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Changes to EntrePass

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jpatokal
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Changes to EntrePass

Postby jpatokal » Fri, 18 Sep 2009 1:46 pm

This link was already posted, but I think it deserves repeating in its own thread:

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

While current EntrePass holders are not affected, those who come in under the new rules are subjected to some pretty brutal new renewal conditions. For one single P1 pass, you now need eight (8) local employees and "total business spending" (TBS) of $300,000/year or more. TBS here is not turnover, but expenses minus your own salary, any repatriated profits, and any services contracted outside Singapore! :o Even a lowly Q1 needs two local hires and TBS >$100k, and this is allowed for one year only, after which you need to upgrade to P2 (four locals + >150k).

Long story short, the days of the single entrepreneur being able to set up a one-man business on the strength of their business plan are over: to get the pass, keep it and pay yourself a living wage, you'll need to be looking at turnover north of $250k and spending half of it on a stable of locals within two years. :?
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Postby ukdesigner » Tue, 22 Sep 2009 11:57 am

I got my letter from MoM the other day informing me of the change and asking if I want to upgrade to the new pass! Hell no! Why on earth do I want to upgrade / change my pass to the new one and give myself a bigger headeache and the possibility of it not getting renewed and therefore have to close my business.

Seems like madness to me. as you said, gone are the days of the one-man business.

I also read, not in the letter but on the website I think, that they want you to incorporate aswell. Not as a sole-prop but as a pte ltd. More control maybe?
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Postby sundaymorningstaple » Tue, 22 Sep 2009 8:09 pm

Not so much more control, but more accountability. And more safety for the business owner as it separates and insulates (to a degree) the owner from the liabilities of the business. Actually good sense if you think about it.

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Postby ukdesigner » Tue, 22 Sep 2009 8:22 pm

but surely that could lead to more liquidations should businesses fail which would be registered and therefore would go down on the list as failures which can't be a good thing overall for Singapore. Surely they want to keep hioghlighting about how easy it is to do business here and with more pte's and let's say the same amount of failures there'll be a decrease on the level of successful,businesses, whereas as sole props they can almost hide that fact.

I understand where and why they are doing what they are doing but some of the requirements are pretty harsh. Thank my lucky stars I can stay on the existing scheme, and although I'm gonna expand I couldn't expand as quickly as they would want, not without some serious financial risks and a huge amount of debt, even as a pte, to go with it. I guess they are looking for cash-rich entrepreneurs rather than people who have long term plans without a huge financial back-up initially.

To me that doesn't make Singapore one of the easiest places to do business but that's just my tuppence worth. What do you long-termers think?
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Postby jpatokal » Tue, 22 Sep 2009 11:00 pm

ukdesigner wrote:To me that doesn't make Singapore one of the easiest places to do business but that's just my tuppence worth. What do you long-termers think?

I think it's foolish and short-sighted, although also quite typical of Singapore's myopic view of what encouraging investment means. There's a billion incentive programs out there for established foreign companies that want to set up a factory in Singapore and hire dozens of low-skilled local workers, but there's virtually nothing for the sole entrepreneur who wants to set up a high-tech company and start off by hiring a few highly skilled locals. (Off the bat, can't really think of anything except the 3 years of 0% corporate tax startup scheme.)

I came to Singapore as one of the first employees of a small company's new Asia operations, which was flush with VC cash at the time and profitable within a few years, and they would have had some trouble squeezing through these new rules. In particular, under the new rules, can somebody with an EntrePass even hire a second expat guy to work for him? Would be pretty bizarre if the company has a P1 expat working for it but the entrepreneur himself is stuck on a Q1... :o
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Postby cedros699 » Thu, 24 Sep 2009 3:42 pm

It's time to move to another tax paradise ...

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Postby teck21 » Fri, 25 Sep 2009 11:00 am

This is simply another example of this government's knee jerk reaction to many things.

Swinging wildly on any issue one way to the next in a split second.

In their attempt to curb the car population, they introduced the COE system which somehow resulted in Singapore roads being flooded with new cars. Oops, now there're too many cars. We'll just cut the COE by a gazillion to balance it out again.

Public housing. HDB finds out it has built too many by 2004 and decides that 'after taking into account Singapore's population needs' that it does not need to build anymore. The years go by, and now the complete lack of supply of ready-to-move-in 'subsidised' (I shudderat the idea of using this word here) public housing has shrunk to zero. The lack of new supply has caught up and now HDB resale prices are through the roof.

What does it matter though, they always have the statistics and evidence to prove that they were right somehow.

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Postby ksl » Fri, 25 Sep 2009 9:14 pm

jpatokal wrote:
ukdesigner wrote:To me that doesn't make Singapore one of the easiest places to do business but that's just my tuppence worth. What do you long-termers think?

I think it's foolish and short-sighted, although also quite typical of Singapore's myopic view of what encouraging investment means. There's a billion incentive programs out there for established foreign companies that want to set up a factory in Singapore and hire dozens of low-skilled local workers, but there's virtually nothing for the sole entrepreneur who wants to set up a high-tech company and start off by hiring a few highly skilled locals. (Off the bat, can't really think of anything except the 3 years of 0% corporate tax startup scheme.)

I came to Singapore as one of the first employees of a small company's new Asia operations, which was flush with VC cash at the time and profitable within a few years, and they would have had some trouble squeezing through these new rules. In particular, under the new rules, can somebody with an EntrePass even hire a second expat guy to work for him? Would be pretty bizarre if the company has a P1 expat working for it but the entrepreneur himself is stuck on a Q1... :o


Though this is MOM rule and not ACRA rule, it still makes it possible to register a Company, though to employ foreign labour is controlled. The reason is a great deal of abusers have been caught out! Mostly agencies dealing in foreign labour that have been abusing the system.....If you look around all the hawker centres you will only see foreign workers employed not Singaporeans, because Singaporeans don't clean tables or wash up, we are talking many a thousand of workers, that have come in under illegal rules. These companies had phantom Singaporeans employed, so they could bring in foreigners.

I checked with ACRA today, the 50,000$ Capital to setup a Ltd Company. from the 28th September Is a MOM rule not ACRA rule
JP:In particular, under the new rules, can somebody with an EntrePass even hire a second expat guy to work for him?


It would appear so, becuase an expat on EP doesn't affect the foreign workers quota in anyway does it, so you do not need to employ Singaporean first, though on entrepass you are being monitored for contribution to Singapore, so even without employees you are keeping others in work by outsourcing. I would expect though that after 3 years as a Company, that the theme would be on expanding by employing.

The new rules I guess are a guideline only, and are easy to attain, if you are an entrepreneur, otherwise you are just another run of the mill self employed, making a living, and not in the same class, that is required for growth of Singapores.

Guidelines are useful just like forecasting, doesn't mean that you will always reach the target, especially when business is so diversified

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Postby boost7 » Sat, 26 Sep 2009 12:35 am

After getting shocked by the letter, rushed to see if i am eligible for PR using the new online tool, shocked once more, i am not eligible any more. just a few months back light was shinny green and all i can see now is a big red :O

Any comments :(

Is PR getting harder or just that economy crunch doesnt wants them to accept new permanent residents

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Postby sundaymorningstaple » Sun, 27 Sep 2009 10:58 pm

Both. And it's about time. Too many people were abusing the system to only get a long term visa (PR) so they didn't have to leave after getting axed when a Singaporean was hired to replace them. Remember, the gahmen need to take care of it's citizens first! How many PR's take up citizenship? (I didn't and I've been here 27 years - I was in it for the long haul) But I'll be leaving when I can no longer make a contribution to this country (retirement).

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Postby boost7 » Mon, 24 Sep 2012 12:10 am

Sorry digging in a bit older post, but did any one successfully switch to new criteria. any advantages?

I meet all the necessary requirements for P2 and thinking of shifting to new criteria. Given my last renewal was very painful, took whole 3 months to get it and was granted one year visa only. :(

Wonder if i switch will speed up renewals and can get longer visa.

Any comments, suggestions or advise?


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