Your guide for launching a business in Singapore

Singapore EntrePass

What is the EntrePass?

Overview

Are you a foreign national who would like to start a business in Singapore and relocate to Singapore to run your business?

If the answer to the above question is YES then EntrePass may be for you. EntrePass scheme is meant for entrepreneurs that lack tertiary education. For entrepreneurs with good educational qualifications, Employment Pass is normally the better choice. To read more about the difference between the two, see EntrePass vs Employment Pass.

Application for EntrePass is normally made prior to incorporating a Singapore company. If the EntrePass is approved, you must incorporate your company within 30-days of in-principle-approval letter. If however you EntrePass is rejected, you have no obligation to setup a Singapore company.

EntrePass (nicknamed from Entrepreneur Pass) allows global value-creating entrepreneurs and innovators to stay and run their business ventures from Singapore. The EntrePass, is a type of Singapore Employment Pass that is designed to facilitate the entry and stay of foreign entrepreneurs who are ready to incorporate and start a business in Singapore. EntrePass was introduced in 2004 and is aimed at attracting foreign entrepreneurs into the country. With its desire to become a regional business hub, Singapore plans to attract a good number of entrepreneur minds into the country from overseas.

The processing of EntrePass applications can take anywhere between 4-8 weeks. If you don’t want to wait that long and need to register your company urgently, you can register your company first and then apply for EntrePass. However, you must think through what you will do with the company if the EntrePass application is not successful.

NOTE: You don’t have to apply for either entrepass or employment pass in order to register a Singapore company. EntrePass or employment pass is required only if you want to relocate to Singapore in order to run your company operations.

You don’t need to have a Ph.D. from top-notch school or have millions in the bank to get started. What you need is an entrepreneurial background, a good business plan (along with a good business idea) and a minimum of S$50,000 investment to cover your startup expenses and support yourself in the early stages.

EntrePass holders are eligible to apply for Singapore Permanent Residence status in due course.

EntrePass – Key Facts

A minimum of S$50,000 investment is required.
Application for EntrePass is normally made prior to incorporating your business in Singapore.
Along with EntrePass application, you will need to submit a approximately 10-page business plan. The details of preparing a good business plan are described towards the end of this page.
Once submitted, the application processing time is about 4-6 weeks.
If your application is successful, you will be issued an EntrePass that is initially valid for 1-2 years.
You do not need to incorporate your business in Singapore until the successful outcome of your EntrePass application.
Your EntrePass allows you to bring your immediate family members (spouse and unmarried children under 21) to Singapore to live with you. You will need to apply for their Dependent Pass if they are to relocate with you.
The EntrePass is renewable for as long as the business remains viable. Your business must employee local staff over time. You are also eligible to apply for a permanent residence in Singapore in due course.

EntrePass – Required Documents

Business plan
Completed EntrePass application
Copies of educational certificates
Copies of past employment testimonials, if any
A recent passport-sized photograph
A copy of the passport
A copy of the CV/Resume for the applicant

Business Plan for Entrepreneur Pass

Preparing a business plan as part of applying for Singapore EntrePass is not much different than preparing a business plan for your own planning purposes. One important fact about EntrePass business plan is that it’s expected to be relatively concise i.e. no more than 10 pages long.

As per official guidelines, Business Plan for EntrePass shall contain details of the following:

Business idea – a short, self-explanatory summary covering the proposed business concept;
Product / service – the total product and service offering;
Market analysis – the target market in terms of key customers, competition and market growth potential;
Market plan – how the product / service will be marketed or distributed;
Operation plan – resources needed to run the business;
Financial projections – projected sales and net profit before tax for three years and breakeven point;
Management team – key drivers of the business; and
Supporting documents – e.g. licensing agreements, product certifications, endorsements, etc

Although it requires some effort and research, it’s not as difficult as you might think. Writing a entrepass business plan is just capturing your longer-term goals, objectives, estimates, and forecasts on paper. Keep in mind that it’s your best guess given your current analysis and state of information before you start your business. Forecasts and objectives change as you acquire new experiences and data points.

A well thought out business plan will not only improve your chances of getting a Singapore EntrePass, but it will also help you clarify your mind and better prepare for your entrepreneurship journey. The well-known fleas-in-the-box analogy applies to your plan as well; if you put a lid on the box, the fleas will learn to jump to that height only, but if there is no lid, they jump as high as they are capable of doing. Your plan should set that lid higher. At the same time you must be confident that figures in business plan are achievable. You must strike a good balance between optimism and realism.

Make sure EntrePass business plan is impressive in presentation. Your plan must get across to readers what is interesting about your business. Stress your marketing and sales strategy and include a break-even analysis. Be sure to include tax payments, payments to local accountants and other service providers to demonstrate your contributions to local economy.

Common Questions

What is EntrePass?

EntrePass is a special type of employment pass meant for the principals of the company who would like to register a Singapore company and need a resident visa to stay in Singapore and work on their business. Key facts include:

EntrePass is subject to approval by authorities
EntrePass is initially issued for 1-2 years at a time
EntrePass is renewable as long as the business remains viable. Your business must employee local staff over time.
EntrePass allows the applicant to bring his family to Singapore

Do I need to apply for EntrePass for my overseas employees that I want to bring to Singapore?

No, for your employees you will normally apply for employment pass.

Do I need to first incorporate the company before I apply for EntrePass?

No. EntrePass is normally meant for cases when you want to get a 100% assurance that you will be able to relocate to Singapore if you incorporate a business in Singapore. As such, application for EntrePass is normally made prior to incorporating the company.

What if I want to incorporate the company first?

No problem. However, keep in mind that you will need someone to act as the local director for your company until your EntrePass is approved. Note that if you incorporate your company first, you can either apply for EntrePass or Employment Pass afterwards. Applying for Employment Pass is a little simpler as it doesn’t require you to submit a business plan, however it requires that you have tertiary level education and a good amount of professional experience.

If you incorporate your company first before getting your EntrePass/Employment Pass approved, you must also be aware that if for some reason you Pass is rejected, you will need to think through about meeting the local director requirement on a longer-term basis.

How much money do I need to invest in my company to apply for entrepass?

As per the revised entrepass rules effective September 28, 2009, the minimum investment amount required is S$50,000. Above and beyond the minimum amount, the amount of investment required for your business will depend on the nature of your business. Certain types of businesses are more capital intensive that others. Normally you will be expected to cover startup expenses for your business and have enough cash to cover business expenses for the initial 3-6 months including your salary.

Do I need to submit a business plan along with my EntrePass application?

Yes, you must submit a business plan of no more than 10-pages in a prescribed format by authorities.

Can I get help with preparing the business plan?

Yes, many service providers offer this service. They will ask you some basic questions about your proposed Singapore business (nature of products/services, expected amount of initial investment, etc.). If you already have some draft business plan, they will take it as the starting point.

Can anyone guarantee that my EntrePass will be approved? What are my chances of getting the EntrePass approved?

No one can provide such guarantee as the decision lies with relevant government authorities. The factors that play an important role in the success or failure of the EntrePass application include entrepreneurial background of the applicant, nature of business idea, quality of the business plan, and amount of investment.