ComingSoon wrote:Hello,
I am coming to Singapore soon on a P1 as the owner / director of an existing Pte ltd.
When you say "existing pte ltd, do you mean that someone else is/are the directors, and that some else is/are the shareholders?
Because you are also saying that you are the owner/director of an existing company. Need more info... have you formed a pte ltd with you (plus a resident director) as directors, and you as sole shareholder? Has this arrangement already been approved by MoM?
You see, there are about 20 million people in certain countries that try this ruse... create a private limited, then apply for an EP to shoehorn themselves into Singapore, when they wouldn't otherwise have a chance to get in.
So... a reading of the threads in this forum will show you that if you are already operating a successful business and wish to transfer here, or open a new branch, OR if you are already experienced and have contracts in hand, and a demonstrable income stream, then you can probably do this. If however, you have created a company with no external history, no ready to go contracts, and no expertise, you will be shot down.
So... what's this first company all about?
My plan is to work on a second company (as owner) in a separate field while discharging my director duties for the first firm.
First of all, "owners" don't work in companies. They hold shares. They are passive investors. Employees work in companies. Directors may be "executive directors" which means that they are both employees and directors, and receive both a salary plus directors fees. "Outside directors" do not work as employees... they sit on the board of directors only and receive fees for handling the responsibilities of directors.
You need to understand that a P1 doesn't exist for your benefit, it exists for the benefit of Singapore based companies who allege that they cannot find suitable local talent; therefore, the gahmen grants then the right to hire EP's to fill the gap.
The law is quite clear. On a P1, you can only work for the company that provided you the P1. Everything I have seen is silent as to whether an outside director position is considered working for another company. But, clearly, as you have written it, this is not applicable anyway... you want to WORK in a second company as an employee or executive director.
You need to also be careful in small companies that you aren't actually doing work as an employee, while calling yourself a director and taking only fees. If you are selling, producing product, or doing the books for either company, you are not doing directors duties, you are an employee.
So... if I have this right, you want to own two companies as a sole shareholder in each company, and you want to work for each company that you own. And, your expectation is that after forming the first company, you are going to run on down to ACRA and form a second company with you as shareholder, director, and employee.
I predict this aint gonna happen. ACRA will reject you out of hand since you have an EP... you might get to be a shareholder but not a director... then MoM will refuse to issue a second EP, or might revoke your first EP to give you the second.
It might happen IF, a) You actually have a lot of money and a lot of experience... you present a very strong personal P&L, a solid business plan, and plenty of business experience, and I bet that someone will find a way to let you in. Or b), you apply for a PEP based on your income before coming into Singapore. PEP can work for more than one company.
After researching some of the posts in the forum I realized I may have a problem. Does MOM limit work to only the firm that sponsors your P1? As owner of both companies it never occurred to me that there could be a limitation on what work you conduct provided everything is declared to ACRA and IRAS.
Any thoughts?
Give us the legal status of the companies currently, your background and other details as I have noted above, and maybe there will be something else to add.
