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Can LTVP Holders be Directors of a Private Ltd Co?

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PriestFC
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Can LTVP Holders be Directors of a Private Ltd Co?

Postby PriestFC » Mon, 17 Jun 2013 12:05 pm

Hello All,

I currently hold a Long Term Visit Pass and would like to register a Private Limited Company with myself as a Director. I have my local Director sorted who is on a E.P.

I understand that you can become a Director on an Dependents Pass, just wondering if Long Term Visit Pass holders can be Directors of a Private Limited Company here in Singapore and register the company? I have my singpass account all set up and ready to go.

Any advice/input would be well received.

Thanks

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Strong Eagle
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Postby Strong Eagle » Mon, 17 Jun 2013 9:49 pm

By law, you can be a director as virtually anyone over 18 who isn't bankrupt can be a director.

However, you can bet money that your application will be scrutinized very carefully as it is a common scam to try and set up a company, then work for it to get around the inability to get a work permit.

You need to be able to prove that you will be an "outside director", that is, one who is not involved in the day to day management and operation of the company. If you are involved, then you are working for the company and you are in violation of your LTVP.

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Postby PriestFC » Tue, 18 Jun 2013 10:08 am

Thanks for your response Strong Eagle, much appreciated.

If you submit a letter of consent a little while after your application would this allow me to be an active part of the company, even while being on a LTVP???

I intend to be an active part of the company, but want to do it all above board. I was told that if you don't pay yourself a wage but simply only pull Director Fees (if profits permit) then this is in keeping within the terms of your pass? Have I been mislead?

Thanks again.

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Postby Strong Eagle » Tue, 18 Jun 2013 10:09 pm

PriestFC wrote:Thanks for your response Strong Eagle, much appreciated.

If you submit a letter of consent a little while after your application would this allow me to be an active part of the company, even while being on a LTVP???

I intend to be an active part of the company, but want to do it all above board. I was told that if you don't pay yourself a wage but simply only pull Director Fees (if profits permit) then this is in keeping within the terms of your pass? Have I been mislead?

Thanks again.


a) There is no such thing as a LOC for a LTVP holder. Only for a DP and LTVP+.

b) You have been mislead. Again, if you were an outside director, for example, a person who was a highly experienced accountant who sat on the board of a small manufacturing company, and from time to time, gave advice regarding the management of finances for the company, you would clearly be an outside director, and your director's fees would not be questioned.

If however, as an accountant, you were preparing the books, posting transactions, and generally handling the financial side of the company, you would be working for the company and that is illegal.

In your case, you are forming the company, not paying a salary, and aren't "outside" in any sense of the word. Note that PEP holders cannot do what you are talking about doing. Your actions will be viewed for what they are: A scam to get around LTVP employment restrictions.

If you actually have a viable business, with a business plan, contracts and clients, or solid contract and client potentials, and can demonstrate a working set of pro forma projections, then you should create the company and file for an EP from the company. Others have done this, but again, the key is proving that you have a viable business and are not simply trying to scam MOM and ACRA.

Otherwise, I think you'll get nowhere at a high rate of speed.

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Postby PriestFC » Wed, 19 Jun 2013 10:12 am

Thank you for your very clear explanation. I appreciate your time and advice.

It's good knowing all the facts before embarking on this journey.

Thanks again Strong Eagle.

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Re:

Postby GregorySG » Fri, 03 Mar 2017 11:11 pm

Strong Eagle wrote:
PriestFC wrote:Thanks for your response Strong Eagle, much appreciated.

If you submit a letter of consent a little while after your application would this allow me to be an active part of the company, even while being on a LTVP???

I intend to be an active part of the company, but want to do it all above board. I was told that if you don't pay yourself a wage but simply only pull Director Fees (if profits permit) then this is in keeping within the terms of your pass? Have I been mislead?

Thanks again.


a) There is no such thing as a LOC for a LTVP holder. Only for a DP and LTVP+.


Hi,

Those messages are a bit old so probably the rules have changed since.

FYI as of now it's possible to get a LOC with a LTVP.

"Who is eligible

To be eligible for a Letter of Consent, you need to be one of the following:

An LTVP or LTVP+ holder who is married to a Singaporean or permanent resident.
A Dependant’s Pass holder who is a dependant of an Employment Pass, EntrePass or Personalised Employment Pass (PEP) holder.
If you are a dependant of an S Pass holder, you should apply for a Work Permit, S Pass or Employment Pass instead.
The LTVP/LTVP+ or Dependant’s Pass has to be valid for at least 3 months, and you must have a job offer with a Singapore employer.
"

Source : http://www.mom.gov.sg/passes-and-permit ... ligibility

I am myself under a LTVP and gonna open a company with my wife (PR).

Thanks Strong Eagle for all your informative posts. Glad to join the community here!


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