Hello,
I have read about doing business in Singapore on various web sites and on this forum, but I am still confused about what to do in my particular case.
I'm on a DP and have about 14 months left in Singapore (might be extended). I have never worked in Singapore but I now have an opportunity to start a business as an independent mixing engineer (music production). I have the gear, the skills and some clients already, I just need to find a way to legally be paid for my services.
Because this will likely be a 1-year lifespan activity only and part-time, and the revenues will probably be low (estimated $1500 monthly, although could increase after a few months), there is no point in incorporating a company.
The proper way to do this seems to be a sole proprietorship but I understand the rules have changed last year and a foreigner now have to either apply for an EntrePass (which I think isn't worth it for my project), or create a partnership with a resident partner. Is this correct? I couldn't find any detailed info on this local partner. Do I have to pay him? Does he have to be active in running the business? Does he have to assume any liability in the business?
Alternatively, I have thought about using a small business I still own in my home country (France). Is there anything illegal from Singapore's perspective about using a foreign small business to issue invoices to individuals or companies locally? There is no product or trade involved, just services.
Thanks a million if you can help me find my way through this.
Small business for a Dependant Pass holder
A foreign business issuing invoices to Singaporean companies or residents is not a problem. But registeriung a business in Singapore is also easy, quick and cheap.
But you need a Letter of Consent (LoC) to do any paid work while holding a DP. This includes work for your own company or business. Better not break this rule!
There is a lot of false information on the web about running a business in Singapore while holding a DP. The rules also changed at some point in the last few years.
Better contact MoM and make sure they agree to everything you do, as the consequences can be difficult (deportation and ban!).
I guess the next step is to contact the ACRA and the MoM to confirm and get detailed info on this then.
Thank you.
Ok I have contacted ACRA and MoM but didn't get a lot more information for now. I have also contacted a consulting company and here is what they told me:
Recently the MoM has stopped granting LoCs to SP owners, including those who are already in business and had previously got their LoC for exactly the same business. They either have to shift to a Pte Ltd or go out of business. This is not something on which the MoM communicates officially, but they seem to consistently reject all LoCs.
Of course this could be a vicious selling technique but it seems to corroborate things I already read or heard. Any of you heard about that?
Can I apply for a LoC myself or do I have to use a registered filing agent? Does it cost something to apply for a LoC? If it is simple and cheap I'd like to try anyway and see for myself.
Here's the answer directly from MoM's mouth (or, rather, website):
http://www.mom.gov.sg/passes-and-permit … of-consent
As far as I understand, only employers or appointed employment agents can apply and there is no fee (by MoM, an agent would of course charge you if you engage one).
But to me this sounds like another loophole closed that previously allowed people to work in Singapore in freer than desired constellations. I am afraid you won't suceed with what you plan to do.
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