This article will explain the distinctions between the Employment Pass and the Entrepreneur Pass (EntrePass) and which one you should apply for if you are a foreign business professional or entrepreneur wanting to relocate to Singapore.
The similarity between the Employment Pass and the Entrepreneur Pass.
- Both work passes are temporary residency permits that allow the applicant and his or her immediate family to move to Singapore.
- Officials of the Government of Singapore must assess and approve applications for both work pass systems.
- Both work pass programmes are valid for 1-2 years and are renewable if they are renewed in accordance with their specific renewal conditions.
- Both work pass systems allow the candidate and his or her family to seek for permanent residency in Singapore in the future, pending approval by authorities.
- Both work pass schemes are based on the assumption that the pass holder would be paid a salary by the employer. On a yearly basis, the pass holder is required to pay Singapore personal income tax depending on his or her wage.
- Although there is no legal need for paid-up capital, a minimum paid-up capital of SGD 50,000 is expected to be considered in the evaluation of both the EP and EntrePass applications.
What’s the difference between EntrePass and Employment Pass?
If the applicant owns more than 30% of the company, they will almost certainly need to apply via the EntrePass programme. However, the Employment Pass programme is still open for these applicants.
If you want to apply for a work permit before the business is incorporated
- You’d only be able to apply for an EntrePass if you wanted to (because an Employment Pass can only be applied after the company is set up). If your EntrePass application is granted, you will have 30 days to incorporate your business.
If your business is incorporated but is less than 6 months old
- You can apply for either an EntrePass or an Employment Pass if you fulfil the required shareholding and other criteria.
If your business is incorporated and is more than 6 months old
- Only the Employment Pass can be applied for. When filing for an EP for a company that is more than 6 months old, the authorities may ask you to show positive developments in the business, such as contracts, revenue, business spending, and so on, to show that you are operating a sustainable business.
Requirements for a Business Idea and a Business Plan
The company concept must be entrepreneurial and creative in character when applying for the EntrePass. As part of the application, a business plan of around 10 pages will be required. It must have the potential for strong development and to result in more local jobs being hired. Routine business concepts, such as a travel agency or a recruiting agency, are not eligible for the EntrePass programme.
A business plan is not required for most Employment Pass applications, although authorities may request it on a case-by-case basis.
Requirements for Educational Qualifications
Because the company concept and the applicant’s relevant history both hold more weight in EntrePass applications, educational degrees are less significant. An Employment Pass, on the other hand, requires a tertiary degree from an accredited university as well as relevant professional experience.
Hiring Requirement for Local Employees
The EntrePass contains recruiting requirements for local employees that will be taken into account when renewing the card. At the time of renewal, the firm must have employed a set minimum number of full-time local employees (beginning with two local employees) over the previous 12 months. One of the most important prerequisites for EntrePass renewal is the hiring of local employees.
Requirement for Business Spending
The minimum Total Business Spending criterion for EntrePass renewal ranges from S$100,000 to S$400,000 during the previous 12 months.
It’s crucial to remember that the type of pass that’s best suited for you is determined by a number of circumstances; if you’re planning to migrate to Singapore and need help, please contact us.