Singapore Fact-File Part 1:
Business Formation for Individuals

1.5 Singapore Foreigners in Business

Limitations on foreigners in business

There are no restrictions on foreigners hoping to do business in Singapore; the government is very welcoming to foreign entrepreneurs and small businesses, in fact.

However, before entry, those holding travel documents from a number of countries (listed here) should obtain a visa.
For shorter stays in Singapore, a visit pass will be granted by the Immigration and Checkpoints Authority on entry.

Requirements for the granting of a visit pass include:

· A visa, if necessary (see above);

· A passport, valid for six months;

· A yellow fever vaccination certificate, if the applicant has been resident in, or has travelled through, an area with an infection problem;

· Evidence of sufficient funds for the duration of the stay;

· Onward or return tickets; and

· Completed disembarkation/embarkation card.

The holder of a visit pass is not permitted to work, or undertake any paid activity during their stay; both short and long-term passes are available.

For the overseas entrepreneur intending to start their own business in Singapore, the EntrePass will be more suitable than the traditional employment pass.

EntrePasses are only granted where the business owner intends to relocate to Singapore and run their business from there, where the business idea is truly entrepreneurial, where the plan is to create an incorporated entity (rather than a partnership or sole trader business), but the business has not yet in existence (or has been in operation for less than six months), and where there is paid-up capital of at least SGD50,000, and where the owner holds, or will hold, at least 30% of the shares.

Applications relating to certain categories of business will not, however, be considered. These include: coffee shops and food courts, bars and nightclubs, massage parlours, reflexology, acupuncture and Chinese medicine providers, and employment agencies.

The EntrePass application form , completed in English, should either be endorsed by a well-established Singapore business, or (in the absence of a sponsor), should be accompanied by a Banker’s Guarantee for SGD3,000. (This also applies in the case of passes for dependents, and if an EntrePass and a Dependent Pass are being applied for at the same time, then the marriage certificate must also be provided.)

The following supporting documents (plus an initial application fee of SGD40) are also required:

· Employment testimonials for the applicant;

· A business plan (which should not exceed 10 pages, but which should cover: the business idea, the product or service to be provided, an analysis of the market, a market plan, an operation plan, financial projections, details of the management team, and supporting documents relating to the aforementioned)

· Recent (within the last three months) passport photographs of the applicant;

· A copy of the personal details page of their passport; and

· Copies of educational certificates

The application and supporting documents should be submitted to the Ministry of Manpower via a SingPost post office, which will pass it on to the Ministry of Manpower (MOM). EntrePass applications are assessed jointly by the Ministry of Manpower and the Standards, Productivity and Innovation Board, and can take up to six weeks to process as a result.

If the application is successful, an Approval In Principle letter will be granted (valid for 6 months), following which the entrepreneurs should register their company with the Accounting and Corporate Regulatory Authority (ACRA), within 30 days.

When the company has been successfully registered, the following should be sent to the Ministry of Manpower’s workpass division:

· The company’s business profile;
· A bank statement showing a minimum share capital of SGD50,000;

A medical test may also be required; the initial approval letter will explain whether this is required or not.

Once approval has been granted, the pass should be requested through the Employment Pass Online portal (this can also be done in person, at Ministry of Manpower counters in Employment Pass Service Centres, but the authorities strongly encourage applicants to complete the process online, if at all possible). The EntrePass can be requested by the applicant themselves, or by a representative.

Following the payment of the annual fee, a notification letter will be issued; the applicant should then go to the Employment Pass Service Centre for fingerprinting and registration of their photographs. The pass can be collected from the Service Centre four days later. EntrePasses are renewable after either one or two years, and the business person in question must relocate to Singapore to run their business within six months of the pass being granted. By the first renewal, the business must be in operation, or have secured third-party funding, and on the occasion of subsequent renewals, the levels of local employment being generated by the business, and the adequate payment of corporate income tax must be demonstrated.

Three different categories of EntrePass are granted, depending on salary levels and experience:

Q1 Pass: For those at a SGD2,500-SGD3,500 salary level
P2 Pass: For those at a SGD3,500-SGD7,000 salary level
P1 Pass: For those at a SGD7,000 or more salary level

Each of the passes entitles the applicant to bring over their spouse and dependent children under the age of 21, but there are more restrictions for holders of Q1 passes. Additionally, P1 EntrePass holders can apply for permanent residence after just one year, while Q1 and P2 pass holders must generally wait for two years.

Entrepreneurs seeking to remain in Singapore on a permanent basis can seek permanent residence either one or two years after being granted an EntrePass); further details on this are here.

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Part 1: Singapore Business Formation for Individuals

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