1. Workshop: Start Your Own Business – Your Options
March 15, 2017
Workshop:
Start Your Own Business – Your Options
Speaker : Asha Dixit, FCCA
Money Matters For Expats Pte Ltd
583 Orchard Road
#06-01 Forum
Singapore
Tel:
Money Matters for Expats Pte Ltd

2. Whenever I have given this talk earlier, I always started by mentioning that Singapore is one of the easiest places in the world to start a business.
However, as of 2016, the scenario has changed dramatically. We had seen several minor changes for the past several years, but as of late last year, the Government position is quite clear and I am not optimistic that we will see any let-up on this stricter regime.
While foreigners can still register businesses with ACRA in Singapore, it is the Ministry of Manpower that has become stricter.

3. Under the changed scenario, if, as a foreigner, you simply want to work, then the easiest solution as a Dependent Pass holder is to look for a job.
There is a shortage of qualified manpower in Singapore and most employers are looking for employees with skills and experience. If you hold a Dependent Pass, the Ministry of Manpower will approve the Letter of Application filed by the employer without any delay.
You should only consider setting up your own business, if you have a serious business plan, have some prior experience and are willing to make commitments both in terms of time and finances.

4. Before you register the business, I would recommend that you do some groundwork -
Do some financial projections
Do a market survey, talk to friends, talk to people who have set up businesses in Singapore
Have you considered that it is extremely difficult to find manpower?
Think about your exit strategy

5. If after all your research, you still want to register a business, you need to then consider the kind of entity that you will need.
Does your business entail risk?
Are you going to need funding?
What kind of profits will the business generate?
Depending on the answer we will help you decide, if you need a Sole Proprietorship, Partnership or a company

6. Once the business is registered, you must apply for the requisite pass to MOM
As a Dependent Pass holder, you cannot legally work, until you get approval from MOM.
As of late last year, It is now impossible to get Letters of Consent for self-employed foreigners. MOM has stated categorically that it will not approve any LOC applications for self-employed foreigners and so you have very few options, if you decide to register a SP or a Partnership.

7. One way is to register the SP with a Singaporean or Singaporean PR as the owner. It is hard to find someone who will agree to do this, as a SP owner has no liability protection.
It may be easier to find a partner, who is Singaporean or Singaporean PR, as the risk is shared.
In our experience, if the LOC application is filed by a local, MOM may approve it.
If you cannot find a local to be the SP owner or a partner, your only option is to register a company.
However, this is an expensive option.

8. Kinds of passes If you bring along your parents on LTVP:
Employment pass
If you bring along your parents on LTVP:
Minimum salary S$ 10,000 pm
If you bring along dependents (DPs):
Minimum salary S$ 5,000 pm
If you are alone:
Minimum salary S$ 3,600 pm (in our experienced, MOM rarely approves an EP at this salary range)
S Pass
S : Minimum salary S$ 2,200 pm
+Levy+Insurance
Employer MUST have quota
PEP
If current EP holders:
Minimum salary S$ 12,000 pm
If overseas foreign professionals:
Minimum salary S$ 18,000 pm
LOC
Only available for Dependent Pass holders
No minimum salary requirements

9. Once your pass is approved, you must remember to renew it before the expiry date
As an employee or business owner, you must also file your personal tax return by 15 April each year

10. Thank you!