UPDATE - Freelancing while on dependent visa

[padma0506]

Hello

I am a dependent pass holder and my husband is an employment pass holder. I am an instructional designer and want to explore opportunities to start working as a freelance Instructional designer. Is that possible while being a DP holder?

Would also appreciate any leads on getting some freelance ID opportunities.

Thanks in advance.

[sundaymorningstaple]

Unless the rules have changed recently, you cannot freelance on a DP. You can however work for any employer who will apply for a "Letter of Consent" from the MOM. The LoC will be tied to your spouse's EP and will expire on the same time as his EP expires and can be renewed simultaneously with the spousal EP. The obviously problem with this arrangement is if your spouse is retrenched it is a double blow as you also lose your employment as well. As the only way you can work while on a DP is with the LoC, this would preclude any freelance work as you can only work for one employer at a time. You need to be either a Citizen or a PR to work as a self-employed person.

sms

[Strong Eagle]

I think a DP can also be a director of a private limited company so she could create her own company to freelance. Probably could do it under sole proprietorship rules as well.

[padma0506]

Thanks a ton for taking time out to respond.

It really is very disappointing to know that i cannot freelance being DP. Actually i received an offer to freelance from an Instructional design firm, but the moment they heard that i am neither a PR nor citizen, they replied that they would get back to me, with an answer whether i can go ahead or not. But now i think the chances are flimsy.

It is very frustrating, since i have been applying for jobs for the last one year and have not heard from anybody, though i have more than 10years of work experience in Leading Banking BPO's in india like Bank of America and HSBC, in the capacity of Manager, Learning and Organisational Effectiveness.

Anyway we now have a date in July to submit our docs for the PR.....so may be hopefully before this year end we should be PR's.

Thanks a ton again guys

[sundaymorningstaple]

SE,

I find that confusing as well from reading the ACRA site:

[quote]Foreigner wants to Register a Business

Under the Singapore Immigration Regulations, foreigners who are not permanent residents of Singapore but wish to engage in any form of business in Singapore must apply for an EntrePass. The EntrePass is issued by the Work Pass Division of Ministry of Manpower (MOM).

This one you know well!

What is an EntrePass?

The EntrePass is an Employment Pass for foreign entrepreneurs who would like to start a business entity (business, company or limited liability partnership) in Singapore and who would be actively involved in the operations of the business entity.


Eligibility
This procedure applies only to foreigners intending to be actively involved in the day-to-day operations of the business entity and to business firms where no local manager has been appointed.

On the other hand, if you do not wish to be actively involved in the running of the business, you need not apply for an EntrePass. You may continue to reside outside Singapore. However you will need to appoint a locally resident manager (business firm and limited liability partnership) or a locally resident director (company). “Locally resident”

[Strong Eagle]

Agreed, SMS... I will contact them and find out.

Cheers.

[Strong Eagle]

I contacted the ACRA regarding these questions and the answer is: As a person on a dependents pass you can register a business and/or set up a private limited. Thus, you can indeed freelance with your own business.

My questions and the ACRA answers are found below.

Can a person legally in Singapore on a Dependents Pass register a business as a sole proprietorship and then run that business actively?

ACRA - A dependent pass holder can be eligible to setup a business.

Can a person on a Dependents pass form a private limited company as a sole director and with the intent to actively manage? Thank you.

ACRA - Pertaining to your second question, an individual must fulfill the below criteria before he/she can proceed to incorporate a company.
1. Any person above the age of 18 years (with effect from 1 March 2009) can incorporate a local company.
2. A company may have only one director who must be “ordinarily resident in Singapore”

[sundaymorningstaple]

Very interesting.

Looking at the link though, it still may be in need of some further clarification regarding setting up a Pte Ltd company though.....

Taken from the chart under "Company"

* At least one shareholder
* Any person above the age of 18 years
* At least one director ordinarily resident in Singapore
* If a foreigner wishes to act as a local director of the company, he can apply for an Employment Pass from the Work Pass Division of the Ministry of Manpower under the Entre Pass scheme

But I guess ACRA is using a different set of meanings for the term foreigner. It still would seem in this case that a Dependent Pass holder would still need to use the Entre Pass scheme. That is, unless they don't consider Dependent Pass holders as foreigners?

SE, I think you should make this one a sticky as well.

[OogieBoogie]

it's kind of a breakthrough.
Thx for asking the question SE. I really didn't understand why DP couldn't start their own business, but according to the answer you received, DP can actually create a company! It's really interesting.

[ksl]

When i enquired about setting up a business freelancing on dependant pass, with MOM, they just told me to register with Acra and I had 6 months to comply, in that time limit, i was expected to submit the business plan, simply because you are not resident until you have stayed over the 183 day period.

A dependant pass holder can start their own business, although i believe you will find it's a formality, that you convert to entre pass when your business plan is submitted....it may be rejected if it doesn't follow the criteria....but you still wouldn't lose your dependant status until it was converted to entrepass.

Income earned outside of Singapore is tax free and a carrot to recruit the wealthy to Singapore, that have operational business in their home Countries.

[Strong Eagle]

When i enquired about setting up a business freelancing on dependant pass, with MOM, they just told me to register with Acra and I had 6 months to comply, in that time limit, i was expected to submit the business plan, simply because you are not resident until you have stayed over the 183 day period.

A dependant pass holder can start their own business, although i believe you will find it's a formality, that you convert to entre pass when your business plan is submitted....it may be rejected if it doesn't follow the criteria....but you still wouldn't lose your dependant status until it was converted to entrepass.

Income earned outside of Singapore is tax free and a carrot to recruit the wealthy to Singapore, that have operational business in their home Countries.

I have written to MOM requesting clarification of the DP/EP/Entrepass issue.

[Strong Eagle]

I was contacted by MOM today regarding running a business on a dependents pass.

The person on a dependents pass, as noted earlier, can register a business (sole proprietorship) or form a private limited as the sole director.

The person must then contact MOM for a letter of consent, and once the letter of consent is received the person is free to run the business.

As with the Entrepass, 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 a letter of consent.

A person's DP will still expire at the same time the supporting EP expires. A person who is making sufficient income and wishes to become independent of the supporting EP should consider filing for their own EP.

[ching]

Thanks for the update - that's very helpful!

We've got a friend who's here in Singapore on a DP. Since the economy tanked it's tough finding regular jobs but this could pave the way for him to at least earn some cash on the side.

[CrystalWater]

Strong Eagle... Firstly, i wld like to say a big thanks for your informative posts.. I have spent the last week reading them trying to work out my situation as I have been given conflicting advice.

I am on a dependants pass (hubby on a PEP), which if I understand correctly, i am able to set up a company.

Would you be able to help me with the following queries...

* if i setup a company, could i eventually hire other employees to work with me (locals and/or expats?) I just thought being on a dependants pass I would not have the authority to do so ??

* cld that mean that if my business took off, I could one day hire my husband to work for me (as he is on a PEP, not EP)

Thank u!!

[Strong Eagle]

Strong Eagle... Firstly, i wld like to say a big thanks for your informative posts.. I have spent the last week reading them trying to work out my situation as I have been given conflicting advice.

I am on a dependants pass (hubby on a PEP), which if I understand correctly, i am able to set up a company.

Would you be able to help me with the following queries...

* if i setup a company, could i eventually hire other employees to work with me (locals and/or expats?) I just thought being on a dependants pass I would not have the authority to do so ??

* cld that mean that if my business took off, I could one day hire my husband to work for me (as he is on a PEP, not EP)

Thank u!!

Yes, you can hire other employees, subject to all normal rules and regulations.

If you business took off, you could hire your husband. However, things could get complicated since it is his PEP that supports your DP. If your business takes off, I would apply for my own EP first.

This part of the equation is still open. Should have more information in a while.