trying to get an LOC

babypanda · Post by **babypanda** » Sat, 30 Apr 2011 5:14 am

Hi! I have been reading forums from this site for quite awhile but never had the need to ask any thing until now.
I am on DP for more than a year now and started looking for a job late last year. Early April 2011, I was offered by a company that opened an office here in Singapore of mid last year. But their presence is very prominent in the US.
A third party submitted an LOC yesterday thinking it would be faster than applying for an EP. I got the result today and was rejected.

I would like to know your insights on my chances for an appeal should we proceed with one. I believe most of their current hires are Entrepasses except for one Singaporean hired late in March 2011.
Thank you in advance!

Post by **Strong Eagle** » Sat, 30 Apr 2011 12:47 pm

Why did the third party submit? What third party?

babypanda · Post by **babypanda** » Sat, 30 Apr 2011 2:23 pm

The third-party provides client services to companies here and overseas about taxation, compensation, recruitment, HR services, BPO, etc.
Though the company has an HR in the US. Just not sure why they needed third-party's services. I thought it was because the company did not have an EP online account perhaps.

babypanda · Post by **babypanda** » Sat, 30 Apr 2011 4:51 pm

Btw, the third-party also said should the company decide to go for an appeal, to submit the following:

i) My detailed job scope;
ii) The justification of hiring me;
iii) A copy of my employment contract; (i was advised third-party submitted this already so why would MOM ask for it again, hhmmm)
iv) A copy of the Company's Tenancy Agreement

Do you think MOM thinks that I am not qualified? Or the company needs to justify the position? The company is pretty much known, though just starting here in SG. But, why would MOM ask for their tenacy agreement?
Third-party also said that should the company decide to go with the appeal, it would be another cost for them. I can not sleep over this even if I know i can not do any thing at this point. I am even considering of shouldering the expenses just to process the appeal....

I have been up searching the net since I got the reject yesterday afternoon. Would greatly appreciate your time and thoughts.

Thank you in advance.

Post by **sundaymorningstaple** » Sat, 30 Apr 2011 6:29 pm

babypanda wrote:I believe most of their current hires are Entrepasses except for one Singaporean hired late in March 2011.

It would seem to me that just maybe, the company is an MLM and you are trying to get on board via the LoC route. Most MLM'rs are self employed locals and I would doubt very seriously that a LoC would be granted to operate as an MLM. Could you clarify the type of business this is?

I ask, because companies don't hire Entrepass holders. Entrepass holders are self-employed. An LoC is only for employees. Something smells fishy in Denmark......

babypanda · Post by **babypanda** » Sat, 30 Apr 2011 7:28 pm

The company is a financial software company. When I asked why an LOC instead of applying for an EP like the big boss and another consultant, I was told that their passes are different and were EntrePass holders. Though I am not so sure about this information.

The company's Headquarters is in the US. They decided to open their third office in Asia here in SG. When they started, I believe it was the big boss and the consultant who were the initial employees.

Post by **sundaymorningstaple** » Sat, 30 Apr 2011 8:09 pm

You might have a problem even with an appeal. I've not run into that kind of problem but there is a good possibility that Strong Eagle will.

babypanda · Post by **babypanda** » Sat, 30 Apr 2011 10:26 pm

You might have a problem even with an appeal.

SMS, may I ask why you think so?

Do you think we should have taken our chances with an EP instead?

Post by **singaporeflyer** » Sun, 01 May 2011 12:05 am

babypanda wrote:
You might have a problem even with an appeal.

SMS, may I ask why you think so?
Do you think we should have taken our chances with an EP instead?

Getting an EP approved is harder than getting an LOC approved as per my understanding..

Criteria for EP is more tougher than criteria for LOC. On EP it means that you are standing on your own legs, where as on LOC you are just an additional income earner for the family for a person who is already on EP.

Just my 2 cents. Good Luck !

babypanda · Post by **babypanda** » Sun, 01 May 2011 12:19 am

Oh i see. Thanks, singaporeflyer. The reason why I have been thinking about EP is I found from another site (do not know origin of claim), salary for application for LOC should not be that high, that you can apply for a P1 pass. Have you heard of this?

Post by **singaporeflyer** » Sun, 01 May 2011 12:33 am

babypanda wrote:Oh i see. Thanks, singaporeflyer. The reason why I have been thinking about EP is I found from another site (do not know origin of claim), salary for application for LOC should not be that high, that you can apply for a P1 pass. Have you heard of this?

I dont think so..Meaning the salary offered to you by this company is greater than 7k SGD? But i think it should not be an issue for LOC.

babypanda · Post by **babypanda** » Sun, 01 May 2011 2:59 am

My thoughts exactly. Hhhmmm...

ksl · Post by **ksl** » Sun, 01 May 2011 6:13 am

I think SMS is right there is something fishy going on.

If they have set up an office here, it doesn't mean to say that it is actively operating. that is to say, they may have setup a representative office, and if that is the case no one is allowed to be activly working without proper employment passes. My thoughts would be that they are not officially a registered business in Singapore to be fully operational. The Singaporean is probably the local manager and the others are here in a representative role

The people here would be allowed to collect date and research, with the aim of setting up a workforce in the future, but protcol must be followed. My other thought is the 3rd party involvement indicates this company is not yet legally active.

The Singaporean I would think is maybe a nominee for the company, to setup the business, the other two are maybe Americans not paid here but paid in America or trying to set up their own business here, riding on the back of the company in the US. It is obviously flawed, as a 3rd party is not allowed to submit for LOC application as far as i know. Only the registered company here in Singapore can apply for your LOC not a 3rd party here, doing it on behalf of a company.

It must be the Company directly that applies for your LOC, as they are the one's who will be accountable for your sponsorship, my guess is they are not officially allowed to be employers.

Entrepeneur pass holders will have their own registered businesses so ask one of them to employ you directly....sounds very fishy to me.

babypanda · Post by **babypanda** » Sun, 01 May 2011 8:17 am

My thoughts would be that they are not officially a registered business in Singapore to be fully operational.

Thanks for your thoughts, ksl. You mean even if you are a registered company you may still be not officially registered?

ksl · Post by **ksl** » Sun, 01 May 2011 10:53 pm

babypanda wrote:
My thoughts would be that they are not officially a registered business in Singapore to be fully operational.
Thanks for your thoughts, ksl. You mean even if you are a registered company you may still be not officially registered?

A registered Company in USA or UK wanting to set up in Singapore, may first open a representative office and staff it for the collection of data, market research and such, but not allowed to be operational, until a registered company in Singapore is formed. Looks like they thought they could circumvent the rules by employing a local, but they cannot, though I am speculating, as I don't really know the circumstances.

If you read this link, you will get the idea I'm on about, when i say they may have a representative office here, it tells you the restrictions. As it is done through a 3rd party, I would think that is the problem, that doesn't allow you to be employed until they have completed formalities.
http://www.business.gov.sg/EN/StartingU ... usinesses/

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