Open a Sole Proprietorship on a DP and getting the LoC

[Ratpick_2000]

So my DP holding wife got confirmation of her LOC through the post today - she is officially a Fashion Designer

Great news all round, and thanks to all the good posters here, an absolute breeze to complete.

Cheers

[andaluc]

To those of you who have successfully got the LOC now, did you declare any paid up capital when you filled out the LOC application form? As I am a sole trader employing no one else and just dependent on my own artistic skills for my business I was hoping that I don't need to do this. Are you meant to open a bank account for your business first or can you bypass this?

[Ratpick_2000]

To those of you who have successfully got the LOC now, did you declare any paid up capital when you filled out the LOC application form? As I am a sole trader employing no one else and just dependent on my own artistic skills for my business I was hoping that I don't need to do this. Are you meant to open a bank account for your business first or can you bypass this?

No. Nothing required in the way of paid-up capital. Remember, you are opening a "sole propietorship" or "business" not a "company", ergo you don't need to prove liquidity. When we filled in the salary details, we simply guessed at a reasonable figure she might get paid per month.

Hope this helps

[aimzey]

Hi,

Hope everyone has had a nice holiday break. I'm now just finalising my LOC application and just wanted to make sure I am filling it all in correctly.

Is anyone able to help with these queries?

1. I know salary needs to be at least 2500 per month but is this fixed or basic?
2. For the number of employees I'm not sure whether to put 1 or 0. Until I actually receive the LOC from MOM then technically there are no employees of the business yet. Is that correct then to put 0 or do you put 1 assuming that once the LOC comes through you will be the sole employee.
3. Anyone know where to find the full list of occupations? I can only find from A-J?
4. I thought Paid Up Capital for a SP was $1. During the registration process there was no option for this. Have I done something wrong or does this occur later in the process?

Hope someone is able to help me out.

[aimzey]

For some reason didn't see Ratpicks post from earlier today. OK - so I see now that paid up capital will just be 0 then.

Any help on my other questions would be great!!

[PGS]

Yes, it OFFICIAL now!! In the mail today, I received my letter from MOM stating my sole-proprietorship was approved!!

And, to end the confusion over this paperwork and information quagmire, let me make some points:
-If you're a Dependent, you CAN open your own Sole-Proprietorship WITHOUT A *EXPLETIVE* ENTREPASS!!
-Register your business with ACRA first and pay the $65. Then, download the LOC from MOM
- it is NOT illegal to fill out your own LOC if you're on a Dependent Pass b/c I did it and was approved!
-your spouse DOES NOT need to sponsor your business if you're a Dependent-that's the whole point of being a sole-proprietor and signing your own letter of consent
-there is a difference between a company and a business and the ACRA operators aren't trained to answer questions about a sole-proprietorship (business). They are only trained to answer questions about an Entre-Pass. Don't waste your time asking. Instead, take your happy self to the MOM with your 7 documents, take a ticket and insist you need to go to the BLUE ROOM
-you do need to submit 6 additional documents along with your LOC when you send your paperwork to ACRA now (refer to my previous posts for info.)
-I have a contact name for a representative at ACRA should anyone need it (High-five to "Movingtosg" for this!!)



And, last but not least, BEST OF LUCK TO ANYONE WHO IS GOING THROUGH THIS SITUATION NOW. I HOPE I HAVE SOLVED THIS MUCH TALKED ABOUT ISSUE!!

LESLIE

Hi Leslie,

Thanks for this info which greatly helps me in understanding how I can set up my sole proprietorship being on a dependent pass!

I just have one question regarding the LOC. What did you actually mention as salary in your LOC? I understand that one can roughly calculate the income one would expect monthly and quote there, but what happens if you don't really end up earning that much initially? How will the taxes be calculated in such a circumstance? If I fill a certain amount in the LOC am I liable to pay my taxes based on that every year?

Your advice will be greatly appreciated!

Thanks.

[Ratpick_2000]

See above. You are a "business" not a "company". You are solely responsible for submitting your tax return to the Singapore Govt. There are instructions how to do this all over the place.

Remember you are effectively a freelancer - in the eyes of the system your salary is not a set figure. Just guess a reasonable amount and note it down.

Good luck

[PGS]

See above. You are a "business" not a "company". You are solely responsible for submitting your tax return to the Singapore Govt. There are instructions how to do this all over the place.

Remember you are effectively a freelancer - in the eyes of the system your salary is not a set figure. Just guess a reasonable amount and note it down.

Good luck

Hey, thank you very much for replying! So, if I guess and write 2.5k (which is only an estimate) as my salary in my LOC and actually end up with an income of only 1.5k, I understand that I will calculate my taxes based on 1.5k and pay ahead? Please advice if my understanding is correct?

Appreciate your time!
Thanks.

[Ratpick_2000]

I could be wrong, but with an income of 1.5k SGD you should be under the tax threshold in Singapore and therefore not liable for any tax!

Not sure completely what that figure is though so worth checking. Tax returns are submitted for the previous year so no need to guess in advance.

[sundaymorningstaple]

it's around 21K/annum at the moment

[wackyjaqy]

Hi All,

I just wanted to let everyone know that I followed Leslie and Ratpick_2000's notes and suggestions on this thread and was approved by MOM as of April 2011.

I registered as a sole-proprietor with ACRA. Then I completed my own LoC. I submitted my LoC along with the list of documents that Leslie noted. I also included my resume along with the LoC. I will be working as a consultant.

Know that it is very possible. Just make sure that you submit all the supporting documents and to clearly note everything for MOM so that they understand.

Good luck to everyone else!

[Strong Eagle]

Hi All,

I just wanted to let everyone know that I followed Leslie and Ratpick_2000's notes and suggestions on this thread and was approved by MOM as of April 2011.

I registered as a sole-proprietor with ACRA. Then I completed my own LoC. I submitted my LoC along with the list of documents that Leslie noted. I also included my resume along with the LoC. I will be working as a consultant.

Know that it is very possible. Just make sure that you submit all the supporting documents and to clearly note everything for MOM so that they understand.

Good luck to everyone else!

Well done, and thanks for sharing. I suspect you provided the kind of professional package that makes people think you actually know what you are doing.

[Deekay]

Hi All,

I just wanted to update everyone on this process. So today I went to MOM to hand in all my documents as described in this post and apparently there is no longer a blue room. Well there is a blue room but it is no longer used for the purpose that it used to be used for.

So I asked, when did this change occur and they replied of March this year. I said why? And they said because we no longer offer over the counter services for lodgement of employment related documents eg LOC.

So now all we are allowed to do at the MOM office for this process is to lodge the documents at the mail room (this is a small door just at the front entrance of the MOM office on the left hand side). The documents are received just as if you were mailing them only you have to take a copy of page 1 of the LOC that you lodge and they stamp that copy for your reference and proof that they have been lodged.

Now the 5 week wait starts until I find out if I have been approved!

Until then ............

[dknyrob]

3) Add the 6 other additional documents I mentioned in one of my earlier posts
I hope this helps!

Just curious what are the 6 other additional documents that was mention in the earlier post? as I'm I just got a LTVP so looking to start a Solo-Proprietorship.

thanks

[wackyjaqy]

I had compiled the information from the various posts along with my experiences and put it all in one document for a friend. Sharing it for everyone else as it appears that people are losing track of the various postings.

Tips to Open Sole Proprietorship with Dependent Pass Holder

Your spouse DOES NOT need to sponsor your business if you're a Dependent-that's the whole point of being a sole-proprietor and signing your own letter of consent

There is a difference between a company and a business and the ACRA operators aren't trained to answer questions about a sole-proprietorship (business). They are only trained to answer questions about an Entre-Pass. Don't waste your time asking.

If you do ask anyways and the operators and tell you that if you want to open a company, “YOU NEED AN ENTREPASS!”