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Starting a Business with a PEP holder friend

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futurebiz1
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Starting a Business with a PEP holder friend

Postby futurebiz1 » Mon, 05 Nov 2012 10:40 pm

Can I invest in a new business with someone who is a PEP holder in Singapore. I am a PR and am planning to invest in a new business with my friend who works in an MNC here on a Personalised EP. Is there any additional steps needed in such cases?

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Saint
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Postby Saint » Tue, 06 Nov 2012 9:29 am

A PEP holder can not set up a business in Singapore

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nutnut
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Postby nutnut » Tue, 06 Nov 2012 10:05 am

You can set up the business under your name and employ him, he will need to inform MOM of his change of company. He is also allowed to work for more than one company at a time if you need to set him up before he leaves, this is dependent on the contract with the MNC, sometimes they will not allow this.

It is possible, but, you will accept all risk as a PR in the new company, you can set up as a sole proprietor and employ him also, doesn't need to be a limited company. Bear in mind the minimum requirements for income on PEP, you need to give him a letter of offer with a salary.

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Postby Strong Eagle » Tue, 06 Nov 2012 11:07 am

Saint wrote:A PEP holder can not set up a business in Singapore


But the PEP can invest, ie, buy shares, and work for the company so long as MOM is notified and approves.

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Postby futurebiz1 » Tue, 06 Nov 2012 10:52 pm

That's what I thought. If he is in working in the country on PEP, can he not just invest in a company. IF u think of it, it is not fundamentally very different from buying shares. Of course, I will ask for legal opinions once we formalise things.Right now, it's only some ideas which we are floating around.

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Postby Saint » Wed, 07 Nov 2012 9:56 am

Strong Eagle wrote:
Saint wrote:A PEP holder can not set up a business in Singapore


But the PEP can invest, ie, buy shares, and work for the company so long as MOM is notified and approves.


I don't doubt you, but we were only recently told that a PEP holder is not able to be a Shareholder for a ACRA registered company

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Strong Eagle
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Postby Strong Eagle » Wed, 07 Nov 2012 11:39 am

Saint wrote:
Strong Eagle wrote:
Saint wrote:A PEP holder can not set up a business in Singapore


But the PEP can invest, ie, buy shares, and work for the company so long as MOM is notified and approves.


I don't doubt you, but we were only recently told that a PEP holder is not able to be a Shareholder for a ACRA registered company


Who told you that?

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Strong Eagle
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Postby Strong Eagle » Wed, 07 Nov 2012 11:41 am

futurebiz1 wrote:That's what I thought. If he is in working in the country on PEP, can he not just invest in a company. IF u think of it, it is not fundamentally very different from buying shares. Of course, I will ask for legal opinions once we formalise things.Right now, it's only some ideas which we are floating around.


Look, if you are referring to a private limited, the only way one invests in a private limited is through the purchase of shares. The only other way to put money into the company is via a loan. Loans must bear interest and have a due date.


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