Singapore, often regarded among the global elites as one of the key business hubs in the world. Singapore is so appealing as a global commercial hub that several of the world’s largest corporations, such as Google and Facebook, have established Asia-Pacific headquarters here. As a result of these investments in the country, new job possibilities for everyone are created. The country is rife with business possibilities, and it might be the ideal location for you to migrate and start a business. It doesn’t have to be difficult or perplexing to have a successful and full life here.
Today, we are going to explore what you need to know about:
- How to incorporate a business in Singapore, including the criteria for nominee directors
- Vital information on the employment pass application and process
- The key to a 90% success rate in your employment pass application being approved
- What to do once you’ve set up your company and got your employment pass
There are several processes and fees involved in establishing your company in Singapore and obtaining an Employment Pass. Following these procedures will make incorporating your business, applying for an Employment Pass, and receiving approval much easier.
Business Incorporation in Singapore
As a foreigner, there are certain fundamental criteria for forming a business. Until your employment pass is issued, your firm must first incorporate with a resident nominee director (temporarily).
The requirements to relocate or create your company in Singapore include each of the following:
- Company Secretary
- Local Registered Address
- Shareholders (corporate entities or individuals)
- Nominee Director (local resident) · Minimum S$1 paid-up capital (see the section about Employment Pass salary requirements)
- We recommend at least minimum SGD$80,000 paid-up capital for businessmen applying for an employment pass though!
- Acceptable qualifications: suitable degree from an accredited university, professional qualifications or specialized skills
- Your shareholders can be fully foreign, fully local, or a combination of those options, remember, a director can be included in your shareholders.
A Private Limited (Pte Ltd) corporation is the most common type of business entity in Singapore. In Singapore, private limited corporations are the most frequent and favored company structure. The company can have 1 to 50 shareholders and the business in itself is a legal entity, which means any liabilities the business might incur would fall on the business entity in name rather than that of the shareholders. Furthermore, private limited corporations are eligible for a variety of tax incentives, making them a popular choice among entrepreneurs.
The nominee director must be a Singapore resident. The Singapore director role can be passed on to you as the company director after your employment pass has been processed.
In order to incorporate your company, you need to:
- Register the company name
- File the incorporation with the Accounting and Corporate Regulatory Authority (ACRA)
Employment Pass Application
The Employment Pass application procedure includes a lot of subtleties, but it’s doable with enough planning and is available to people of all countries. Let’s start with the eligibility conditions. To be eligible, you must:
- Have a job offer in Singapore (incorporating your company in Singapore)
- The offer (your role in the company) must be a managerial, executive, or specialised job
- Effective 1 September 2020, fixed monthly salary starting at $4,500 (more on this in the next section)
- Acceptable qualifications: suitable degree from an accredited university, professional qualifications or specialized skills
If you’re over 40 and have a lot of expertise, you might be thinking if a monthly income of $4,500 is enough. The Employment Pass requirements differ for older applicants and those working in the financial services industry. The minimum wage for new applicants in the financial services industry has been raised to $5,000 as of December 1, 2020. Candidates who are older and have more experience need to be paid twice as much as those with the minimum qualifications. Salary requirements change for candidates of various nationalities.
Make use of the free Self-Assessment Tool to see if you satisfy the requirements for an Employment Pass application. According to the Ministry of Manpower (MOM) website, if your SAT score indicates that you are ineligible, you will most likely be refused if you apply.. However, if the SAT shows that you’re eligible for an Employment Pass, “there is around a 90% chance that the candidate will get a pass”.
While MOM doesn’t list all the approved institutions for an appropriate degree, it’s possible to check if your college or university fits the requirement. Check for the accreditation status using:
- Verification agencies: Dataflow or Risk Management Intelligence (RMI)
- International accreditation bodies
- The educational authorities in the country of the institution
Every application is thoroughly examined. The employment pass usually takes three weeks to process in most cases. However, depending on your application, the processing period for an employment pass may take longer.
The final decision is based on merit, salary, track records, work experience, skillsets, and the candidate’s native countries’ institution rankings.
Remember to begin with the Self-Assessment Tool. Even if you don’t presently qualify due to income, making some changes in the appropriate areas can boost your chances of success.
What’s to do next?
You’ve registered your business with your nominee director, a physical location in Singapore, and all of the other criteria for registration. The corporate secretary is hired for a one-year term. While your employment pass is being processed, your resident nominated director will be in charge for roughly three months. For a year, the registered office address remains the same.
When your company is incorporated in Singapore, you’ll receive the Company’s Constitution (Memorandum and Association of the Company) from ACRA plus a company business profile (Bizfile). These 2 documents prove that your company is incorporated in Singapore.
What about family? The good news is that an employment pass includes options for dependant passes and long-term visit passes for family members (common-law spouse, unmarried handicapped children over 21, unmarried step-children under 21, and parents). The minimum salary requirement for these extra passes is at least $6,000 fixed monthly income or if bringing in parents, the minimum salary is at least $12,000).
You’ll be transferring your company and your family to beautiful Singapore and enjoying those refreshing pools before you realize it, with the initial process of establishing up your firm in Singapore and securing our employment pass taking around 3 months.
EBOS can help!
The employment pass is a fantastic way to enter Singapore. Although there are many requirements, you will also enjoy many perks and benefits of working in Singapore.
At EBOS, we can assist foreigners who want to start a business in Singapore with everything from incorporation to applying for an employment pass, dependant’s pass, and even financial problems! At every step of the way, we’ll be there for you.
