Incorporating a Company in Singapore and Obtaining an Employment Pass (EP): Your Step-by-Step Guide
Introduction
Singapore is not just a thriving global business hub; it’s also one of the safest and most secure countries in the world. With its pro-business environment, efficient legal system, and excellent infrastructure, Singapore attracts professionals and entrepreneurs from around the globe. For those looking to build their dreams here, incorporating a company and obtaining an Employment Pass (EP) is an excellent first step.
In addition to its vibrant economy, Singapore offers unparalleled safety for residents and families. If you're considering making this city-state your next home, read more about its safety and security here: Why Singapore Should Be Your Next Safe and Secure Home.
Let’s dive into how you can incorporate a company in Singapore, secure an EP, and even bring your family along.
1. Incorporating a Company in Singapore
Step 1: Choosing Your Business Structure
Your journey begins with choosing the right business structure. For most entrepreneurs, a Private Limited Company (Pte Ltd) is the ideal choice. This structure not only offers limited liability protection but also positions your business as a credible entity to partners and clients. With low corporate tax rates and access to various government grants, a local incorporated company is the perfect foundation for growth.
Imagine laying the cornerstone of your dream business—this first step is about ensuring your foundation is rock-solid.
Step 2: Selecting a Primary Industry and Activity
Every company in Singapore must define its primary business activities, which are categorized under the Singapore Standard Industrial Classification (SSIC) codes. To search for the relevant codes users can go to here or here. This step involves carefully choosing the industry and activity that best represent your business operations.
For example:
A tech startup might classify itself under SSIC 62011 - Software Development.
A retail store might fall under SSIC 47110 - General Retail Sales.
Choosing the right SSIC code is crucial because it affects licensing requirements and compliance obligations. If you’re unsure, consulting a corporate service provider can save you time and effort.
Step 3: Name Approval
The next step is to select a name for your business. Singapore’s regulator, ACRA (Accounting and Corporate Regulatory Authority), requires that your company name be unique and free from prohibited or offensive terms. Once you’ve chosen a name, you can reserve it on the BizFile+ portal or you can get a Corporate Secretary firm to help you. This process is often instantaneous, but in some cases, it may take up to a day for approval especially if the name sounds similar to other company names already in the system.
Step 4: Meeting Statutory Requirements
To register your company, Singapore’s laws mandate that you fulfil several statutory requirements:
Shareholder: At least one shareholder is required. This can be an individual or a corporate entity.
Local Resident Director: You’ll need at least one director who is a Singaporean citizen, permanent resident (PR), or Employment Pass (EP) holder.
Company Secretary: Appoint a qualified company secretary within six months of incorporation.
Paid-Up Capital: A minimum of SGD 1 is required. But we recommend SGD 50,000 at least for applicants intending to get an EP.
Registered Address: A physical office address in Singapore (no P.O. Boxes) must be provided.
For foreign entrepreneurs without a local connection, appointing a Nominee Director is a temporary solution. These services are often provided by corporate consultants to meet statutory obligations while your EP application is pending.
Step 5: Preparing the Necessary Documents
Incorporating a company involves gathering essential documents:
For shareholders and directors:
Passport copies. Certified true copies and notarised if the applicant is based overseas and wants to submit online.
Proof of residential address. Certified true copies and notarised if the applicant is based overseas and wants to submit online.
For the company:
Constitution (formerly Memorandum and Articles of Association).
Certificate of Incorporation (if corporate shareholders are involved).
Having all your documents ready ensures a smooth incorporation process with faster approval times.
Step 6: Registering the Company
Once everything is in place, you can file your incorporation request via ACRA’s BizFile+ portal. If you find the process daunting, corporate service providers can guide you through it. Typically, incorporation is completed within 1–2 days, giving you a fast-track start to your business in Singapore.
2. Applying for an Employment Pass (EP)
Understanding the EP
The Employment Pass (EP) allows foreign professionals, managers, and directors to work in Singapore. As the shareholder and director of your newly incorporated company, you’re eligible to apply for an EP, provided you meet the salary threshold. As of the time of writing this SGD 5,000 per month (higher for older candidates) but this will increase to SGD5,600 from 1 January 2025. Candidates should also have relevant experience and a clearly defined job role that aligns with the company’s business activities. Applicants should ideally also have no prior legal or immigration violations. Unless exempted, candidates must score at least 40 points from the Complementarity Assessment Framework (COMPASS). Candidates can gain points from either personal individual attributes such as education and salary or from the company attributes such as company diversity and/or support for local employment.
Source: Singapore Ministry of Manpower
Key Documents for EP Application
Passport copy. Certified true copies and notarised if the applicant is based overseas and wants to submit online.
Verified educational certificates. Candidates need to ensure their qualifications are authentic and were awarded by accredited institutions. Acceptable forms of verification include:
Background screening companies,
Government/awarding institution's verification portal,
The OpenCerts portal: https://www.opencerts.io/.
A detailed resume highlighting relevant experience.
Incorporation documents, including the Certificate of Incorporation and Business Profile.
Steps and Timelines
Data Preparation:
Verification of educational qualifications: 1–2 weeks.
Document compilation: 1–2 days.
Submission: File your application through the Ministry of Manpower (MOM) portal.
Processing Time: 1–3 weeks for approval.
Once approved, you’ll receive an In-Principle Approval (IPA) letter, valid for six months.
Finalizing Your EP
After receiving IPA:
Enter Singapore (if applicable) using the IPA letter.
Complete a medical check-up, if required.
Submit medical results to MOM.
Register biometrics for the EP card, which is typically delivered within 4 working days.
3. Family Visa Options
Dependent Pass (DP)
As of the time of writing, if you earn SGD 6,000 or more, your spouse and unmarried children under 21 years old can apply for a Dependent Pass. Required documents include marriage and birth certificates, along with passport copies. The MOM, in contrast to the ICA, will accept spouses from a common-law marriage.
Long-Term Visit Pass (LTVP)
For parents, or common-law spouses, earning SGD 12,000 or more qualifies you to apply for an LTVP. Supporting documents such as affidavits and financial proof are essential.
4. Transition from Nominee Director to Local Director
Once your EP is approved, you can replace the nominee director with yourself. This transition involves filing Form 45 with ACRA and can be handled seamlessly with professional help.
5. Path to Permanent Residency (PR)
EP holders can apply for PR after 1–2 years of stay. As a PR, you gain access to public healthcare, housing options, and a pathway to citizenship. Applying for PR solidifies your long-term plans in Singapore.
Conclusion
Incorporating a company and obtaining an EP in Singapore is not just a legal process—it’s the start of a new chapter. Whether you’re building a global business or planning to bring your family to a secure, vibrant environment, Singapore offers a wealth of opportunities. By following these steps and seeking professional guidance when needed, you’ll be well on your way to success.
Your journey to success begins here
Need Expert Guidance? Contact E&H Immigration Consultancy
Navigating the process of company incorporation, Employment Pass (EP) applications, and permanent residency (PR) in Singapore can be complex. That’s where E&H Immigration Consultancy comes in. With over a decade of experience in Singapore’s immigration and business landscape, we provide tailored solutions to meet your needs.
Why Choose Us?
Expertise in Singapore immigration laws and regulations.
Proven track record in securing EPs, DPs, LTVPs, and PR approvals.
End-to-end support, from company incorporation to final visa approvals.
Personalized consultation to fit your unique business and immigration goals.
Our Services
Incorporate your company quickly and seamlessly.
Optimize your EP application with expert guidance and strong documentation.
Plan your path to permanent residency and citizenship.
Take the first step toward building your future in Singapore. Visit E&H Immigration Consultancy to schedule a consultation or speak with one of our experienced advisors today. Let us help you make your Singapore dream a reality!
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