Can an EP Holder Start a Business in Singapore?
Yes, an Employment Pass (EP) holder can start a business in Singapore, but there are specific rules and procedures to follow. Singapore is a global hub for entrepreneurship, offering a welcoming ecosystem for startups and investors. However, being on an EP, which is typically issued to foreign professionals, comes with employment and regulatory restrictions that must be carefully managed when starting your own business.
Key Points for EP Holders:
- EP Employment vs. Entrepreneurship: An EP holder’s pass is tied to their current employer, meaning they are legally allowed to work only for that company. Starting your own business does not automatically grant the right to manage it full-time. EP holders can incorporate a company and be its shareholders. However, to be appointed as a company director or engage in its daily operations, they must first obtain approval from MOM or apply for a new pass under that company.
- EntrePass as an Alternative: The EntrePass is designed for entrepreneurs who plan to run an innovative or venture-backed business in Singapore. With the EntrePass, you are allowed to both manage and operate full-time your Singapore company and enjoy the same business-friendly environment.
- Company Incorporation: EP holders may incorporate a company and hold shares. However, they must appoint at least one locally resident director. To become a director themselves, they need MOM’s prior approval.
- Compliance Requirements: Corporate regulations should be observed by your business in Singapore, which means that apart from tax filings, annual returns, and local employment rules, the company must hire employees or may decide to expand operations for which additional passes or approvals might be required.
Starting a business in Singapore as an EP holder is entirely feasible with the right approach. Many successful startups began this way, leveraging Singapore’s stable economy, strategic location, and global connectivity.
For guidance, One IBC Singapore assists EP holders and foreign entrepreneurs with company incorporation, regulatory compliance, and strategic business setup, ensuring your venture is legally sound and positioned for growth in Singapore’s dynamic market.
This approach allows EP holders to benefit from Singapore’s business-friendly environment while adhering to immigration and corporate rules.
