Navigating the Visa Jungle for Foreign Entrepreneurs in Singapore

Singapore is pretty well known by now as an ideal hub to start your own company, ideally in sectors which are of high strategic importance to the government policies, such as new media (web start-ups), biotechnology and the gaming sector. With several government funding schemes in place, an ideal business environment and strong ecosystem, many foreign entrepreneurs aim to set up shop in the city-state. But the first hurdle to master on the way to your successful business launch in Singapore is to identify which type of visa suits your requirements best.

Types of Visas

Most entrepreneurs aim for the EntrePass, which is a type of visa tailored to meet the demands of qualified foreign individuals who wish to setup their own company. Other attractive options are the Employment Pass and Personalised Employment Pass visas.

The Entrepass

The Entrepass is an option for people who want to setup a totally new company in Singapore, or have setup a company already not longer than 6 months from the date of application. Applicants do not necessarily need a University degree in order to qualify, given that their work experience is extensive enough and/or their business idea unique.

The application processing for the Entrepass takes around 5 weeks and requires a business plan to be compiled in addition to the visa form. Usually the pass is initially granted for 12 months and can be renewed every year, subject to the condition that the business remains in operation and develops somewhat along the business plan forecasts which were submitted.

In the ideal scenario, the entrepreneur is able to employ Singaporean citizens or PRs which will maximise the chances for renewal.

Policy Update: Minimum Paid-Up Capital of $50k for Entrepass

MOM just issued a policy update for the Entrepass which points to a more selective procedure, effective as of 28th September 2009. The paid-up capital must be at least SGD 50,000 and the shareholding of the entrepreneur at least 30%. The company must also be incorporated as a Private Limited company.

This may seem like a difficult criterion to pass, so what might be a possible way to go about this?

Employment Pass

Another route is to incorporate a Private Limited company initially, with foreign shareholding. After that a Singaporean nominee director is appointed. After a few months it is possible in many cases to apply for an Employment Pass for the person who is supposed to come to Singapore. At the same time the nominee director service can be terminated. The Employment Pass eligibility criteria imply that person has a track record of work experience and at least a bachelor’s degree.

Personalised Employment Pass (PEP)

The Personalised Employment Pass (PEP) is an option for professionals from overseas whose last drawn monthly salary overseas was a minimum of 7,000 SGD. The PEP is issued for a 5 year term and enables the candidate to seek employment in Singapore without directly being tied to a specific employer.

This article was contributed by VisaExpress Singapore, a local consultancy which is specialized in helping foreign entrepreneurs and expatriates in all matters related to Singapore visas.

Image courtesy of rappensuncle.

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