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Dependent Pass not allowed to incorporate a private limited

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sundaymorningstaple
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Postby sundaymorningstaple » Mon, 04 Oct 2010 10:55 pm

And when the opposite happens, just refer them to lalancaster1 to take the blame. :wink: whom I'm sure will shoulder the blame for the failure. Who knows, they might wake up at MOM and decide to put a stop to the thing that's really starting to make them look ridiculous. :)

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Postby ksl » Mon, 04 Oct 2010 10:56 pm

If you want to open a company, YOU NEED AN ENTREPASS!

Don't let the operators tell you you need an EntrePass if you want to open and run your own business. Just check out the descriptions on the MOM site for a distinction between "sole-proprietorship" and "company." That's their standard default recommendation-"You need an EntrePass"-they are CLUELESS!!


Actually you are wrong, people moving to Singapore to start a sole proprietor business do in fact need to apply for the entrepass.

For a DP holder it is not required as you are here already, and your spouse is on EP, so you have been privileged to employment with just a letter of consent.

There is quite a big difference. The correct way to avoid all the fuss would have been for your spouse to register the business, so that the spouse could sponsor you, as your DP is tied to his EP and the EP holder is not allowed to be active in his own business, but he may start one.

Though if you manage to get through it all, good luck.

The next thing, if you decide to stay here and your spouse successfully gets PR status, you lose the right to employment, and you will be issued with a LTVSP. Keep that in mind, as you can also apply for EP if your business is showing good results, though you may have more success with a Ltd Company later on.

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Postby Strong Eagle » Tue, 05 Oct 2010 7:38 am

ksl wrote:
If you want to open a company, YOU NEED AN ENTREPASS!

Don't let the operators tell you you need an EntrePass if you want to open and run your own business. Just check out the descriptions on the MOM site for a distinction between "sole-proprietorship" and "company." That's their standard default recommendation-"You need an EntrePass"-they are CLUELESS!!


Actually you are wrong, people moving to Singapore to start a sole proprietor business do in fact need to apply for the entrepass.

This is patently incorrect, ksl. The ACRA website specifically says that an Entrepass will not be granted for a sole proprietorship. If you want an Entrepass you will need to incorporate.

For a DP holder it is not required as you are here already, and your spouse is on EP, so you have been privileged to employment with just a letter of consent.

There is quite a big difference. The correct way to avoid all the fuss would have been for your spouse to register the business, so that the spouse could sponsor you, as your DP is tied to his EP and the EP holder is not allowed to be active in his own business, but he may start one.

Though if you manage to get through it all, good luck.

The next thing, if you decide to stay here and your spouse successfully gets PR status, you lose the right to employment, and you will be issued with a LTVSP. Keep that in mind, as you can also apply for EP if your business is showing good results, though you may have more success with a Ltd Company later on.

It makes no difference whether the spouse or the DP holder starts a sole proprietorship or incorporates a company. The same rules apply.


There is a lot of mixing of apples and oranges here, further clouded by throwing PR into the mix.

First question: Who can incorporate a company?

From the ACRA website: (*Any person above the age of 18 years old with effect from 1 March 2009 can incorporate a local company)

http://www.acra.gov.sg/Company/Starting ... ompany.htm

Next question: Who can be a director of a company?

From the ACRA website: (*Any person above the age of 18 years old with effect from 1 March 2009 can be a director of a Company)

http://www.acra.gov.sg/Company/Starting ... ompany.htm

ACRA's own Q&A: What about a foreigner who is to be employed as an employee eg a salaried director?

Any foreigner who wishes to work in Singapore as an employee would have to apply for an appropriate work pass eg. an Employment Pass from the Ministry of Manpower (MOM).

Another question: Who can set up a sole proprietorship?

From the ACRA website: (*Any person above the age of 18 years old with effect from 1 March 2009 can be a Sole-Proprietor or a Partner) [However - someone not in Singapore, and without a Singpass, needs to engage a firm to do the online application]

ACRA Statement: Any foreigner who wishes to work in Singapore as an employee would have to apply for an appropriate work pass eg. an Employment Pass from the Ministry of Manpower (MOM).

From the ACRA website: MOM will not issue an EntrePass to a foreigner who wishes to register and run a sole-proprietorship or partnership. Foreigner who wishes to set up a business and be present in Singapore to manage its operations must seek approval from MOM before registration.

http://www.acra.gov.sg/SoleProprietorsh ... ership.htm

Thus, it seems clear that:

a) Anybody can incorporate a company or start a sole proprietorship.
b) You cannot apply for an Entrepass with a sole proprietorship.
c) It is possible to start a company and apply for an employment pass.

Now, if we drop over to the MOM website, we can find the following information:

If a Dependant's Pass (DP) holder wishes to work in Singapore, the employer is required to apply for a Letter of Consent (LOC). [There are no stated restrictions on what or who the employer is].

http://www.mom.gov.sg/foreign-manpower/ ... fault.aspx.

When it is all said and done, there is nothing to prevent a DP from forming a company and/or a sole proprietorship, and using that company to apply for a LOC.

However, it is also clear that MOM will not approve an Entrepass for a sole proprietorship, and my view is that the LOC may not be approved, either because it's not a 'real' company.

And I will say it again. A corporation, with a director, is a legal entity. Anyone can be a director. Therefore, the director can be the person filing for a LOC for a DP.

But when you form a sole proprietorship there is no one to ask for the LOC because you, as the DP forming the sole proprietorship, cannot work for the company until the LOC is granted. And, if you are not working for the business, you cannot apply for an LOC for it.

I think MOM has closed this loophole. It should be remembered that MOM will deny a LOC for various business types such as tuition, massage, karaoke, hawker centers, hair dressing and the such. There is no obligation on the part of MOM to approve an LOC, especially when the sole proprietorship is brand new, and has zero dollars of turnover.

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Postby sundaymorningstaple » Wed, 15 Dec 2010 8:58 pm

This thread has been split. The current portion of it is now a sticky and is located here:

Open a Sole Proprietorship on a DP and getting the LoC


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