a legal entity by it's own and cannot sue or be sued under it's name.
Owner/s bear full liability.

Limited Liability Partnership (suffix with LLP after name of entity)
No annual filing required using XBRL
LLP Solvent - Just need to do Annual Declaration without filing of accounts.
LLP Insolvent - Annual Declaration with filing of accounts in PDF form, without audit.
Liability is the same as a Private company(Pte Ltd)
Disadvantage is it's hard to get loan/s compare to Pte Ltd.
Asset does not need to be zerolize to strikeoff.

Private Company limited by Shares (normal Pte Ltd)
-Annual filing required, and audited unless You are a Exempt Private Company (EPC)
-You need to hold Annual General Meeting every year or within the first 18-months.
of cos, the rest of the details, tell me what You need =)


Others
If You are importing or exporting, need to get a CR number from ICA after registering your business.
petsgdirectory.blogspot.com

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Postby Strong Eagle » Mon, 09 Jun 2008 2:53 pm

If he is going to move here, start a business here, and live here, he needs to have an Entrepass. Period. End.

Trying the trick of starting a company and then applying for a regular EP probably won't work because MOM requires a company with a track record to apply for an EP.

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Postby Winxkid » Mon, 09 Jun 2008 2:59 pm

haha not so... actually...

You jus need to get the AIP from MOM first. Employment pass is harder to apply, while Entrepass is easier to apply but there's disadvantages too.

Go straight to ICA, tell them You need to get AIP to startup own business.

The requirement for AIP is, you must show action or prove that You are staying here for long. :D
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Postby Strong Eagle » Mon, 09 Jun 2008 3:27 pm

Winxkid wrote:haha not so... actually...

You jus need to get the AIP from MOM first. Employment pass is harder to apply, while Entrepass is easier to apply but there's disadvantages too.

Go straight to ICA, tell them You need to get AIP to startup own business.

The requirement for AIP is, you must show action or prove that You are staying here for long. :D


Yeh, well... if it was so easy to do then there would be 1,000,000 Asians of every race and creed starting a business, getting an AIP, and moving to Singapore under the pretense of starting a business.

Allowing such a thing to happen would make a complete mockery of the whole purpose of the Entrepass... judging the fitness of an individual to start a company in Singapore with some probability of success.

The Entrepass is not 'easier' than an EP; the two are judged on completely different merits and there is much more work involved in properly preparing an Entrepass application.

'Staying here for long' is not something the government would be interested in having you do if you cannot support yourself.

Besides, you talk about an AIP, which I assume is an approval in principle letter, but fail to state for what type of visa. So, what type of visa? And from whom? MOM issues AIP for work passes, employment passes and Entrepasses. ICA issues visas for students, certain business trips, and social visits.

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Postby Winxkid » Mon, 09 Jun 2008 3:41 pm

I'm sorry. AIP from MOM, a honest mistake.

To prove that You are here to to setup business and You are feeding yourself, that's where AIP comes into, isn't it?

if You do not have a AIP to start with, how are you going to prove? hmm... make sense to You?
petsgdirectory.blogspot.com

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Postby Winxkid » Mon, 09 Jun 2008 3:49 pm

Got it from MOM. Tje workflow

[\Quote]
# On 21 Jun 99, a new procedure that streamlines business or company registration by foreigners will be implemented. The procedure is the result of a joint effort by the Registry of Companies and Businesses (RCB) and the Employment Pass Department (EPD) of the Ministry of Manpower (MOM).

# Under the new procedure, a foreigner who intends to become a business owner cum manager needs to apply for and obtain an "Approval-In-Principle Employment Pass" from the Employment Pass Department before proceeding to the RCB for business registration. The procedure will also apply for foreigners who want to become 1local managers, local company directors or agents for foreign companies. Prevailing conditions pertaining to the P,Q work pass system shall continue to apply for the grant of "Approved-in-Principle Employment Pass".

# However, issue of an Employment Pass (EP) is subject to the foreigner successfully registering the business or company. The Employment Pass Department will process the EP application within two weeks of receipt of the registration certificate issued by RCB.

# Previously, to apply for an EP, a foreigner needs to have his business registered with RCB. There were instances when the foreigner was unable to secure an EP after having registered his business. Although a foreigner can form a partnership and register a business without an EP by having a local partner, there were also cases where a foreigner was unable to find a local partner, making it impossible for him to set up a business here. In other situations, a foreigner who successfully registers a business with a local partner may not qualify for an EP and hence would not be able to operate the business. The RCB and EPD are therefore streamlining the procedures for greater efficiency.

# For further enquiries on the new procedure, the public can contact the:
Registry of Companies & Businesses (RCB) at Tel: 325 3731
Employment Pass Department (EPD) at Tel: 297 5443
[\Quote]
petsgdirectory.blogspot.com

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Postby Winxkid » Mon, 09 Jun 2008 3:54 pm

Application Process



1.
Submit the EntrePass application format any SingPostpost office.

An administrative fee of $40 will be charged for each EntrePass application. Payment can be made using cash, NETS or CashCard;

2.
A successful applicant will be issued an Approval In-Principle (AIP) letter. He/she is to register the company/business with the Accounting and Corporate Regulatory Authority (ACRA);

3.
Upon receipt of the company's Business Profile/Instant Information with ACRA, the applicant needs to send/fax the following documents to the Work Pass Division for processing of the EntrePass:

- A copy of the company's Business Profile/Instant Information; and
- Approval In-Principle Letter.


The grant of an EntrePass by the Work Pass Division does not guarantee that:

*
The application for registration of a company/business will be approved by the ACRA.
Such applications will be processed based on ACRA's criteria.

*
Any licences required for the establishment of the applicant's business will be approved by the relevant licensing bodies.
EntrePass holders have to apply separately for the required licences.


by the way, please be advise that proposed business venture must not be engaged in illegal activities. In addition, businesses not of an entrepreneurial nature (e.g. coffee shops/hawker centres/food courts, foot reflexology/massage parlours, karaoke lounges, money changing/remitting, newspaper vending, geomancy and tuition services etc) will not be considered for an EntrePass.
petsgdirectory.blogspot.com

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Postby Strong Eagle » Mon, 09 Jun 2008 3:57 pm

All the above means is that the government wants to stop wasting time and resources by registering companies to a person who will never be granted an EP. There is nothing 'easier' about going this route. You will still be judged on your ability to run a business and the ability of the company to prove up that they cannot hire a local to do the same thing.

Note also from MOM:

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

"- The applicant must be sponsored by a well-established Singapore-registered company, normally the applicant's employer. "

So how exactly would a brand new company, with no revenue history, qualify for the above?

I'll say it again. If it were so easy to do, Singapore would be completely flooded with 'fake' businessmen, creating companies and getting that easy AIP. But it doesn't work that way.

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Postby Winxkid » Mon, 09 Jun 2008 5:08 pm

Relax Eagle,
That's why they issue AIP. It's meant for those who doesn't qualified for a EP -). After You got Your AIP, you can go ahead to register and You get back to MOM after a few months with Your business profile with accounts as supporting evidence. AIP is granted on a 1-year basis so I believe an applicant will have lotsa time to prove that the business is here for long :D

Applying for EP will takes up to 2-months. To make the process painless, You have to get a residential address, knows the trade you are dealing with and a reference :D

After 1 year since incorporation, You can go ahead and exchange for a Employment Pass :D
petsgdirectory.blogspot.com

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Postby Winxkid » Mon, 09 Jun 2008 5:12 pm

Strong Eagle wrote:All the above means is that the government wants to stop wasting time and resources by registering companies to a person who will never be granted an EP. There is nothing 'easier' about going this route. You will still be judged on your ability to run a business and the ability of the company to prove up that they cannot hire a local to do the same thing.

Note also from MOM:

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

"- The applicant must be sponsored by a well-established Singapore-registered company, normally the applicant's employer. "

So how exactly would a brand new company, with no revenue history, qualify for the above?

I'll say it again. If it were so easy to do, Singapore would be completely flooded with 'fake' businessmen, creating companies and getting that easy AIP. But it doesn't work that way.


haha, just tune your mindset to a Singaporean's one will do the trick :wink:
petsgdirectory.blogspot.com

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Postby Strong Eagle » Mon, 09 Jun 2008 9:15 pm

Ha-ha - ok - whole Entrepass scheme is bullsh*t. Just drop in, get some sort of AIP, and presto, got Sing business, ya?

Got it. Believe it? No.

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Postby Winxkid » Mon, 09 Jun 2008 9:47 pm

Cool dude.

Okie, to put it in a simpler way,

The validity of Entrepass is shorter than EP. EP needs to be renewed every 2-5yrs (on case-to-case basis) while Entrepass (1-2yrs).

They are totally two different vehicles in the first place. EP is initially designed for foreigner to work here as employee that's why when it comes to issuing it to business owners, it tends to be tedious and takes longer time.

Whereby Entrepass is designed for foreigner/s with who plans to setup business here already. They come in, apply for AIP, register, change to Entrepass - apply for dependent pass for family members. The process is also shorter (14-days to 6 weeks).

AIP is just a temporary pass for thsoe eager to startup. AIP has no validity and as long as You failed to prove your business has potential, they will take it away anytime.

Lastly, I don't know why are people scratching their heads when they can just go down to MOM and request for one-to-one guide?


P.S: I'm just here to share and give my view and not here to take up some heated argument :D And in regard to how hard or easy it is to apply, it is purely a person's own opinion and rumors he or she heard from others as there's no official statement or statistic to show that general public shares the same opinions. =)

------------------------------------------------------------------
Just arrive in Singapore and wanted to startup a business of your own immediately? - Get Entrepass (Require BP)
petsgdirectory.blogspot.com

andrzej
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Thank you!

Postby andrzej » Tue, 10 Jun 2008 12:02 am

Hi all,

Thank you so much for all your replies,they are very informative!I have a close friend living in Singapore,will discuss this with her and we'll see how it goes.Thanks again for all your replies.
I'm not so sure of the laws there for businesses etc,so rest assurred that I will back here asking you guys again lol!

Thanks!
Cheers


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