Singapore Entrepreneur Pass
The EntrePass is designed to facilitate the entry and stay of entrepreneurs who are ready to start a new business and be actively involved in the operation of the company in Singapore. The EntrePass, with an initial validity period of one year, will be issued upon the approval of a sound business proposal. The EntrePass also allows the immediate family members to live in Singapore while the business develops. With the EntrePass, an entrepreneur may leave and re-enter Singapore frequently with ease. It is renewable for as long as the business remains viable.
EntrePass applicants will be assessed on the credibility of their proposed Business Plan, which should include the objective or nature of the business; products or services to be offered; marketing strategies; development plans and milestones; projected sales turnover; intended amount of investment and staffing plan. As of 28 Sept 2008, the EntrePass visa requirements have been changed to cater to genuine entrepreneurs intending to use Singapore as their spring board to Asia Pacific markets. With these new changes, EntrePass applicants will be assessed on their economic strengths based on contributions they can make in terms of total business spending and their ability to hire local employee. The new conditions and requirements are as follows:
EntrePass Eligibility Requirements
EntrePass applicants will be assessed on the credibility of their proposed Business Plan, which should include the objective or nature of the business, products or services to be offered; marketing strategies, development plans and milestones, projected sales turnover, intended amount of investment and staffing plan.
As of 28 Sept 2008, the EntrePass visa requirements have been changed to cater to genuine entrepreneurs intending to use Singapore as their spring board. With these new changes, EntrePass applicants will be assessed on their economic strengths based on contributions they can make in terms of total business spending including their ability to employ local staff.
The new conditions and requirements are as follows:
- Incorporate a company with the Accounting and Corporate Regulatory Authority no more than 6 months at the point of submission of the EntrePass application
- Own 30%-100% of shareholding in the company
- Have relevant experience and track record in creating and managing successful businesses
- Provide S$50,000 and above in paid-up capital for the new company
- Submit a 10-page business plan detailing business goals and objectives. Renewal of EntrePass is contingent on achieving goals and objectives outlined in the business plan
Business Plan Requirements
One of the key requirements for the application of EntrePass is a 10-page comprehensive business plan that outlines the goals and objectives of the proposed business venture. The business idea must be entrepreneurial in nature. Coffee shop, hawker stall, massage parlour, karaoke lounge and employment agencies are not considered entrepreneurial businesses, and therefore not applicable for EntrePass.
The business plan must also include a strategy to meet the requirements stipulated by Ministry of Manpower in which your business venture must demonstrate in a one-year period that it will meet the employment requirement of a minimum number of Singaporean or local workers; and with a Total Business Spending (TBS) of:
- P1 Pass – 8 local employees; TBS S$300,000
- P2 Pass – 4 local employees; TBS S$150,000
- Q1 Pass – 2 local employees; TBS S$100,000
Subsequent renewals of the EntrePass are contingent on meeting these requirements and on achieving the goals and objectives in the business plan. It is, therefore, extremely crucial to have a well drafted business plan.
| Pass issued | Criteria for renewal | Number of years approved |
|---|---|---|
| P1 | - Company to employ at least eight local employees*; AND - Company to demonstrate TBS** of S$300,000 over the past 12 months. |
Two years if Net Assert Value is positive One year if Net Asset Value is negative |
| P2 | - Company to employ at least four local employees*; AND - Company to demonstrate TBS** of S$150,000 over the past 12 months. |
Two years if Net Assert Value is positive One year if Net Asset Value is negative |
| Q1 | - Company to employ at least two local employees*; AND - Company to demonstrate TBS** of S$100,000 over the past 12 months. |
One year Approved for one year for 1st renewal only; companies must upgrade to P by second renewal |
** Total Business Spending (TBS) = [Total Operating Expenses – (Royalties/Franchise Fees/Know How Fees to Overseas Companies + Work Subcontracted to Overseas Companies + Remuneration to Applicant & Immediate Family)]
Most entrepreneurs can obtain an EntrePass work visa easily. The approval of the EntrePass rest largely on the business plan in which the business idea, the strategies to develop the business and to meet the requirements on Total Business Spending as well as job creation for Singaporean workers are crucial. The business idea must be entrepreneurial in nature. Coffee shop, hawker stall, massage parlour, karaoke lounge and employment agencies are not considered entrepreneurial businesses, and therefore not applicable for EntrePass.
Other important factors are the amount of paid-up capital invested in the business venture (minimum S$50,000 for EntrePass applicants), current citizenship, track record in developing business ventures, and educational background.
Pass Types
There are three categories of Employment Pass:
- P1 Pass
- P2 Pass
- Q1 Pass
Passes for Family Members
All Employment Pass holders can apply for Dependant Pass and/or Long-Term Visit Pass for their family members.
Dependant Pass
Both P and Q1 Pass holders can apply for Dependant Pass for their:
- Spouse
- Unmarried children under 21 years of age
Long-Term Visit Pass
P Pass holders can also apply for Long-Term Visit Pass for their:
- Common law spouse
- Unmarried daughters above 21 years of age
- Handicapped children
- Step-children
- Parents/parents-in-law
Q Pass holders are not eligible for the application of Long-Term Visit Pass for their immediate family members.
A Snap Shot
| Pass Type Granted to Employment Pass Holder | Dependant Pass | Long-Term Visit Pass |
|---|---|---|
| P | Yes | Yes |
| Q1 | Yes | No |
Procedure and Timeline
Since the requirements for EntrePass application requirements are more rigorous than that of Employment Pass, Ministry of Manpower generally takes four to six weeks to process an application. If there is further clarification required by Ministry of Manpower it will delay the process of approval.
Documents Required for EntrePass Application
The following documents are required for all EntrePass applications:
- EntrePass application form 8
- A copy of educational certificate
- One passport-size photograph taken within the past three months
- A copy of the passport personal particulars page
- MOUs or contracts with potential clients for the new business, if any
- Brochures, press releases, or any other business collaterals from previous or existing business ventures
- A well-drafted, 10-page business plan detailing business goals and objectives (download form)
Collection of EntrePass upon Approval
Once the application is approved, the Ministry of Manpower will issue an In-Principle Approval (IPA) letter. Upon the receipt of an IPA, and you have not yet registered a company with Accounting and Corporate Regulatory Authority of Singapore, you must do so within 30 days.
Ministry of Manpower will issue the final approval letter once you submit a printout of a new company registration and proof of paid-up capital (minimum of S$50,000) injected into the new business. With the final approval letter, you have six months to relocate to Singapore to start operating your new company.
Once the application is approved, the Ministry of Manpower will issue an In-Principle Approval (IPA) letter via email. The IPA letter must be produced upon collection of the EP from the Work Pass Division at Ministry of Manpower. An IPA letter is valid for Six months from the date of notification of approval.
To collect your EntrePass you will be required to present
- A copy of the IPA letter
- Passport size photo
- Original passport with the entry embarkation cards
- Medical exam report* (if the In-Principle Approval states that you require one)
- Any other documents that are requested in the approval letter
* You may get a medical examination done in your own country through an established clinic/hospital or in Singapore. Most clinics in Singapore can provide medical examination and report within a day.
Entry Visa into Singapore
If you are overseas and require an entry visa to Singapore, your IPA letter will include a single journey entry visa. Upon your arrival in Singapore, we will make an appointment with Ministry of Manpower on your behalf for finger printing. Upon completing the procedures, your pass will be ready in 4 working days.
You may collect the pass at Ministry of Manpower personally or authorize Rikvin to collect it on your behalf.
EntrePass Validity
The validity period of an EntrePass varies for:
- First-time applicants – Up to 2 years
- EntrePass renewals – Contingent on meeting the requirements of the Total Business Spending and employment of local workers.
Renewal of EntrePass
Renewals of the EntrePass are contingent on meeting the requirements stipulated by Ministry of Manpower in which your business venture must demonstrate in a one-year period that it will meet the employment requirement of a minimum number of Singaporean or local workers; and with a Total Business Spending as how in the table below:
EntrePass Renewal Eligibility Summary
| Pass Type | Criteria for Renewal | Number of Years Approved |
|---|---|---|
| P1 | - Company to employ at least eight local employees; AND - Company to demonstrate TBS** of S$300,000 over the past 12 months. |
Two years if Net Assert Value is positive One year if Net Asset Value is negative |
| P2 | - Company to employ at least four local employee; AND - Company to demonstrate TBS** of S$150,000 over the past 12 months. |
Two years if Net Assert Value is positive One year if Net Asset Value is negative |
| Q1 | - Company to employ at least two local employees; AND - Company to demonstrate TBS** of S$100,000 over the past 12 months. |
Approved for one year for 1st renewal only; companies must upgrade to P by second renewal |
** Total Business Spending (TBS) = [Total Operating Expenses – (Royalties/Franchise Fees/Know How Fees to Overseas Companies + Work Subcontracted to Overseas Companies + Remuneration to Applicant & Immediate Family)
Rejection of Application
In the event that your EntrePass application is rejected by the MOM, Rikvin will investigate why your application has been rejected. Based on the reasons provided by MOM, we will submit an appeal that will address the issues outlined by MOM and also include additional documents per their request, if any. MOM will take a minimum of three weeks or more to review your appeal.
Why Hire Rikvin
As of September 28, 2009, the new eligibility requirements for application of EntrePass have become more rigorous; the application process has, thus, become more complex. Unless, you have the necessary time and experience, it is advisable that you engage a professional firm to assist you with the application.
At Rikvin, we have been helping clients with incorporations of their businesses and work pass applications since 1998. Our team of experts is highly experienced and we can process your application and provide appropriate guidance so that you may avoid all the unnecessary frustration and pitfalls. We have business plan writers on staff to help create a good business plan, which is critical factor in the approval process for the application of your EntrePass.
As we assist you through the process, we will conduct all follow-ups and liaise with each authority on your behalf. Even in the rare event that your application is rejected, we will have a thorough inquiry into why it was rejected so that we can help you appeal successfully with MOM. The comprehensive services we provide can help you simplified this lengthy and complex process, and consequently, help maximize your chance of getting an EntrePass.
Permanent Residence Eligibility
EntrePass holders of P1, P2 and Q status are eligible to apply for Permanent Residence. There is a designated waiting period of six months since one of the assessing criteria is to have a minimum of six months pay slips, and preferably with IRAS tax assessment.