Singapore Company Incorporation
with EntrePass

Singapore Entrepreneur Pass (commonly known as EntrePass) Scheme

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 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 do business in Singapore. 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:

• The Company must not be registered for more than six months at the point of application
• Own 30%-100% of shareholding in the company
• Have relevant experience and track record in creating and managing a business successfully
• Provide S$50,000 or more 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 an 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 shops, hawker stalls, massage parlours, karaoke lounges and employment agencies are not considered entrepreneurial businesses, and therefore are not applicable for an EntrePass application.

The business plan must also include a strategy to meet the requirements stipulated by the Ministry of Manpower demonstrating that your business venture, within a 1-year period, will meet the employment requirements of a minimum number of Singaporean or local staff, and a Total Business Spending (TBS) as follows:

• 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.

* The employees need to possess at least NTC2/NITEC or vocational qualifications obtained after at least two years of full-time studies.

** 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 rests largely on the business plan including the business idea, the strategies to develop the business and to meet the requirements of a Total Business Spending as well as job creation for Singaporean employees. The business idea must be entrepreneurial in nature. Coffee shops, hawker stalls, massage parlours, karaoke lounges and employment agencies are not considered entrepreneurial businesses, and therefore not applicable for an EntrePass application.

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 Singapore 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

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

Long-Term Visit Pass

P Pass holders can also apply for a 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 a Long-Term Visit Pass for their immediate family members.

A Snap Shot

Procedure and Timeline

The Ministry of Manpower generally takes four to six weeks to process an application, since the requirements for an EntrePass application are more stringent compared to those for an Employment Pass. If there is further clarification required by the Ministry of Manpower it may extent the approval period.

Documents Required for EntrePass Application

The following documents are required for all EntrePass applications:

• Singapore EntrePass application form 8
• A copy of educational certificates
• 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 Singapore EntrePass Business Plan form)

Collection of EntrePass upon Approval

Once the application is approved, the Ministry of Manpower will issue an Approval-In-Principle (AIP) letter. Upon the receipt of an AIP, you have not yet registered a company with Accounting and Corporate Regulatory Authority of Singapore, you must do so within 30 days.

Upon submission of a printout of a new company registration and proof of paid-up capital (minimum of S$50,000) injected into the new business, the Ministry of Manpower will issue the final approval letter, the so-called In-Principle-Approval (IPA) letter . With the IPA, you have six months to relocate to Singapore to start operating your new company.

To collect your EntrePass you will be required to present

• A copy of the IPA letter
• Passport size photo
• Original passport with the disembarkation card
• Medical exam report* (if required as stated in the In-Principle Approval letter)
• Any other documents that are requested for in the IPA

* 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 for collection 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 the Ministry of Manpower demonstrating that your business venture, within a 1-year period, will meet the employment requirements of a minimum number of Singaporean or local staff, and a Total Business Spending (TBS) as shown in the table below:

EntrePass Renewal Eligibility Summary

* The employees need to possess at least NTC2/NITEC or vocational qualifications obtained after at least two years of full-time studies.

** 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)

The EntrePass renewal form will be sent to the employer about three months before the pass expiry date. The renewal form must be submitted with the following documents at least two months before the pass expires.

Documents Required for Renewal of EntrePass

These documents are required for EntrePass renewal application:

• Latest audited accounts;
• Central Provident Fund statements of applicable employees;
• Highest educational certificates of employees;
• Tenancy agreement; and
• Company registration information Profile from ACRA the Accounting and Corporate Regulatory Authority.

The following optional documents can be submitted in support of the renewal application:

• Corporate bank statements for the past three months;
• Referral letters from customers; and
• Recent invoices issued/contracts awarded.

Renewal Criteria before 28 Sept 2009

EntrePass holders who applied for the EntrePass before 28 September 2009, and have not opted to be assessed under the latest EntrePass renewal criteria, will be assessed on the following criteria for renewals:

A. First Renewal

• The business is in commercial operations and/or company has secured third party funding; and
• The business venture is conducting business based on the original business plan.

B. Subsequent Renewals

• Evidence of turnover/sales activities;
• Employment creation (above and beyond main applicant);
• Corporate taxes paid for at least one of the last three years; and
• The business venture is conducting business based on its original business plan.

All EntrePass holders are encouraged to renew their passes under the latest EntrePass renewal criteria in order to be assessed for upgrade to a higher pass e.g. from Q1 to P2 EntrePass.

Please note that once you have successfully opted to be assessed under the latest EntrePass renewal criteria, you will no longer be eligible for assessment under the old criteria.

EntrePass holders who have not upgraded their passes can only apply for Dependant Passes for their spouses and unmarried or legally adopted children under 21 years of age. EntrePass holders who have their passes upgraded can also apply for Long Term Visit Passes for their common law spouse, unmarried daughters and handicapped children above 21 years of age, step-children and parents/parents-in-law in addition to the Dependant Passes.

Processing Time

It will take at least five weeks to process a renewal application. Processing time might take slightly longer during peak periods or when additional information is required from the various economic agencies. The outcome of the application will be sent to the EntrePass holder.

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 where applicable. 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 EntrePasses have become more stringent. 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 a crucial factor in the application process 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 thoroughly review why your application was rejected so that we can file an appeal. The comprehensive services we provide can help you simplify this lengthy and complex procedure, and consequently help to maximize your chances 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 an IRAS tax assessment can be provided.

Company Registration Requirements

The most common type of company to be incorporated in Singapore is the Private Limited Company. It is a type of a company limited by shares, registered with Accounting & Corporate Regulatory Authority (ACRA) under the Singapore Companies Act. A Singapore Private Limited Company has a separate legal entity from its shareholders, and therefore they are not liable for the debts and losses of the company beyond the amount of their share capital.

Corporate Taxation

New start-up companies pay Zero tax on the first S$100,000 of chargeable income for the first three consecutive years. A further 50% exemption is given on the next S$200,000 of the chargeable income. For more details, refer to Singapore Corporate Tax guide.

Setup Requirements for Singapore Company Registration

• Minimum 1 Shareholder + 1 Resident Director + 1 Company Secretary
• Minimum initial paid-up share capital is S$1
• Singapore Companies must have a Singapore registered office address

What you need to know before Incorporation

Company Name: The company name must be approved by ACRA before the Singapore Company can be incorporated. ACRA will reject a proposed company name for the purpose of incorporation if the name is:

• identical to another existing Company Name
• undesirable
• similar to establish Names or trademarks such as Coca Cola and Temasek

Shareholders: A minimum of at least one corporate or individual shareholder is required. A director and shareholder can be the same or different person(s). 100% local or foreign shareholding is allowed. The Singapore Companies Act allows a minimum of one and a maximum of 50 shareholders for a Singapore Private Limited Company. Details of shareholders will appear on public records.

Resident Directors: A Singapore Private Limited Company must have at least one director who must be an “ordinary” resident in Singapore, ie a Singapore citizen, a Singapore permanent resident or a person who holds an Employment Pass/EntrePass or a Dependants’ Pass with a residential address in Singapore.

There is no limitation on the number of additional local or foreign directors a Singapore Private Limited Company can appoint. The director must be at least 18 years of age, and must not be bankrupt or convicted of any criminal malpractice in the past. Information of the directors will appear on public records. Directors can also be shareholders or vice versa.

Company Secretary: The company secretary must be a natural person who is an “ordinary” resident in Singapore. The Singapore Companies Act requires each company to appoint a company secretary within six month of incorporation.

Share Capital/Paid-up Capital: The minimum paid-up capital for the registration of a Singapore company is S$1 or its equivalent in any other currency. The minimum issued capital is one share of par value. “Bearer” shares or “No par value” shares are not permitted. The Share or paid-up capital can be increased anytime after the incorporation of the company.

Registered Address: Every company 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. The use of residential address is allowed for certain types of business.

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

For foreigners setting up a company – what you need to know

Engage a Professional Firm: Foreign corporations and individuals must engage a professional firm that speciallizes in company incorporation in Singapore to set up a company.

Work Visa for Foreign Individuals: Foreign individuals who wish to relocate to run their new Singapore Company operations have two types of work pass to choose from. For more details, please refer to our Singapore Work Pass Comparison Chart.

Work Visa for Foreign Corporation Management Staff: A Foreign Corporation that plans to relocate their management staff to Singapore to run their newly setup Singapore company setup must apply for Employment Pass. For more details, please refer to our Singapore Employment Pass information.

Foreign Individuals/Corporation Not Relocating to Singapore: Foreign Individuals and corporations that do not intend to relocate to Singapore to operate the company must appoint a Singapore resident director in accordance with the Singapore Companies Act.

Opening of a Corporate Bank Account

Once the company 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 physical presence. Standard Chartered Bank and HSBC are two of the international banks that allow you to open a bank account without you coming to 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 commence operation unless you have the necessary approval or license from the relevant government authorities.

Private schools, video companies, travel agencies, moneylenders, banks, financial advisers, childcare centres and importers, wholesalers and retailers of liquor licenses are some examples of business that need permits to operate. For more details, refer to Singapore Corporate Tax.

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

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

Custom Registration: If your business activities involves import, export and transhipment in and out of Singapore, you will need to register your company with the Singapore Customs and obtain a Central Registration (CR) Number or commonly known as Customs Registration. The CR 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.

Compulsory Registration

All Singapore businesses  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.

Voluntary Registration

You may also choose to register for GST voluntarily. Approval of a voluntary registration is at the discretion of the Comptroller of The Inland Revenue Authority of Singapore (IRAS). Once approved, you must remain registered for at least two years.

Rate of GST

The current GST rate is 7%.

Registration of Singapore Central Provident Fund (CPF): The Central Provident Fund or CPF is a compulsory pension fund scheme in which the employer and employee contribute a certain 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 are not required.

Ongoing Singapore Company Statutory Compliance Considerations

Once your Singapore Company is incorporated, you must comply with the statutory requirements set by ACRA and IRAS. For more details, refer to our Annual Filing Requirements for a Singapore company.

Step 1 – Submit Incorporation order form.

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

cforms contact form by delicious:days

Step 2 – Make Payment and Draft the Business plan

Upon receiving the payment for our services, we will

• Draft a 10-page comprehensive business plan based on the information provided by you including incorporating the requirements stipulated by the Ministry of Manpower (MOM).
• Send the business plan for your review and approval.
• Upon your approval of the business plan, we will submit the application to MOM.

Step 3 – Apply for Entrepreneur pass

We will submit the necessary documents to MOM for the Entrepass application filing.  MOM takes approximately 60 working days to process the application and issue the Approval-In-Principle (AIP) letter.

Upon receiving the Approval-In-Principle notification, we will initiate the incorporation of the company.

Step 4 – Incorporate Company

Upon the signing of the incorporation documents, we will

• Incorporate the Singapore Company and arrange to open the company bank account with your preferred bank to deposit the paid-up Capital (as stipulated in the business plan).
• Upon sighting the deposit slip, we will proceed to file the increase of the paid-up capital in ACRA.

Step 5 – Issuance of Entrepass

Upon incorporation of AIP requirements, the authorities will issue the In-Principle-Approval notification for the pass issuance and collection.

Documents Checklist

EntrePass Application

• EntrePass application form 8
• A well-drafted 10-page business plan (download form)
• A copy of educational certificate
• One passport-size photograph taken within the past thee 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

Your EntrePass business visa application must be sponsored by a Singapore-registered company (we will sponsor your application when you engage our service)

Documents Required for Company Registration

For the purpose of company registration in Singapore, the following details and documents are required:

1. Company Name
2. Brief Description of Business Activities
3. Shareholders Particulars*
4. Directors Particulars*
5. Registered Address

* For non-residents: Copy of passport, overseas residential address proof, and Know-Your-Client (KYC) information such as a bank reference letter.

* For Singapore residents: Copy of Singapore identity card.

* If the shareholder is a corporate entity: Copy of registration documents such as Certificate of Incorporation and Memorandum & Articles of Association.

Dependants Pass ( DP )

If you intend to apply for passes for your dependant(s), we will require the following documents:

• Copy of Passport
• Copy of Marriage Certificate (Spouse)
• Copy of Birth Certificate (Child)
• Copy of highest education certificate (for spouse and/or child)
• If child is legally adopted, copy of the child’s official adoption documents
• Copy of custodial letter of the child (If the child is step-child)

Free Name Check – Singapore Company

A company name check is performed by Rikvin as an initial step to ensure that your desired/proposed company name is available for incorporation in Singapore.

When forming a Singapore company you must choose a unique name.  No two companies registered at Accounting and Corporate Regulatory Authority (ACRA) may have the same name.

If the name is not unique or is already in use, the ACRA will not allow the company name registration to proceed.

Our free name check includes:

• Availability Check

  Our name check of your proposed company name/s will include name availability and conformity.
  This ensures that your proposed name doesn’t violate any basic rules as laid out by the authorities.

• Two name choices

  We recommend that you provide us with two proposed company name choices.
  Where the first choice is not available, a check will be done on the alternate second choice.

• Notification

  Just fill out the form below. We will do a preliminary check to see if your preferred name choice is available.
  Receive an email alert on the outcome of the name check within the same business day.
  All information is kept confidential.

cforms contact form by delicious:days