Can I Relocate to Singapore if I Form a Company and Pay Myself a Salary of $10,000 Per Month?
Relocating to Singapore to run a business and receive a salary seems like a unique arrangement, but is it possible? In theory, it is feasible, but the process can be quite challenging. This article will guide you through the necessary steps and considerations for setting up a company in Singapore and obtaining a work permit.
Entrepreneur Pass - Theoretical Possibilities
One possible pathway to relocation is through the Entrepreneur Pass, although securing this pass is highly competitive. Here are the key points to consider:
Setting Up a Company in Singapore: Forming a company in Singapore is relatively straightforward with a Government agency like the Singapore Multipurpose Licensing (SML) platform. You can incorporate a local company or a foreign company and be part of the management team or entirety of the board.
Employing Yourself: Once your company is on the payroll, you can also pay yourself a salary. This monthly payment can be set at $10,000 or higher, depending on the company's structure and financial health.
Applying for the Entrepreneur Pass: If your salary is substantial and the company's business plan is robust, you might be eligible for the Entrepreneur Pass. However, this pass requires a high-level investment or a proven track record in your chosen business sector.
Practical Challenges and Navigating the Process
While it is possible to establish a company and pay yourself a salary, the steps involved in obtaining a work permit in Singapore are more complex. Here are some challenges and steps to help you navigate the process:
Scoring High on the Pass Navigator: The Ministry of Manpower's Pass Navigator can help determine your eligibility for various passes. However, you will need to demonstrate that your salary and the company's business plan will bring substantial economic value to Singapore.
Meeting Fiscal Responsibility: You must prove that you have the funds to support yourself financially and that your company has the potential to generate sufficient turnover to cover your salary and other operational costs.
Proving Business Viability: Your business plan must be thoroughly researched and clearly articulated. The pass application involves a rigorous assessment of your business idea's feasibility, market potential, and alignment with Singapore's economic objectives.
Legal and Compliance: Ensure that you adhere to all the legal requirements and corporate governance practices. This includes setting up proper business processes, appointing directors, and maintaining comprehensive financial records to support your application.
Explore Other Options
If the Entrepreneur Pass seems too challenging, there are other ways to move to Singapore and work. Here are some alternatives:
Entrepreneur Pass: Suitable for entrepreneurs with strong business ideas and the necessary investment. It requires significant capital or a promising business plan.
S pass: A more common work permit for skilled workers in the mid to low-skill levels. S pass holders cannot be employed in occupations that have a high demand for Singaporean citizens.
Work Permit: A shorter-term work visa for individuals who need to work in Singapore temporarily. It requires sponsorship from a Singapore-based employer.
Global Talent Pass: Designed for foreign talent from around the world, this pass requires a job offer and financial viability within the company.
Conclusion and Next Steps
Relocating to Singapore to run a business and receive a salary is not an easy task, but with the right preparation and qualifications, it can be achieved. The Entrepreneur Pass, while challenging, can be a viable path, but it is crucial to thoroughly research and understand the rigorous requirements and application process.
For detailed guidance and to explore your options, consult the Ministry of Manpower's official website or seek expert legal and immigration advice. By following the correct procedures and meeting the stringent requirements, you might be able to relocate to Singapore and build a successful business there.