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

* 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 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.

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Singapore Company Registration Requirements

The most common type of company to be incorporated in Singapore is the Private Limited Company. It is a type of private company limited by shares and 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.

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

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 Company must have a Singapore registered office address

Note: For applicant who are applying for Entrepass, a minimum of S$50,000 paid up is required.

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:

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

Shareholders: A minimum of at least one corporate or individual shareholding is required. A director and shareholder can be the same or different person. 100% local or foreign shareholding is allowed. 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: Singapore Private Limited Company must have at least one director who must be an "ordinarily" resident in Singapore, which means a Singapore citizen, a Singapore permanent resident or a person who holds an Employment Pass/Entrepass or a Dependants' Pass.

There is no limit 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 for 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 "ordinarily" resident in Singapore. Singapore Companies Act requires companies to each appoint a company secretary within six month of incorporation.

Share Capital/Paid-up Capital: The minimum paid-up capital for registration of a Singapore company is S$1 or its equivalent in any currencies. 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 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. Use of residential address is allowed for certain types of business.

Memorandum and Articles of Association: 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 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 Work Pass Comparison Chart.

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

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 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 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 centres and importers, wholesales 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 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 transhipment in and out of Singapore, you will need to register your company 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 Company is incorporated, you must comply with the statutory requirements set by Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS). For more details, refer to Annual Filing Requirements for a Singapore company.

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
• Any 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 detail and documents is 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 passes for your dependant, 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 )