Singapore is a favorite financial hub in Asia Pacific. Many businessmen are drawn to this small island mainly due to its attractive political and economic landscapes. Foreign investors have two options in investing in Singapore. One of them is thr ough the use of an Entrepreneur Pass or EntrePass.
What is an Entrepreneur Pass
An Entrepreneur pass or simply, an EntrePass, is designed to allow businessmen to stay in Singapore and actively engage in their businesses. Once it is issued by the Ministry of Manpower, it is deemed valid for one whole year and renewable as long as the business in Singapore is viable. The EntrePass holders are also allowed to have their qualified immediate family members to live in Singapore with them. The EntrePass comes in three types: P1, P2, and Q1.
Types of Entrepreneur Pass
- The EntrePass issued by the Ministry of Manpower comes in three categories based on the Total Business Spending of a proposed business:P1 Pass – This pass requires a Total Business Spending of S$300,000
- P2 Pass – This pass requires a Total Business Spending of S$150,000
- Q1 Pass – This pass requires a Total Business Spending of S$100,000
The Total Business Spending is computed as follow:
Total Business Spending = (Total Operating Expenses [Franchise fees/Royalties/ Know how fees to overseas companies Work Subcontracted to overseas companies Remuneration to applicant & immediate family])
EntrePass Eligibility Requirements
The primary requirement for an EntrePass is the feasibility of a business proposal, which must contain the following information:
- Objective of the business or its nature
- Products and or services it offers
- Marketing strategies
- Amount of investment intended
- Staffing plan
- Projected sales turnover
- Development plans milestones
Other conditions set by the government of Singapore include:
- Paid-up capital of a minimum of S$50,000, together with a bank statement issued by a Singapore-based bank verifying the said capital amount/li>
- The foreign investor must have a relevant record of successful business entrepreneurship/li>
- The foreign investor should hold and own at least 30 per cent of the shareholding of the proposed business or company, which must be registered as a private limited company
From the point of an EntrePass application, the company or business should not be registered with ACRA for more than six months.
Requirements of a Business Plan
The proposed business plan must be comprehensive, sound and feasible. The essential information required by the government of Singapore must be detailed in 10 pages. The business plan should also be entrepreneurial in nature. The marketing strategies are very important for the Ministry of Manpower to assess that within a period of one year, the business is capable of meeting the employment requirements and total business spending.
Employment Requirements
The employment requirement for an EntrePass refers to employment of locals—the Singaporeans.
- For a P1 EntrePass, the business should be able to employ eight locals and with S$300,000 Total Business Spending (TBS)
- For P2 EntrePass, the business must be able to employ four locals and with a TBS of S$150,000
- And for Q1 EntrePass, the business shall employ two locals and with a TBS of S$100,000
