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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.

mhalliday
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sole proprietorship self employment for relief teachers

Postby mhalliday » Wed, 08 Feb 2012 7:09 pm

I also wish to thank previous posters, whose advice has been so useful. I too have recently received a letter of consent to employ myself.

However, I wanted to share a few problems I had, so others can be prepared:

I already had two letters of consent (LOC) as I work as a relief teacher at two schools. I wanted to be self employed so that I could put my name down at a couple more places. (And so I could accept any offers of "one off" type work). I am not trying to work 100 hours a week by the way! Just trying to get a couple of days each week.

The fact that I was already working seem to confuse MOM staff no end. I was given conflicting advice and told to do a variety of things - it all depended on who you spoke to. It was like being stuck in a Monty Python episode.

Anyway - it seems you can have up to two LOCs (on a dependent pass) but NOT if one of them is to be self employed. (At least according to the tenth person I dealt with who finally got mine sorted out). I was told that MOM considers you have to put 100% of your time and energy into your business and not work elsewhere! (Even if the nature of your business is to work at several different "elsewheres" )

So - if you are already doing some casual or part time work, and wish to also be self employed, they may well ask you to cancel your existing LOC. (Even if you plan to contract yourself straight back to that employer).

Best of luck to others looking at this option. I know of several relief teachers frustrated at only being able to have theri name down at one or two schools. And also know the schools find this "rule" makes it hard for them to get relief teachers.
The truth is out there (but often inconvenient!)

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Postby sundaymorningstaple » Thu, 09 Feb 2012 9:00 am

mhalliday,

+1! Excellent information for those types of jobs. Thanks for the feedback. :)

mackeral
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Success!

Postby mackeral » Wed, 18 Apr 2012 11:20 am

Hi all,

I'm writing to share that I just received approval from MOM to work as a self-employed freelancer here in Singapore.

I can't thank this forum enough for all the valuable information provided on this subject. For those of you that are trying to open a sole proprietorship, I highly recommend you read through all of this thread, in particular consult the post by "wackyjaqy" which lists very clearly all the steps one needs to take to open a sole proprietorship on a DP. (A million thanks to you WJ!)

Here's some insight that I can share:

I didn't speak to anyone in the govt. here in Singapore prior to applying. From what I read, it seemed as though doing so would be confusing and discouraging. I got all my information from this thread.

My application packet totalled 18 pages! This included a detailed CV and copies of my undergraduate and graduate transcripts. I wrote all the supporting documents in a straight-forward, plain english manner, avoiding fancy-schmancy terminology.

I made up my business logo myself on the computer and put it on all the documents. I wasn't anything fancy and most certainly I won't be using it in the future.


...one last thing I'd like to add which I'm sure has been spoken of many, many times. I came over here with my wife (who has the EP), thinking that I'd have no problem finding a job in SG. Wow, was I wrong. Despite my degrees, my former positions held etc. etc., I could not find anyone who wanted to hire me. It's really, really hard to get hired here depending on your field. One of the main things that I heard from potential employers is that despite their interest, they weren't willing to sponsor me. So definitely have something lined up before you come.

emily.j.cheung
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Just submitted my LOC application

Postby emily.j.cheung » Tue, 24 Apr 2012 4:31 pm

Hi There,

I have just today dropped off my application for LOC after following all the instructions provided on this thread. I was told to wait 5 weeks for a reply. Once I find out if I was successful I will be sure to update this thread to let you all know.

Thanks so much for all the advice given. I really appreciate it.

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Postby sundaymorningstaple » Tue, 24 Apr 2012 5:40 pm

mackeral, congratulations. Somehow I missed your update. It's good to know that we've finally got a semblance of SOP now for this type of thing. Thanks for updating. It's appreciated.

sms

emily.j.cheung
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Approved

Postby emily.j.cheung » Tue, 15 May 2012 8:28 pm

Hi There -Just wanted to post a quick update to say that I have just received my approved LOC from MOM. I'm so very thankful to all the posters here who have shared their experience! MOM said it would take 5 weeks, but it took only 3 weeks!

Thanks.

mhalliday
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update on employers understanding of self employment

Postby mhalliday » Wed, 16 May 2012 10:18 am

So pleased to hear a couple of other people are giving the self employed route a go.

I have another tidbit of feedback about being a self employed DP holder. This is not such good news, but is important for people to know. After gaining my own LOC, I immediately approached another nearby International School about relief teaching. The principal was enthusiastic about the combination of subjects I could teach and approved my application on the spot. She sent my paperwork to the school's HR department so they could get me signed up (so to speak).

Unfortunately the HR department could not understand the nature of my self employed LOC, and insisted that they needed to apply for one for me. I explained that there was no need, and that their application would be refused anyway, as I already had an LOC. We basically came to an impass, as the HR people said "that's not how we do it". I pointed out that what they really meant was "we've not done it like that before" and that other schools were happily employing me in this way. To no avail. Pleas from the Principal also fell on deaf ears.

I gave up on them, a bit worried and disheartened. Had I created more problems for myself? Were all potential employers going to baulk at the self employed bit?

Then I applied for , and was offered work with a corporate training organisation. Their HR department was more familiar with self employed "consultants" and even had a contract for me.

So now I am merrily flitting between three main employers and working , on average, 2 - 3 days a week. Which is what I wanted.

My point is that clearly some employers may not be willing to do something different for you, and may be very set in their ways about employment procedures. Even a "western" employer like an International School, may have an HR department that is locked into a very Singaporean mindset of "this is our procedure which we doggedly follow even if it makes no sense".

Good luck fellow would be freelancers!
The truth is out there (but often inconvenient!)

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Postby movingtospore » Thu, 31 May 2012 3:25 pm

I have not caught up with this thread in a long while - congrats to all who have successfully navigated the maze of self-employment in SP.

zion77
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got approval

Postby zion77 » Fri, 03 Aug 2012 11:32 pm

This forum has proven very helpful. My wife on dependent pass, got approval from MoM to work in her own company - {Self serving links removed by moderator} . She applied to MoM on 7th July 2012 and on 30th July, she got approval.

Thanks to everyone on this forum who shared their experiences. {self serving links removed by moderator}

misss
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Update on this thread

Postby misss » Mon, 24 Sep 2012 4:30 pm

it's now a year or so after the last post on this thread and I just wanted to say that the same rules still seem to apply. I followed the steps outlined here and got my approval in 4 weeks, avoiding going through an agency which was going to charge me $800.

I've now received my LOC from the MOM along with other documents I have to sign and return.

I wrote a salary of $2500 per month on the application even though I have no idea when I'll be able to earn that much as it might take a while to establish myself here in Singapore, but other than that I found the whole process fairly smooth.
I now only have to open a bank account.
Thank you to all who compiled the step by step instructions found here.

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Waiting for MOM, what about Liability Insurance?

Postby kawatson » Tue, 02 Oct 2012 2:08 pm

Hello,

I submitted my paperwork 2 weeks ago following the methods here - I am looking forward to the results! In the meantime, I am hoping to be hired as a consultant here by an American Company that works with IT resellers in Singapore. They are requiring I get General Liability Insurance. Has anyone gone through that as they negotiate a sole-proprietor contract? Any issue with the contract in my name versus my new company? (That was super easy to setup! Thanks!).

mhalliday
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reply to pm enquiry

Postby mhalliday » Wed, 10 Oct 2012 6:39 pm

I received the following private message, but do not use this forum regularly and cannot reply by private message:

"sorry to disturb you with the LOC issue. I read all your posts on the ExpatForum since your situation is quite similiar as the one I am facing with. However, I am not 100% sure what your tip would be for my case, so I am wondering if you can confirm my understanding: I want to give Chinese lessons to private persons, so I think I need to be self-employed. At the same time, I want to work part-time for a school who told me that they would apply a LOC for me. (it seems that they have never heard about Sole-Proprietorship for DP holders). According to your knowledge, is it true that I can't get a self-emplyed LOC if I already have one from the school? And the other way around also?
Btw, can you please tell me if I can issue a bill for my private lessons if I have got my (self-empoyed) LOC approved?

Thank you so much in advance!"

My response is: I was told by MOM that I could not have another LOC if I had one for self employment. They made me cancel my exisiting LOC's before they would issue my self employment LOC. This doesn't mean you will get the same answer! I issue invoices for all the work I do. I put my ACRA number on each invoice. If I were teaching private students, I would be issuing an invoice in the same way. However I am not an expert in these matters!

Kokeshi
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Thank you!

Postby Kokeshi » Wed, 07 Nov 2012 9:43 pm

Hi - just joined to say thank you to everyone on this thread - got my LOC today after 2 weeks, following the advice here. Really appreciate you all sharing your experiences =]

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Postby Leaving london » Thu, 13 Dec 2012 1:28 pm

Hi All,

WOW this is amazing! Think you should all apply for jobs at MOM...actually they should be head hunting and stealing you to explain in plain english how everything works!

My turn next....I'm scared.

Hi Kokeshi,

Im so pleased that your LOC came through and that all was approved. You are the only current person on this thread and I wanted to ask what paperwork you provided?

Was it the Application for LOC
plus the 5 other bits mentioned previously? i have a few queries on those 5 other bits:
1)ACRA business profile - what is this? Is this the green automated letter they send you saying congratulations you are now a buciness owner?
2) Detail of Job Duties
3) Venue perfoming duties
4)Reasons why Entrepass not applicable
5) Undertaking letter
6)LOC Letter saying I'll be employing myself

Q: if you design your own company logo etc. on PC how can you officially stamp the company stamp on the application form?

FINALLY - did you post the lot or pop it down there yourself?
Everyone says that things have changed int he past year with the new rules etc. but its great to know the old thread and advice still sticks.

Your help is greatly appreciated.

Left London

shellbe6
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LOC for DP in Prival company

Postby shellbe6 » Thu, 27 Dec 2012 12:48 am

Hi All,
I've read all the posts in this forum. I understood the difference between a business and a company.
I'd like to ask if anyone tried to apply for LOC for a DP in a PTE LTD.
Thanks a mil!


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