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Open a Sole Proprietorship on a DP and getting the LoC

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.

minatomove
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Postby minatomove » Wed, 19 Mar 2014 9:05 am

Fantastic to hear :) Ready to get started!!

Came across it:

- LOC holders are not permitted to be named as directors and/or shareholders in any company.
www...com/faq/why-do-i-need-a-lett ... dp-holder/

- Dependant’s Pass holder who are the director and/or shareholder in any Singapore registered company are not allowed to apply for LOC.
www...com/faq/can-dependants-pass- ... f-consent/

- LOC holders are permitted to be named as directors and/or shareholders in the company if MOM approval is granted.
www.3ecpa.com.sg/letter-of-consent-appl ... s-holders/

It's clear that I cannot be named a director in a company I work in, but was unclear about an unrelated company. R----- was the only one that flat out stated this but perhaps I should have taken it with a pinch of salt - we used their services a few years back and were not overly impressed.

Thank you again Strong Eagle :)

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Postby Strong Eagle » Wed, 19 Mar 2014 10:08 am

minatomove wrote:Fantastic to hear :) Ready to get started!!

Came across it:

- LOC holders are not permitted to be named as directors and/or shareholders in any company.
www...com/faq/why-do-i-need-a-letter-of ... dp-holder/

- Dependant’s Pass holder who are the director and/or shareholder in any Singapore registered company are not allowed to apply for LOC.
www...com/faq/can-dependants-pass-holde ... f-consent/

- LOC holders are permitted to be named as directors and/or shareholders in the company if MOM approval is granted.
www.3ecpa.com.sg/letter-of-consent-appl ... s-holders/

It's clear that I cannot be named a director in a company I work in, but was unclear about an unrelated company. R----- was the only one that flat out stated this but perhaps I should have taken it with a pinch of salt - we used their services a few years back and were not overly impressed.

Thank you again Strong Eagle :)


Rivkin's answers are mostly bullshit. For example, they say, "A Dependant’s Pass holder who holds a key appointment in any entity will not be entitled to a Letter of Consent" but clearly, quite a few people have formed a SP and got the LOC.

I'd continue to move forward with the SP, using the knowledge gleaned in these threads... there is no sure deal.

gailwynand
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Postby gailwynand » Fri, 21 Mar 2014 12:29 pm

Also got my SP LOC approved recently using the guidelines in this thread. Thanks everyone.

One minor concern, upon issuance of the LOC I was asked to sign a declaration attesting to my salary and giving MOM permission to verify it. The form basically seemed like boilerplate.

I know the salary stated in the application is realistic for now (I have clients lined up for the next few months) but if I decide to focus on getting a corporate job later on it may go to zero while I do job applications, networking, etc.

Anyone with irregular income in their sole proprietorship run into problems with MOM later on when transferring to EP? I can't imagine they would care since I am eligible to be in SG anyway and am from a country MOM likes, but just want to confirm.

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RDD
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Postby RDD » Mon, 31 Mar 2014 2:13 pm

I followed the advice given by the many helpful individuals on this thread and I am pleased to report that I received my LOC last week - just 10 days after submitting my application. I am especially grateful to proccessdriven for writing such a detailed post - I followed their advice to the letter and my application consisted of more than 10 separate documents including the application form itself.

Just one point to add: since I don't have a company stamp yet, I had written N/A on the relevant space on the application form. 2 days after I posted my application, MOM called me to tell me they needed a company stamp. When I explained I didn't have one yet, they asked me to provide a signed statement on letterhead instead which declared that 1) I understood I would need a company stamp for the renewal of my LOC and 2) everything that I had said my application was true. Apart from that, I was shocked at how straight-forward and quick getting my LOC approved was.

Again, many thanks to everyone who has contributed to this forum.

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Postby gailwynand » Wed, 02 Apr 2014 11:48 am

RDD wrote:Just one point to add: since I don't have a company stamp yet, I had written N/A on the relevant space on the application form. 2 days after I posted my application, MOM called me to tell me they needed a company stamp. When I explained I didn't have one yet, they asked me to provide a signed statement on letterhead instead which declared that 1) I understood I would need a company stamp for the renewal of my LOC and 2) everything that I had said my application was true. Apart from that, I was shocked at how straight-forward and quick getting my LOC approved was.

Again, many thanks to everyone who has contributed to this forum.

Did the same thing and got no such call. Probably just depends on who looks at your application.

jga14
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A question

Postby jga14 » Wed, 02 Apr 2014 12:21 pm

Hello - my question may be obvious but I just want to clarify that The Sole Proprietorship with LOC is the way to go for my proposed work. I am an experienced English language teacher and want to confirm that if LOC is approved I can then work as a contract teacher for any Language School that would like to use my services. A couple of schools have offered to apply for LOC but there is no guarantee how much work they can provide and my own business will provide much more flexibility. Any information/advice welcome.

minatomove
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LOC received

Postby minatomove » Fri, 16 May 2014 10:04 pm

Wanted to follow up too - after following all of the very helpful advice here, I received my LOC 4 weeks to the day after posting it in.

Followed the recommendation from processdriven as well, and had a separate doc for Letter of Appointment, Job Description, Letter of Undertaking, etc. Also provided copies of registration with AVA and Customs (import business). In my cover letter, mentioned that would be paying myself a minimal salary of $100 a month initially until pending contracts come in, at which time it would be reviewed and adjusted.

Thanks again everyone for your invaluable help!

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Re: A question

Postby Strong Eagle » Fri, 16 May 2014 11:01 pm

jga14 wrote:Hello - my question may be obvious but I just want to clarify that The Sole Proprietorship with LOC is the way to go for my proposed work. I am an experienced English language teacher and want to confirm that if LOC is approved I can then work as a contract teacher for any Language School that would like to use my services. A couple of schools have offered to apply for LOC but there is no guarantee how much work they can provide and my own business will provide much more flexibility. Any information/advice welcome.


I missed this post. I believe another person successfully did exactly what you are proposing. As for the rest of the advice, it's pretty much in this thread.

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Re: LOC received

Postby Strong Eagle » Fri, 16 May 2014 11:02 pm

minatomove wrote:Wanted to follow up too - after following all of the very helpful advice here, I received my LOC 4 weeks to the day after posting it in.

Followed the recommendation from processdriven as well, and had a separate doc for Letter of Appointment, Job Description, Letter of Undertaking, etc. Also provided copies of registration with AVA and Customs (import business). In my cover letter, mentioned that would be paying myself a minimal salary of $100 a month initially until pending contracts come in, at which time it would be reviewed and adjusted.

Thanks again everyone for your invaluable help!


Excellent! And congratulations and thanks for following up with us.

todolist
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Proprietorship on a DP and getting the LoC

Postby todolist » Tue, 20 May 2014 12:40 pm

Hello All,

This forum has been a saving grace for me. Thanks to all who took the time to contribute their knowledge and experiences. Now it's time for me to pay it forward. Apologies for the length, but it's better to have more info than less.

My application was recently approved . I followed all the steps (particularily: wackyjaqy,processdriven, lalancaster1) outlined in this forum and dropped my application in the box inside MOM lobby on Havelock Rd. All in all, it took them 15 working days to process.

Below are a few points I'd like to add based on my experience with this process.

Once you have registered with ACRA, you will be issued with a NOTICE OF CONFIRMATION OF REGISTRATION OF BUSINESS. On the top left hand corner it will say: Subject Transaction Notification (number) From: BIZFILE SYSTEM MESSAGE. I mistook this for my Business Profile as I wasn't issued anything else other than a receipt. I had a call from MOM requesting I email them the official Business Profile generated by ACRA ( which incidentally has the same info on it...go figure )

So if you don't immediately receive a page looking like (link below), you'll have to pay for one.
http://www.acra.gov.sg/uploadedFiles/Co ... sample.pdf

To get one just:

- Go to the ishop@acra page
https://www.psi.gov.sg/NASApp/tmf/TMFSe ... ue&AN=PP01
- Select Business Profile and do a search for your biz name
- Add to Cart
- On top left hand side you'll see your cart and sum of $5.50. Select Checkout, log in and complete the payment.

Please note, when they say to check your mailbox for email containing download hyperlink for this document ( you have 48 hours to download it), they don't mean your gmail etc. You have to actually log into your account in ACRA and download it from there. I suggest you print to PDF and save it on your pc as you will need it in the future (ie: setting up a bank account etc) and you wouldn't want to pay for it again.

One more thing. I did use a business stamp (I had one of those kits where you can make your own stamp using letters and tweezers) and I do recommend making a simple letterhead (doesn't have to be anything flashy) Since applications are approved based on merit, making it look as professional as possible will help.

Good luck to all who are going through this process.

P.S. Don't bother calling MOM for help about this, nobody seems to know this is even possible (just programmed to talk about Entre Passes and setting up PTY LTD's) nothing but frustration.

FAInstructor
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Multiple LOC's?

Postby FAInstructor » Wed, 21 May 2014 3:01 pm

Has anyone had success in applying for a second LOC? I am currently on a DP and employed in a (very) part time role - ie. 15 hrs a month. I have decided to start working for myself in the same line of work, however for myself under a sole PTE. I have registered a company with ACRA & done as suggested on this site (thanks processdriven!) and am about to drop my application off. HOWEVER, my current employer 'doesn't have time' in the next few weeks to cancel my LOC (I have decided to contract to them instead of being employed by them), not so helpful! A) will my first LOC be automatically cancelled if I apply for a second? or B) will the LOC for my own company simply be rejected? Perhaps in the same line of thought, has anyone canceled their own LOC (as the employee?) Any tips & helpful advice would be much appreciated. Cheers

ysabelle
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LOC for dependant pass of an Spass holder

Postby ysabelle » Mon, 02 Jun 2014 5:44 pm

Hi has anybody here tried to apply an LOC under DP of an SPASS holder?

I want to register a sole proprietorship and apply LOC to work on my own sole proprietorship, but the problem is Im a DP of an Spass holder. Is there any possibility of approval on that? or should I apply work permit for myself?

reply is much appreciated. ;-)

wilkie366
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DP applying for LoC

Postby wilkie366 » Sat, 21 Jun 2014 8:05 pm

Hi there,

Have been going through all the threads on this topic. I'm a photographer on a DP and want to set up my business as a sole proprietorship. I am currently in the process of getting the forms ready to submit to MoM. I will plan to hire an assistant a few months down the line (assuming things go as per plan)- is that allowed as a sole proprietor on the DP, and do you think it makes sense to highlight this in the business plan at the application stage so as to make a stronger case for approval, as the hire would be a PR/ citizen?

thanks
wilkie

wilkie366
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Postby wilkie366 » Mon, 23 Jun 2014 2:52 pm

Anyone who can help answer my previous question? Am almost done with most of the documents and am planning to submit my papers this week. Your reply is much appreciated!

Thank you
wilkie[/quote]

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Postby sundaymorningstaple » Mon, 23 Jun 2014 3:42 pm

I reckon it would probably be a good idea, as without it, I doubt that it will fly. Only time will tell. Good luck.


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