Navigating the Path: Employment Pass Holders and Company Incorporation in Singapore

Incorporating a company in Singapore as an Employment Pass (EP) holder can present unique challenges, particularly when it comes to continuing your employment status post-incorporation. This article aims to provide a comprehensive guide on the conditions, requirements, and steps to consider when intending to maintain work in Singapore after establishing a company. Understanding the intricacies of the Employment Pass system is crucial for any EP holder considering such a move.

The Role in the Company

The most fundamental requirement when incorporating a company as an EP holder is the role you will play within the new entity. According to the Ministry of Manpower (MOM) in Singapore, the EP holder must be employed in a managerial or specialized role. The job position must adhere to specific criteria set by the MOM to qualify for continuing work under an EP.

Applying for a New Employment Pass for the Company

To ensure continuity in employment, it is essential that the company itself applies for a new EP for the holder. This process involves transitioning from an employee to a director or key personnel of the company. This step is critical to maintaining the legal right to work in Singapore under the EP.

Meeting the Salary Requirements

A key aspect of the Employment Pass criteria is the minimum salary requirement, which may vary based on the individual's qualifications and experience. MOM sets these standards to ensure that only relatively highly-paid roles are eligible for EPs. To continue working alongside the new company, you must meet these financial thresholds.

The Company’s Viability

For your Employment Pass to remain valid, the company must demonstrate its viability and readiness to support the employment of the EP holder. This involves providing detailed business plans and financial projections. Ensuring that the company possesses a solid foundation and sustainable growth potential will help in maintaining your work eligibility in Singapore.

Compliance with Regulations

MOM sets forth various regulations and requirements that both the EP holder and the company must comply with. These include adherence to labor laws, regulations on company formations, and ensuring the company’s compliance with tax regulations. Full compliance with these regulations is essential to maintaining the integrity of your EP.

Summary and Advice

In summary, an Employment Pass holder can continue working in Singapore after incorporating a company provided certain criteria are met and the appropriate EP is applied for. It is highly recommended to consult directly with the Ministry of Manpower (MOM) or a legal expert for the most accurate and personalized guidance.

The ultimate decision on whether to use your EP with the current employer or incorporate a new company should be made carefully. Your EP is linked to the company providing the employment, so if you resign to start a new company, you will lose your EP attached to the previous employer.

It is also important to note that incorporating a company with an EP applied under a different company may result in rejection or procedural difficulties. Maintaining full compliance with all regulations and ensuring a financially robust company is key for a successful transition.

Should you have any further queries or need personalized advice, it would be wise to seek professional assistance.