Open a Sole Proprietorship on a DP and getting the LoC

[cdmaningo]

Has anyone submitted their application online for the LOC? If yes, can you advise on the process as I can't seem to figure it out. Thank you!

[cdmaningo]

Another few questions for those of you experienced with filling out the LOC application.

- What is Paid-up Capital?
- Value of Turnover of the Company. If it's a new company do you put N/A?
- Total number of employees. Do I put 1 since I will be the only employee?

Thank you all!

[kironsc]

Hi all,
Just to let you know that my wife got her LOC for her sole proprietorship following the guide/advice found on this thread.
Filled out the LOC form, attached a 5 page synopsis of the business idea and the caveat that she understood that the LOC would lapse upon her dependants pass being invalidated for whatever reason.
The only slight hiccup we had was that we waited the 6 weeks and didn't receive an answer. She contacted MOM who said they didn't get the original paperwork in the post. We escalated it and after an email submission of everything to MOM, we then got the approval after a further 2 weeks.
Hope that helps.

[sundaymorningstaple]

Nice to hear. Congratulations. Thank you for your courtesy in letting us know as that just adds to the database of knowledge of what works & what doesn't.

sms

[Caelois]

Hi all. Great to find this thread with some great info. I'm just about to start the process of looking for approval for a new business as a dependent in SIngapore. Looks like I have everything I need here with regards to the application but before I even get that far I have a decision to make in relation to the type of business. I have 2 options one of which would be quite common in Singapore and a second which is in the same general field but specifically would be very new to Singapore. I would be using some technology that currently is not available in Singapore. The question I have is there more likelihood that approval would be easier to achieve for one over the other ie something that is widespread or something that would be a new technology

[varmarashmi]

Great information on this site, thanks. I stay in a rented condo. Would I need to hire a virtual office space or can I provide my condo address as the office address? TIA.

[Elly Mac]

Thanks so much to everyone who has taken the time to share their experiences on this thread, it's really incredibly helpful.

Colio, I am a new member so I cannot message you, but if you are still reading this thread would you mind please sending me the details of the accountant that you used? I am looking into the PTE LTD option instead of the SP option also.

Thanks so much, really appreciate it.

[Strong Eagle]

Great information on this site, thanks. I stay in a rented condo. Would I need to hire a virtual office space or can I provide my condo address as the office address? TIA.

It depends upon what your business is and where you live.

http://www.hdb.gov.sg/fi10/fi10326p.nsf ... enDocument

If it is a private condo, then the rules governing the condo would apply but in general, if you are not obnoxious and don't have a stream of people coming through everyday, probably OK. But if you are planning on selling product out your front door, probably not.

[processdriven]

I’m happy to say that I have recently received my letter of consent, and would like to share my experience so that others have a recent example to look at.

I’m also very grateful to everyone else who posted their experiences, as this was the main source of my success and resolve!

I’d also like to add the caveat that this was my experience, and that most of this info is a repeat of what has been said in the past, but for completeness and given that it is very recent, please bare with my long post.

Firstly I'd like to say, follow the information in this thread, and just post your application. Based on my recent experiences, next time I will refrain from trying to speak to anyone at MOM for “clarification”

[sundaymorningstaple]

Excellent and concise. Thanks for the up-to-date, blow-by-blow description. I'm happy our data collection has yet benefited another. We hope your business is a success. Cheers!

[Strong Eagle]

Thank you very much for posting this detailed recap of the process you used. It will be of great help to others and add to our trove of knowledge. It also once again demonstrates that MOM is aware that the newer Entrepass requirements make it virtually impossible for any solo business to be created under that scheme.

[minatomove]

I'm on a DP and have set up a sole proprietorship - this thread has been an incredible guide for me in preparing to apply for a LOC - thank you everyone who has shared their experiences!

Two questions I hope you may be able to help with - I can't find anything on MOM and am finding conflicting info on other sites - hoping the oracles here may be able to shed some light. If not pertinent to this thread, please advise. Thank you!

1. I'm currently the majority shareholder of a locally registered Pte Ltd.; not drawing a salary. Can a DP holder be a shareholder in a company and apply for a LOC with another (business), or do I need to transfer my shares before applying for the LOC?

If cannot be both a shareholder and have LOC, and decide don't want to transfer shares, is the following possible:

2. Not draw a salary from the sole proprietorship, and therefore not apply for a LOC? Background: we are in the midst of our PR application. If it comes through, applying for a LOC is no longer a concern. Working on the premise that our application will be successful, can I operate the sole proprietorship (advertise, import, make sales of product, etc.) without drawing a salary for the next 4-6 months, or is this not advisable - too grey? It's a small online business, low sales volume expected initially.

Thank you again!

[Strong Eagle]

I'm on a DP and have set up a sole proprietorship - this thread has been an incredible guide for me in preparing to apply for a LOC - thank you everyone who has shared their experiences!

Two questions I hope you may be able to help with - I can't find anything on MOM and am finding conflicting info on other sites - hoping the oracles here may be able to shed some light. If not pertinent to this thread, please advise. Thank you!

1. I'm currently the majority shareholder of a locally registered Pte Ltd.; not drawing a salary. Can a DP holder be a shareholder in a company and apply for a LOC with another (business), or do I need to transfer my shares before applying for the LOC?

There is nothing in the companies act that would prohibit you from owning shares in another company. What you haven't stated is if you are also a director of the company.

Having said that, it would be MOM that makes the decision about the LOC. In one scenario, they don't care if you own the shares because you are a passive investor, not a director, not drawing any money. Your ownership shouldn't make any difference.

Or, if you are also a director, then the question might arise as to why you're not getting a LOC from the company. Need more information from you about who the company's directors are, and if you are not a director, why you might be invested in someone else's private limited.

If cannot be both a shareholder and have LOC, and decide don't want to transfer shares, is the following possible:

2. Not draw a salary from the sole proprietorship, and therefore not apply for a LOC? Background: we are in the midst of our PR application. If it comes through, applying for a LOC is no longer a concern. Working on the premise that our application will be successful, can I operate the sole proprietorship (advertise, import, make sales of product, etc.) without drawing a salary for the next 4-6 months, or is this not advisable - too grey? It's a small online business, low sales volume expected initially.

Thank you again!

It doesn't matter at all whether or not you draw a salary. The net profits from the SP go directly to your income reporting on your personal income tax. Example: SP has revenues of $20,000, expenses of $10,000, and you pay yourself $10,000. SP reports zero profit but must give you an IR8A for $10,000 of taxable income.

Or... SP has revenues of $20,000 and expenses of $10,000. You pay yourself nothing, therefore the company has a net profit at the end of the year of $10,000. This goes to your personal income tax form... you can see that it is a complete wash whichever way you do it, and either way will require you to have a work permit of some sort.

[minatomove]

Thanks very much for your comments, and clarity re: Q2.

I'm not a director of the company that I have shares in. My husband and I are the 2 shareholders; he is the director. Invested in it because I believe in viability of the company (& my husband!). It's not my area of expertise, so I would not be employed by it.

Have written to MOM to see if is any issue at all their side for me to be a shareholder in the company and apply for a LOC from a business (my Sole Proprietorship). Hopefully won't be but wanted to be 100% clear before starting - came across potential conflict when looking for general LOC info - hadn't even crossed my mind before!

thanks again!

[Strong Eagle]

Thanks very much for your comments, and clarity re: Q2.

I'm not a director of the company that I have shares in. My husband and I are the 2 shareholders; he is the director. Invested in it because I believe in viability of the company (& my husband!). It's not my area of expertise, so I would not be employed by it.

Have written to MOM to see if is any issue at all their side for me to be a shareholder in the company and apply for a LOC from a business (my Sole Proprietorship). Hopefully won't be but wanted to be 100% clear before starting - came across potential conflict when looking for general LOC info - hadn't even crossed my mind before!

thanks again!

If you are a passive investor, and have no other roles as registered at ACRA, then I don't see how this would be different than holding shares in the dry cleaners down the street.

Where did you come across a "potential conflict". I've read a lot of literature and not come across this.