UPDATE - Freelancing while on dependent visa

[CadenceM]

Sigh... this thread was going so well but then seemed to go wrong from about February...

(Firstly though, incredible - and incredibly detailed - advice: kudos)

So, I have an EP and am here on assignment to a large MNC. My wife has a DP and back home was a fully qualified Personal Trainer in spare time between bringing up 2 kids. She would like to do more of this given children are growing up and a Helper will ... err... help with logistics. PT is an acceptable occupation according to MOM website, so that's fine. So I have two questions:

- Can she set up business as a sole proprietor and ask my employer to apply for a LOC? While she is a professional and will hopefully pick up a fair few clients (several new contacts have already enquired, which is nice), this is essentially a fairly ad hoc job for her and she does not need to bust a gut to pay the bills with it, so she is unlikely to be a primary driver of the country's tax revenues any time soon. She also won't have a 'Basic' or 'Fixed' salary, being self-employed and with somewhat erratic income, which are fields that need to be filled in on the LOC application form (so what does she say there??)...

- If so... what is the process for setting up a sole proprietorship? I have searched the MOM website, I promise

- If not... does that mean she basically has to incorporate ($50k) and apply for an EntrePass? It sounds like it from some of the more recent posts, but then it got a bit confusing, for me at least.

I would appreciate some guidance, thank you very much.

Mark

[sundaymorningstaple]

I would appreciate some guidance, thank you very much.

Mark

Read the last two pages of this thread. Or better yet, read the whole thread.

http://forum.singaporeexpats.com/ftopic67690.html

As far a this thread going off tangent, most of 'em do eventually as people post willy-nilly without using too much common sense (Foreign Talent!). We only moderate when it gets to be racist, foul language, out & out troll. For moderated threads we only have the Strictly Speaking sub-forum under the General Forum. There are heaps of good info if you check out the search function (upper right side of the page under the "profile" link. (not the one with the orange button).

Oh, and welcome to the forum!

sms

[CadenceM]

I would appreciate some guidance, thank you very much.

Mark

Read the last two pages of this thread. Or better yet, read the whole thread.

http://forum.singaporeexpats.com/ftopic67690.html

As far a this thread going off tangent, most of 'em do eventually as people post willy-nilly without using too much common sense (Foreign Talent!). We only moderate when it gets to be racist, foul language, out & out troll. For moderated threads we only have the Strictly Speaking sub-forum under the General Forum. There are heaps of good info if you check out the search function (upper right side of the page under the "profile" link. (not the one with the orange button).

Oh, and welcome to the forum!

sms

Ha! But I was directed by you (I think) from another thread to this thread, and now there is another thread that is better than this thread! Seriously though, thanks SMS - most helpful. I promise I did search this site as well as MOM etc - the thread above must have slipped through my dragnet

[mfcarava]

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.

If a DP sets up a private limited as the sole director, are they still subject to the requirements under the EntrePass system to meet minimum levels of local employees and TBS (total business spending)?

[ecureilx]

If a DP sets up a private limited as the sole director, are they still subject to the requirements under the EntrePass system to meet minimum levels of local employees and TBS (total business spending)?

EP, Entre-pass, WP, S-pass is awarded based on the merit of the person, not his / her status here - wife / husband /father etc. ..

So, once you are applying for any of the passes, the respective pass' terms apply ..

Cheers

[Strong Eagle]

If a DP sets up a private limited as the sole director, are they still subject to the requirements under the EntrePass system to meet minimum levels of local employees and TBS (total business spending)?

No.

[kithu]

Guys,

I read the entire thread from post1 till the end and got more confused

I will be moving to Sg(obviously with DP) with hubby. I am a .Net developer and working on freelance basis back home. What procedures should I follow if I want to continue my freelance web development. After reaching Sg, I might continue working for my existing clients (from Europe) or might search for new ones in Sg. Please shed some light.

Thanks and cheers
Kithu

[ecureilx]

Guys,

I read the entire thread from post1 till the end and got more confused

I will be moving to Sg(obviously with DP) with hubby. I am a .Net developer and working on freelance basis back home. What procedures should I follow if I want to continue my freelance web development. After reaching Sg, I might continue working for my existing clients (from Europe) or might search for new ones in Sg. Please shed some light.

Thanks and cheers
Kithu

you are not allowed to work without MOM approval,

however, since you are doing freelance, and overseas, projects, you are in a grey area .. if you are going to service clients here, and you are going to bill them, better fess up and inform MOM, do the needful and get it legalised ..

[kithu]

Thanks for the reply. In any case I will check with MOM as soon as I arrive in Sg. I heard its difficult to find work in sg with a DP. I just wish and hope that nothing stops me from taking up overseas projects.

[ecureilx]

Thanks for the reply. In any case I will check with MOM as soon as I arrive in Sg. I heard its difficult to find work in sg with a DP.

Why would you say that ? Prudent employers are worried about what you know and what you deliver, not what your pass status is .. if you worth, they will do the needful to get you the relevent passes .. or did I miss something ??

[Strong Eagle]

Thanks for the reply. In any case I will check with MOM as soon as I arrive in Sg. I heard its difficult to find work in sg with a DP.

Why would you say that ? Prudent employers are worried about what you know and what you deliver, not what your pass status is .. if you worth, they will do the needful to get you the relevent passes .. or did I miss something ??

A lot of employers don't know that people on DP can be hired relatively painlessly. And for those that do, they know that the ability of the DP to work is dependent upon the sponsoring EP remaining in effect. So, there is a risk in hiring a DP.

On the whole, more DP holders have complained about not being accepted for a job than the other way around.

[ecureilx]

...

My question was towards the OP: if she is worth it, then the employer would be more than happy to do the needful ..

In my former work place, there are a couple, husbands was on EP, wife was brought in on DP, and then she was employed, and now the company got them seperate EPs, as both were deemed valuable enough ..

[Strong Eagle]

Guys,

I read the entire thread from post1 till the end and got more confused

I will be moving to Sg(obviously with DP) with hubby. I am a .Net developer and working on freelance basis back home. What procedures should I follow if I want to continue my freelance web development. After reaching Sg, I might continue working for my existing clients (from Europe) or might search for new ones in Sg. Please shed some light.

Thanks and cheers
Kithu

Here is the deal. Things have tightened up. It may be harder for a DP holder to form a sole proprietorship to start a business that has no history. This would be the case, in part, because of the view that foreigners are taking jobs.

However, if you have a proven track record as a freelance programmer and are willing to start a private limited, I think that the chances are good that you will be approved. You need to supply adequate documentation of prior history, current clients, and maybe be prepared to provide some pro forma financials.

Depending on how much money you make, you might even be able to form a private limited and apply for an EP for yourself, thereby becoming independent of hubby's EP. This would really depend upon whether your income, in the eyes of the gahmen, qualifies as a business and not a part time hobby.

You could fly under the radar if all your work is done via a computer, is performed for clients outside of Singapore, and money you receive is banked elsewhere (and taxes paid as well). You're not really stealing local jobs and no one will be looking for you.

If you want to enjoy a lower tax rate than Europe, then you'll want to collect you money in Singapore, in which case you need a legal entity.

[kithu]

First of all, I appreciate your efforts and time spent in sharing ur views. It means a lot to newcomers like me

@ecureilx: Needless to say I do not have personal experience. I have "heard" from people that employers hesitate to employ DPs for the reasons strongEagle mentioned. May be the employers feel its less hassle to employ PRs or so. I have no idea
However I am not sure whether this applies only to "full time employment" or to freelancing assignment as well. (Do I need LoC even for short-term freelancing assignment?)

@Strong Eagle:
I am not into full time development. I have a Kid in Kindergarten age group and thats y I chose freelancing over full-time employment. I would like to stick with freelancing at least for another couple of years. I doubt whether my income will qualify as "Business"
Secondly, you hit the nail right - I would be more interested to receive my money in Sg as Tax is higher in Germany and why to pay so much when you are not living there?

Okay here goes my question further
1. Which should be my first stop? MOM? Will they be able to guide me? Should I have to consult with ACRA or IRCS as well. Any thoughts?

2. Is there anything that I have to do while I apply for DP or should I start things only after landing in Sg?

Cheers
Kithu

[kithu]

Hey Guys, a very good morning to everybody. Successfully landed and kind of settling down in Sg's hot sun and thunder showers.

Here's the recap of my case. I am a web developer working for a German company on Freelance basis for the past 3 years while I was living there in Germany. Now relocated to sg with family and the client wants continue working with me. I will (?) be working from home and transferring the files online.

So here is what has happened after talking to at least 4 officers at MOM over phone - they say that I can't work on freelance basis in Sg He(the one with whom I spoke last time) said either I have to be employed by the overseas company or should have a company registered and render my services. Registering the company is not an option as it is a part time job and the income does not justify for a private limited company. I am still not sure whether they have understood my case that I am on freelance only with the German company and not with any company in Singapore. I tried to explain that over phone and they say that they got my point But I seriously doubt.

What to do guys? Shall I go in person and check again? What say?

Kithu