Seeking advice to set up company with Employment Pass

Hi guys,

I and my wife are working at the MNCs under S-Passes. A year ago, I set up my own company in the home country. As the business taking off, I partner with a Singaporean to offer the service here in Singapore under his own LLC company. Now revenues in both countries increase over the months, I am thinking of quitting my current company to set up a Pte Ltd to start the business in Singapore. I and my Singaporean partner will be the 2 shareholders. At the moment, I will commit $100k SGD and my partner will commit $30k SGD as paid up capital. He will put in another $70k by July next year. Understand that setting up a company with Entre Pass is impossible since the government requirements are quite strict, I will go with the Employment Pass route. I have a few questions, hope you guys can enlighten me.

1. With $130k SGD as paid up capital, what is the chance of getting Employment Pass approved given that I will pay myself $6k/month (just in case I can sponsor dependent pass for my wife if she get retrenched). Our monthly revenue is $15k and profit around $4k. If I can work full time, I believe I can double down the revenue. My partner will not draw any salary until our profit can cover both of us working full time. And we do have plan to expand our business to other countries in the region.

2. Is it possible to declare paid up capital as $200k to increase the chance of getting EP approved?

3. If the company is incorporated and worst case my EP rejected, what should I do? Dissolve the company and take back the capital?

4. If the company is incorporated, my EP approved, I am drawing $6k salary, and I put half of my salary into savings. Is it possible to inject my savings as capital to the company?

Thank you guys.

Under existing EP, you can’t register your company as its violating your own declaration to the present employer.

Floating your capital of $100k and justify that your company is able to generate that much profit (not revenue) so that your company can distribute profit of $6k (must be fixed) to you and need to declare how much your other partner gets the distribution of the profit.

How are you going to show your paid up capital $200k? Avoid declaring any false statement to MoM, you will be in trouble. If pass rejected, it’s obvious that as a foreigner you cannot be a partner in a Singapore registration company.

Declaring $6k then injecting back with half will be termed as false declaration to gain EP status or eligible for DP applying.

I would suggest check with your councillor to advise you in correct way. Did you declare to your present employer that you are holding up a business at your home and registered under your name? Any false declaration will be deemed as violation of PDC to your  employer. Good luck

I understand from your post that you already started the business while still on EP.
Be VERY careful, because this is ILLEGAL! If found, you will lose your chance to have either job or business here.

Thank you for your reply.

I will not register the company under my name. My local partner will register a company and declare that I am a shareholder. He is also the director of the company. Once incorporated, he will apply Employment Pass for me and if MOM approves the EP, he will  resign and appoint me as a director. That is our plan.

If that is the case, we will declare the paid up capital with whatever we have on hand which is $130k. I hope that amount will be enough for MOM to justify my EP application.

If pass rejected, I am still be the shareholder of the company right? If the company is making profit, how could I take home that profit?

Let say if we want to inject more capital into the company for operation and market expansion, what is the best way?

At the moment, I did not declare my business to my employer as I dont see any such statements in the contract with the company.

Let say I use my money to buy stocks and these stocks returns profit, if I withdraw the money to my Singapore bank account, would that be considered is illegal too?

Being (passive) shareholder and earning profits is allowed while on EP (provided you tax those earnings properly). But you cannot in any way be actively involved in running the business or making decisions regarding it (other than normal voting rights by shareholders).

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