Among global destinations, Singapore stands out for its strategic location and business-friendly policies. Yet, for foreign entrepreneurs—especially those with limited formal work experience—the process of securing an Employment Pass (EP) can be daunting. This is the story of Ms. Thao, a driven entrepreneur from Vietnam, and how LNT Consulting supported her in setting up her Singapore company and successfully obtaining an EP to lead it as Director.
Ms. Thao approached us with a clear goal: to set up a Singapore Private Limited company for her trading business and secure an Employment Pass (EP) to serve as its Director and Shareholder. She intended to use the Singapore entity as a hub for her international business expansion. While her ambition was clear, her background presented a unique set of challenges.
Understanding the Challenges for Employment Pass Application
The Ministry of Manpower (MOM) in Singapore assesses EP applications based on a combination of salary, qualifications, and relevant work experience. Ms. Thao’s profile had a few complexities:
- A Non-Traditional Career Path: After graduating with a Bachelor of Marketing, Ms. Thao focused on her family life and supported her husband’s trading business. This resulted in a career gap and a lack of formal, documented professional experience on her CV.
- Mismatched Qualifications: Her degree in marketing was not directly aligned with the declared business activities of her new company.
- The Need for Strong Justification: Due to the points above, her application required a carefully crafted narrative to demonstrate her capability and value to the Singapore-based company.
These factors made it essential to carefully strategize her application to meet the Ministry of Manpower’s (MOM) strict EP requirements.
Our Strategic Approach: Employment Pass Solution
Step 1: Consultation
First of all, we conducted a thorough consultation to understand:
- The client’s goal and her background information
- Verify her eligibility for an EP as a Director and Shareholder of her Singapore Private Limited Company.
- Verify the accreditation of her university with MOM’s list of recognized institutions.
We then laid out a comprehensive plan covering company formation, bank account opening, and the EP application itself. Once she agreed, we moved forward.
Step 2: Company Formation
We do support her to form a new Private Limited Company in Singapore in 3 days only including:
- Check company name & gather KYC documents.
- Confirm the company structure (business nature, SSIC Codes, directors, shareholders,…etc).
- Support for due diligence process.
- Provide the official company documents.
Then, support for bank account opening within 7-10 days to ensure operational readiness.
Step 3: Drafting EP Application
This was the most critical phase. We focused on turning her perceived weaknesses into strengths.
- Tailoring the Narrative: We worked closely with Ms. Thao to create her CV. Instead of focusing on the career gap, we highlighted the valuable entrepreneurial skills she gained while supporting her husband’s business—skills in management, logistics, and business development that were directly relevant to her new role as a company director.
- Documents preparation: Prepare all required personal and corporate documents, including passport, bank statements, degree transcripts (translated), and company profiles.
- Justifying the Salary: The minimum qualifying salary for an EP is SGD 5,600 (as of the time of application). However, simply meeting the minimum is not enough. To reflect her senior role as a director and the scope of her responsibilities, we proposed a salary of SGD 10,500 per month. This higher salary was justified by a robust business plan and demonstrated her significant value to the company’s future growth.
Step 4: Submission and Approval
With all documents meticulously prepared and checked, we submitted the application through the MOM portal. Thanks to the strong justification and thorough preparation, we received the In-Principle Approval (IPA) in just four weeks.
The IPA gave Ms. Thao six months to travel to Singapore to complete the final formalities.
Step 5: EP Issuance and Final Steps in Singapore
We guided Ms. Thao through the final stage of the process:
- Travel to Singapore: She arrived to complete the necessary procedures.
- Biometrics & Registration: We assisted her in scheduling an appointment at the Employment Pass Services Centre (EPSC) to register her fingerprints and photo.
- Card Issuance: Her official EP card was issued within five working days.
- Change of Director: With the EP approved, we proceeded with the change of local director, making her the sole resident director of her company, fully compliant with Singaporean law.
Key Takeaways for Entrepreneurs to apply for Employment Pass
Ms. Thao’s journey offers two powerful lessons for any entrepreneur looking to obtain an EP in Singapore:
- Salary Justification Matters: Don’t just aim for the minimum salary. Your proposed salary should be a strategic figure that reflects your experience, the seniority of your role (e.g., Director), and the business’s scope.
- CV Tailoring Can Overcome Career Gaps: A non-traditional career path or a degree in an unrelated field is not a deal-breaker. The key is to build a compelling profile that highlights your transferable and entrepreneurial skills.
- A Note on Personal Income Tax in Singapore: As an EP holder residing and working in Singapore, you are considered a tax resident. This means you are subject to Singapore’s progressive personal income tax rates. Visit this link and take a look at the resident tax rates: https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/tax-residency-and-tax-rates/individual-income-tax-rates
Ms. Thao’s success story showcases the fact that with the right strategy, careful preparation and expert guidance, even complex EP applications can succeed. She is now successfully running her business from Singapore, turning her international ambition into a reality. If you’re an entrepreneur looking to relocate or expand your business to Singapore, we’re here to help. Contact us today to make your Singapore business journey a success.
