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Starting up consultancy while being employed

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Fortan
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Starting up consultancy while being employed

Postby Fortan » Mon, 28 Oct 2013 11:43 am

I am looking at starting up my own consultancy business here in Singapore. My basic idea is that I get my current employer signed up as my first customer in order to secure my income for the contract period. I have two consultants who at the same time will build up the business and I will take care of the administrative part in my spare time/evenings/weekends.

How does the MoM look at this kind of thing here. I am currently an EP holder.

I am sure there must be someone out there who have gone down the same road and who can give me a heads up on pitfalls and on what other dangers I need to be aware of doing this.

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Postby Strong Eagle » Tue, 29 Oct 2013 12:18 am

You can't do this on an EP. PEP would allow you to work for two companies but you can't be the owner of the company.

To make this work, you'd need to form a company, then have that company apply for an EP for you. This has been successfully done by professionals with a track record and potential clients and contracts.

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Fortan
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Postby Fortan » Tue, 29 Oct 2013 7:50 am

Strong Eagle wrote:You can't do this on an EP. PEP would allow you to work for two companies but you can't be the owner of the company.

To make this work, you'd need to form a company, then have that company apply for an EP for you. This has been successfully done by professionals with a track record and potential clients and contracts.


I see, very interesting. So you can't have a registered company and a full time job next to it and work for both at the same time. Is there any reasoning behind that or it is just because they say so?

The case is a little complicated. I have been contacted by a global consultancy that wishes to expand in Asia Pacific. They want me to run that consultancy as Managing Director. I could chose to just dump my day job and go 100% into consultancy but that would leave me exposed to low income or no income during the period until I get some clients signed up. I am trying to avoid that. My idea was to start up the consultancy and continue to work for my current company and build up the first major contracts in my spare time - but apparently that won't work.

An alternative is that I agree with my current company that they can hire me as consultant for my new company, for the same rate as they are paying me in salary today. Once we have signed that agreement, I could establish the consultancy company and apply for the EP through the new company and I could continue working for them for a period until I manage to get enough clients - would that work?

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Postby sundaymorningstaple » Tue, 29 Oct 2013 9:40 am

Fortan wrote:
I see, very interesting. So you can't have a registered company and a full time job next to it and work for both at the same time. Is there any reasoning behind that or it is just because they say so?


As Singapore is a small place and we know the current problems (allegedly) with employment of locals, I can see 'some' logic as if you are employed, your only reason for being in Singapore is for that sole purpose. If you create your own company, then you would be working for yourself AND still possibly keeping a local from being employed, therefore, they are expecting you to do one or the other, but not being allowed to have your cake and eat it too.

Do I think it's fair or correct? No. But it's their country and we gonna have to play by their rules or leave the pitch. :?

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Postby Fortan » Tue, 29 Oct 2013 9:59 am

sundaymorningstaple wrote:
Fortan wrote:
I see, very interesting. So you can't have a registered company and a full time job next to it and work for both at the same time. Is there any reasoning behind that or it is just because they say so?


As Singapore is a small place and we know the current problems (allegedly) with employment of locals, I can see 'some' logic as if you are employed, your only reason for being in Singapore is for that sole purpose. If you create your own company, then you would be working for yourself AND still possibly keeping a local from being employed, therefore, they are expecting you to do one or the other, but not being allowed to have your cake and eat it too.

Do I think it's fair or correct? No. But it's their country and we gonna have to play by their rules or leave the pitch. :?


Well, that's why I came here to begin with. Because no one here seems to be able to do what I can do :)

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Postby maidsrch » Tue, 29 Oct 2013 12:58 pm

I believe its possible to hold mutiple jobs while on a PEP. Is this something that you can explore? As long as you meet the salary criteria, getting a PEP shouldnt be a problem, but ofcourse its an one time pass with a validity of 3 years.


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