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small business from home

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SingRed
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small business from home

Postby SingRed » Wed, 06 May 2009 8:50 am

Hi,

Reading the Sticky above about the Entrepass was really helpful but planning to start up a small business from home, which I’m hoping to run concurrently with my full time job. I’d be really grateful for any advice I could get on the following:

1. I’m on a PEP, is that sufficient to start up a company?
2. Am I obliged to declare this to my employer? Would rather not obviously.
3. Is it totally necessary to use an Accountant to incorporate the company? Keen to avoid the cost
4. Do I need a company bank account etc ?
5. I have no idea if it work out how much time I can spend on this so it possible to just have the company lying open but dormant so to speak?
6. Is it possible to incorporate a Company in the UK & trade here?
7. Not planning to have any employees other than myself so do I need insurance, register for tax etc ??

Apologies if I’m asking the obvious here but I’m a complete Singapore & starting a new business novice.

Cheers in advance

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jpatokal
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Re: small business from home

Postby jpatokal » Wed, 06 May 2009 5:25 pm

SingRed wrote:1. I’m on a PEP, is that sufficient to start up a company?


No. You must have a PR or an Entrepass. http://www.acra.gov.sg/Services/Busines ... siness.htm

Alternatively, you can recruit a Singaporean/PR as a director and use them as a front to register a Pte Ltd, but you'd better trust them (and they'd better trust you).

The rest assumes you get around this somehow:

2. Am I obliged to declare this to my employer? Would rather not obviously.

No.

3. Is it totally necessary to use an Accountant to incorporate the company? Keen to avoid the cost

No. It's dead easy. You will, however, want an accountant to do the books and taxes, which will set you back min. $1000/yr.

4. Do I need a company bank account etc ?

Would be tough to manage the finances without one, no? They don't cost anything to set up or keep.

5. I have no idea if it work out how much time I can spend on this so it possible to just have the company lying open but dormant so to speak?

Yes.

6. Is it possible to incorporate a Company in the UK & trade here?

Not legally.

7. Not planning to have any employees other than myself so do I need insurance, register for tax etc ??

Insurance, no. Corporate tax, yes. VAT, CPF or anything else, no.
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SingRed
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Postby SingRed » Thu, 07 May 2009 3:27 pm

Thanks for the reply, appreciated. Especially so as see this has been well covered further down board.

Just trying to find out best wee way to run a wee biz from home without alerting who I work for by changing visa etc.

Thought Sing was pro this type of thing !

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Postby Strong Eagle » Thu, 07 May 2009 3:57 pm

SingRed wrote:Thanks for the reply, appreciated. Especially so as see this has been well covered further down board.

Just trying to find out best wee way to run a wee biz from home without alerting who I work for by changing visa etc.

Thought Sing was pro this type of thing !


Singapore is not 'pro' carrying on other jobs or endeavors while on an EP (or for that matter an S pass or work permit).

If you incorporated a business elsewhere and if all its financial transactions occur elsewhere then you can run that business without issue.

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jpatokal
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Postby jpatokal » Thu, 07 May 2009 4:54 pm

Strong Eagle wrote:Singapore is not 'pro' carrying on other jobs or endeavors while on an EP (or for that matter an S pass or work permit).

But is it legal? That is, is an EP holder allowed to freelance or moonlight at a second job, and is a Pte Ltd allowed to buy services from an EP holder not tied to that company? Couldn't find a straight answer on this...
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Strong Eagle
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Postby Strong Eagle » Thu, 07 May 2009 5:34 pm

jpatokal wrote:
Strong Eagle wrote:Singapore is not 'pro' carrying on other jobs or endeavors while on an EP (or for that matter an S pass or work permit).

But is it legal? That is, is an EP holder allowed to freelance or moonlight at a second job, and is a Pte Ltd allowed to buy services from an EP holder not tied to that company? Couldn't find a straight answer on this...


JP, this came up once before I cannot find the cite... but an EP can only work for the company than provided the EP. So, I suppose that the OP could start a fly by night company and deposit checks in his own name into his personal account but I see no way he could ever open a company bank account without a company registration and I see no way he could get that registration with an EP.

Well... I should take back my last statement... an EP can be a director of a private limited... whether she/he could form it I don't know... but I don't think an EP could register a business.

Assuming the OP doesn't have male kids to worry about, why not get a PR and solve all the problems?

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jpatokal
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Postby jpatokal » Fri, 08 May 2009 11:01 am

Strong Eagle wrote:JP, this came up once before I cannot find the cite... but an EP can only work for the company than provided the EP. So, I suppose that the OP could start a fly by night company and deposit checks in his own name into his personal account but I see no way he could ever open a company bank account without a company registration and I see no way he could get that registration with an EP.


But let's say the OP's Singaporean buddy has a Pte Ltd. Can that company legally hire the OP to do freelance/contract work for them? (That is, instead of the OP directly running his own business, he gets his customers to pay Buddy Pte Ltd, and Buddy Pte Ltd pays him.)
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Postby sundaymorningstaple » Fri, 08 May 2009 12:39 pm

jpatokal wrote:
Strong Eagle wrote:JP, this came up once before I cannot find the cite... but an EP can only work for the company than provided the EP. So, I suppose that the OP could start a fly by night company and deposit checks in his own name into his personal account but I see no way he could ever open a company bank account without a company registration and I see no way he could get that registration with an EP.


But let's say the OP's Singaporean buddy has a Pte Ltd. Can that company legally hire the OP to do freelance/contract work for them? (That is, instead of the OP directly running his own business, he gets his customers to pay Buddy Pte Ltd, and Buddy Pte Ltd pays him.)


The OP is not allowed to perform any work for anybody or company in Singapore other than the one that is listed on his EP. He also cannot work for a foreign company (say in Australia) if that company has a business entity here in Singapore. He can, however, freelance for a foreign company overseas as long as he doesn't receive any money's here in Singapore and does not perform any business transactions with Singapore companies or individuals. (Which means he cannot contact a local company on behalf of his Australian company that he is freelancing for). He can do things like writing articles or designing, etc. for the Australian company. I had checked on this earlier this year. That was the cite that SE was referring to. I can't find it either at the moment. :? (nor can I find the email on my pc from MOM!!!)


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