Singapore Company Registration with Entrepreneur Pass
The Singapore Entrepreneur Pass (EntrePass) scheme was launched by the Singapore government for the promotion of entrepreneurship in the country.
Singapore has become a business start-up hub for supporting innovative entrepreneurial ideas and to provide the perfect environment for their success through many government initiatives. The scheme was again revamped in September 2013 for drawing technopreneurs and R&D-based companies including biotech and Cleantech enterprises enabling them to add value, life and innovation to the country.
A business that is engaged in developing and applying innovative ideas and technologies, or help in the promotion of innovative concepts, is highly likely to get approval for their EntrePass.
ENTREPASS AS A PREREQUISITE TO COMPANY INCORPORATION
You can submit an application for EntrePass to the Ministry of Manpower or MOM before the incorporation of your Singapore company. After the approval for the pass has been granted, you are given 30 days to incorporate the proposed company and deposit the proposed paid-up capital in the corporate bank account. In this way, you need not incur incorporation expenses until your EntrePass has been approved.
Requirements for Incorporation of Singapore Company
An Applicant should meet a minimum of one condition in the following list:
- Being funded by an accepted third-party business angel or investor;
- Possess a licensed Intellectual Property or Singapore recognized trademark;
- Entered into a collaboration for research with an authorized research organization like A*STAR or a local tertiary organization;
- Has support from a Government agency in Singapore.
The applicant must also meet the following conditions:
- Incorporate a Private Limited Company. The application for Entrepass must be made within 6 months after the company has been incorporated.
- Must hold a minimum of 30% shareholding in the company.
- Possess the necessary experience and good track record in the creation and management of a successful business.
- Provide documentary proof (in the form of a bank statement of an account of a Singapore company) reflecting at least SGD 50,000 in paid-up capital.
- Provide a business plan of 10 pages describing the business goals. The EntrePass is renewed only when the goals mentioned in the business plan are met.
After approval of EntrePass, applicants are required to provide the following documents within 6 months:
- CPF statements of staff or tenancy contract; and
- Updated ACRA business profile.
10-PAGE BUSINESS PLAN AND CONDITIONS FOR RENEWAL OF ENTREPASS
The 10-page business plan is an essential aspect of the EntrePass application. This plan should elaborate how your enterprise is going to fulfill the staffing requirements of a minimum number of Singapore resident employees, and the Total Business Spending or TBS.
MOM lays down dynamic renewal conditions for ensuring that the achievements of the EntrePass holders correspond with the duration of their stay and functions in Singapore. Future renewal of the pass depends on fulfilling these requirements and achieving the goals mentioned in the business plan. Therefore, it is important to draw up an ideal business plan.
|No. of Years after Award of EntrePass||Creation of Local Jobs||Minimal TBS||Type of Employment Pass issued|
|5 or more||10||SGD 400,000||P1|
The staff should be full-time employees (PR or citizens) and hired under a service contract. They should be receiving a minimum monthly salary of SGD 1,000 on a specific date together with CPF contributions.
TBS = [Total Operating Expenses – (Royalties/Franchise Charges/Know How Charges to Overseas Enterprises + Projects Assigned to Overseas Enterprises + Payment made to Applicant and Family)]
POINTS TO REMEMBER
Once you have decided to incorporate a company and make an EntrePass application, you can take the following steps:
- Create your business plan or hire Richmond for assistance.
- Submit your business plan.
- Once the application for EntrePass is approved by the MOM, move on to the step for incorporation of Singapore company.
Note: It is possible to draft the business plan and submit the application for EntrePass without even your physical presence in the country.