Setting Up a
Singapore Branch Office

Singapore Employment Pass

The Employment Pass (EP) is the main type of Singapore work visa issued to foreign professionals, managerial personnel (managing directors, general managers, CEOs), executives or specialists who wish to work in Singapore.

The Ministry of Manpower (MOM) allows foreign professionals to apply for a Singapore Employment Pass after they have incorporated their Singapore company to enable them to live and work in Singapore. The EP neither falls under any quota system nor is there a monthly levy charge for EP.

You may apply for a Singapore Employment Pass (EP) , if:

• You are a foreign entrepreneur, professional or managing director of a Singapore company and wish to relocate to Singapore to manage your company operations;
• You are a locally-incorporated Singapore company and need to hire foreign employees;
• You have an employment offer from a prospective Singapore employer. In this case, you will need the company to expedite the EP application on your behalf.

Employment Pass Eligibility Requirements

Singapore Employment Passes are carefully assessed by the Ministry of Manpower by taking into consideration a number of factors such as the applicant’s qualifications, working experience, job profile, economic contribution, employer’s track record and the value add of the applicant to the Singapore workforce.

To be considered for an Employment Pass, you must have a fixed monthly salary of at least S$3,000 and possess one or more of the following:

• Acceptable educational qualifications e.g diploma or degree
• Professional qualifications
• Specialist skills
• Work related experience

The Ministry of Manpower evaluates each application based on the individual’s merits. Other factors that are also considered include:

• Salary of applicant
• Age of applicant
• Role & responsibilities
• Reputation of the company
• Company’s paid-up capital
• Applicant’s citizenship
• Employer’s track record

Having a recognised educational qualification does not guarantee a successful EP application as the applicant also needs to satisfy other criteria such as relevant work experience and/or professional skills.

Similarly, an applicant who does not possess a recognized educational qualification may not necessarily be rejected an EP if he possesses other compensating qualities.

Pass Types

There are three categories of Employment Pass: P1, P2 and Q1 Pass.

The P Passes are for foreigners seeking managerial, executive or specialist jobs.

• P1 Pass – for applicants earning a fixed monthly salary of at least S$8,000.
• P2 Pass – for applicants earning a fixed monthly salary of at least S$4,500 and possessing recognised qualifications.
• Q1 Pass – for applicants earning a fixed monthly salary of at least $3,000 and possessing recognised qualifications.

Employment Pass Eligibility Summary Table

Important Note:

With effect from 1 st January 2012 the qualifying salary requirements for the EP has been increased.

1. WEF 1 January 2012, the EP salary threshold was raised to S$8,000, S$4,500 and S$3,000 for the P1, P2 and Q1 pass respectively, while the S pass salary threshold remained at S$2,000. For existing EP and S pass holders whose passes expired on or after 1 January 2012, and are affected by these changes, MOM will grant a one-off renewal of up to 2 years per the earlier thresholds.

2. Pass holders who have applied/who apply for renewal before/after 1 January 2012 are treated equally and given the same one-off renewal. Subsequent renewal applications will be assessed based on the prevailing work pass criteria.

Passes for Family Members

All Employment Pass holders can apply for Dependant Pass and/or Long-Term Social 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

If you are an Employment Pass or an EntrePass  holder, your spouse is eligible to work in Singapore as a Dependant Pass holder. However, your prospective employer is required to apply for a Letter of Consent (LOC) with Ministry of Manpower. (Note: Not eligible for S Pass holders)

Long-Term Social Visit Pass

P Pass holders may also apply for Long-Term SocialVisit Pass for their:

• Common law spouse
• Unmarried daughters above 21 years of age
• Handicapped children
• Step-children
• Parents/parents-in-law

A Snap Shot

Procedure and Timeline

Rikvin submits all Employment Pass applications electronically to Ministry of Manpower as the application process is shorter. This way, you will also learn of your application outcome sooner. The process consists of the following steps:

1. Obtaining authorization code to submit application online for newly incorporated company. Upon submission, it takes about 7-14 days for Ministry of Manpower to send the authorization code.
2. Submission of application online. It takes Ministry of Manpower between 1-15 working days to process the application.
3. Upon receiving the In-principle Approval (IPA) notification, we will make arrangement for the collection of your EP.

Documents Required for Employment Pass

Rikvin requires the following documents for submission of Employment Pass application in Singapore:

• Resume or CV stating your educational and employment history (download Singapore Employment Pass Application form)
• Copies of educational certificates and past employment testimonials
• A copy of the personal particulars page of your passport

* Any documents that are not in English must be translated into English by an official translation service.

Approval and Collection of Employment Pass

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 at 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 EP you will be required to present:

• A copy of the IPA letter
• Recently taken passport size photograph
• 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 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.

Approval of Employment Pass Application

Singapore Employment Pass Validity

The validity period of an EP varies for:

• First-time applicants – up to two years
• Employment Pass renewals – up to three years

Rejection of Employment Pass Application

In the event that your Employment Pass application is rejected by 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 as per their request, if any. Please note that it may take three weeks or more to process an appeal, depending on the complexity of the case.

Change of Employer

Employment Pass holders must apply for a new pass whenever they change employers. There is no need to cancel the existing pass prior to application for a new pass. Ministry of Manpower evaluates each application for a new pass based the applicant’s qualifications, work experience, and employer credentials. A new pass will be issued once the old pass is cancelled.

Renewal of Employment Pass

The Ministry of Manpower will mail an Employment Pass Renewal Form to your employer’s address two months before your EP expires. You should submit the renewal application at least  four weeks prior to the expiration of your EP. Once approved, your employer will receive a letter of notification and the new pass is ready for pick up at the Ministry of Manpower.

Permanent Residence Eligibility

EP pass holders of P1, P2 and Q status are eligible to apply for Permanent Residence through Professional, Technical & Skilled Workers scheme. There is no designated waiting period but since one of the documents required is six months of salary record, hence it is advisable to wait for at least six months prior to application. It is, however, advisable for Q1 pass holders wait for at least two years before applying for permanent residence.

Important Information About Personalised Employment Pass:

For existing EP holders and overseas professionals that meets certain criteria, Singapore has introduced a new type of employment pass named Personalised Employment Pass (PEP) that is not tied to any employer. For more details, please refer to Singapore Personalised Employment Pass page.

Foreign entrepreneurs and corporations,who wish to form a Singapore company are required to appoint a professional firm to act on their behalf. The employment pass application can only be submitted to the relevant authorities once the company has been incorporated.

The timeline of forming companies in Singapore is fully computerized and as a result, the actual formation of the entity can be accomplished within three hours, if all documents are in place. Time may vary if you are not physically present in Singapore to sign on the documents. To form a Singapore company and secure your Employment Pass, please refer here for more information Singapore Company Registration + Employment pass application.

Singapore Branch Office Registration Requirements

A Branch Office in Singapore is an extension of a foreign parent company registered outside of Singapore. The purpose of a Branch Office is to facilitate operation and revenue generation in Singapore for the foreign parent company. It is considered a non-resident for tax purposes, and therefore not eligible for tax incentives and exemptions available to Singapore private limited companies.

Taxation of Singapore Branch Office

A Singapore Branch Office is considered a non-resident company for tax purposes. Non-resident companies are not eligible for tax incentives for new start up or resident companies; and therefore most foreign companies prefer to set up a Subsidiary Company rather than a Branch Office.

Summary of Setup Requirements for Branch Office in Singapore

• 1 Corporate Shareholder + 2 Singapore Resident Agents
• A Registered Office Address in Singapore

Singapore Companies Act does not permit foreign companies to self register a Branch Office. You can engage Rikvin, Singapore’s leading specialist in registration of companies with ACRA, to assist you with the registration of a Branch Office at Accounting and Corporate Regulatory Authority of Singapore (ACRA). We can set up your Branch Office in less than 24 hours provided you have all required documents ready.

What you need to know before Registration

Name: The Branch Office name must be the same as the parent company. ACRA must also approve the name before the Singapore Branch Office can be registered. ACRA will reject a proposed name for the purpose of incorporation if:

• It is identical to another existing business name
• It is undesirable
• Names or trademark which are similar to established names such as Coca Cola and Temasek

Shareholders: The parent company must own 100% of the Branch Office.

Resident Agents: Singapore Branch Office must have at least two agents who are be “ordinarily” residents in Singapore. Singapore resident agents can be Singapore citizens or permanent resident; or holders of Employment Pass or Dependant’s Pass. Rikvin can assist you in the application of Employment Pass for the two foreign management staff members relocating to Singapore to run the Branch Office operations. These management staff members can act as the local agents for the Branch Office upon approval of their Employment Pass applications.

There is no limit on the number of additional local or foreign agents a Singapore Branch Office can appoint. The agent must be at least 18 years of age, and must not be bankrupt or convicted for any criminal malpractice in the past.

Company Secretary: A Singapore Branch Office is not required to appoint a Company Secretary. It is, however, highly recommended to have a Company Secretary to help stay in compliance with the statutory regulations.

Registered Address: Every business registered in Singapore is required to have a registered office address. The registered address must be a physical address and cannot be a PO Box. Use of residential address is allowed for certain types of business.

Memorandum and Articles of Association: The parent company’s Memorandum and Articles of Association must be lodged with ACRA. Memorandum specifies the activities in which the company may engage whereas the Articles of Association specifies the rules governing the internal management of the company.

For Foreigners Setting Up a Branch Office – what you need to know

Engage a Professional Firm: Foreign corporations and individuals must engage a professional firm that specializes in business setup in Singapore to register a Branch Office.

Work Visa for Foreign Corporation Management Staff: Foreign Corporation that plans to relocate their management staff to Singapore to run their new Singapore Branch Office setup must apply for Employment Pass. For more details, please refer to Singapore Employment Pass (EP).

Foreign Corporations without Relocation to Singapore: Foreign corporations that do not intend to relocate foreign staff members to Singapore to operate the Branch Office can engage Rikvin’s Nominee Agent Service to appoint two local agents to fulfill the registration requirement.

Approval and Renewal Information

The registration process with ACRA is a two-step process:

1. Name approval
2. Branch Office registration

ACRA does not allow foreign companies to self-register. You can engage Rikvin to assist you in registering your Branch Office. It is not necessary for you to be in Singapore for the registration of the Branch Office. The approval process takes approximately between 1-2 days provided all documents are in place.

Once approved, ACRA sends out a confirmation of registration via email. The registration is valid for one year and subject to an annual renewal.

Opening of a Corporate Bank Account

Once the Branch Office has been incorporated, you may open a corporate bank account with any of the local or international banks based in Singapore, and in some cases, overseas.

If you are unable to come to Singapore, you may choose a bank that allows opening of a corporate bank account without your presence. Standard Chartered Bank and HSBC are two of the international banks that allow you to open a bank account without you having to be Singapore.

Post Incorporation – What you need to know

Licenses and Permits: Some business activities in Singapore are subject to regulation by government authorities. Even if your business firm has been registered you cannot begin operation unless you have the necessary approval or license from the relevant government authorities.

Private schools, video companies, travel agencies, liquor distributors, moneylenders, banks, Financial advisers, childcare centers and importers, wholesales and retailers of liquor licenses are some examples of business that need permits to operate.

Registered Office Hours: You must have a registered office address and the office must be open to public for minimum of three hours per day during normal business hours on weekdays.

Registration Number: Business registration number issued by ACRA must be on all letterheads, invoices, billings or other documents used for official business communications.

Custom Registration: If your business activities involve import, export and transshipment in and out of Singapore, you will need to register your Branch Office with the Singapore Customs and obtain a CR Number or commonly known as Custom Registration. The central registration number is mandatory for Singapore companies or organizations engaged in trading activities.

Singapore Goods and Services Tax Registration: Goods and Services Tax (GST) is a tax on the supply of goods and services in Singapore and on the import of goods into Singapore. Goods exported from Singapore and international services provided from Singapore are exempt from GST. The current rate is 7%.

All Singapore business must register for GST if their annual taxable revenue is more than S$1 million, or currently making taxable supplies and the annual taxable revenue is expected to be more than S$1 million. The business is expected to register for GST within thirty days from the time it is deemed liable.

You may also choose to register for GST voluntarily. Approval for voluntary registration is at the discretion of the Comptroller in IRAS. Once approval is given, you must remain registered for at least two years.

Registration of Singapore Central Provident (CPF): The Central Provident Fund or CPF is a compulsory pension fund scheme in which the employer and employee contribute a percentage of the monthly salary to the fund. CPF contribution by the employer is mandatory for all local employees who are Singapore citizens or permanent residents earning more than S$50 a month. The maximum CPF contribution rate for employer and employee is 14.5% and 20% respectively and can be lower depending on certain factors such as employee age, permanent resident status, etc. CPF contribution for foreign employees is not required.

Ongoing Singapore Company Statutory Compliance Considerations

Once your Singapore Branch Office is registered, you must comply with the statutory requirements set by ACRA and Inland Revenue Authority of Singapore (IRAS). For more details, refer to Post Incorporation.

Step 1 – Submit Incorporation order form.

Please provide us your email address and we will email you the necessary incorporation forms.

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Upon receipt of the above from you, we will

• Check your proposed company’s name availability
• Follow-up with you to clarify queries (if any) and advise accordingly
• Send you an invoice for our services.

Step 2 – Make Payment

Upon receiving the payment for our services, we will prepare the incorporation documents to be duly signed either in Singapore before us or overseas before Notary Public.

Step 3 – Incorporate Company

Upon the signing of the incorporation documents, we will proceed to register the Singapore Company with Accounting and Corporate Regulatory Authority of Singapore (ACRA). Once the company has been incorporated, you may proceed to open a corporate bank account.

Step 4 – Apply for Employment Pass

Rikvin submits all Employment Pass (EP) applications electronically to Ministry of Manpower (MOM) as the application process is shorter, and subsequently you will also learn of your application outcome sooner.

The process consists of the following steps:

• Application to obtain MOM authorization code to submit application online. Upon submission, it takes about 7-14 days for Ministry of Manpower to send the authorization code.
• Submission of EP application online. It takes MOM between 1-15 working days to process the application.
• Upon receiving the In-principle Approval notification, we will make arrangement for the collection of your EP.

The application for the employment pass can only be done once the company has been incorporated. It is not necessary to be presence in Singapore while the application is being processed.

Documents Checklist

Foreign companies have to engage a professional service bureau for the registration of a branch office. Rikvin can assist you in the setting up your branch office. The following documents are required when registering a Branch Office in Singapore:

• A certified copy of Certificate of Incorporation of foreign parent company.
• A certified copy of Memorandum and Articles.
• Information such as nationality, passport number and other personal information of directors of the branch office.
• A memorandum executed by or on behalf of the foreign company stating the powers of the local directors, if any.
• A memorandum of appointment or power of attorney stating the names and addresses of two or more residents in Singapore to act as authorized agents to perform services and accept any official notices served to the company.