Singapore Company Registration Specialists

YOUR GUIDE TO DOING BUSINESS TO SINGAPORE

Singapore to Welcome
Foreign Entrepreneurs
Through Entrepass
Connect with us for the latest business updates: Facebook Twitter LinkedIn
 Page 1

Singapore has managed to achieve an iconic economic stature among its regional counterparts
by always choosing to play its game differently. Yet again it has played a smart move, when
globally the heavyweight economies are steering towards protectionism, Singapore is easing the
entry of foreign entrepreneurs and enhancing funding support for start-ups. Singapore, being a
resource-scarce nation, has promptly realized the significance of nurturing an innovation-driven
economy to achieve higher value growth amidst intensifying competition. Therefore, it is not
enough to nurture local start-ups and entrepreneurs but in order to achieve and sustain a higher-
value innovation economy, the government needs to remain open to foreign entrepreneurs while
promoting local start-ups. This brings us to the introduction of the Entrepass

The government clarified its policy stance when Mr. Koh Poh Koon, Minister of State for Trade
and Industry, on 3 March 2017 during his ministry’s Committee of Supply debate, announced a
slew of changes to the schemes relating to foreign entrepreneurs and startups. The changes
announced to the Entrepass scheme sector are the key points.

Changes to the Entrepreneurship Pass

Launched in 2003, the Entrepass is a special

work pass targeted at foreign entrepreneurial
talent. The pass weighs the applicant’s track
record and the viability of the proposed business.
More importantly, the authorities evaluate the
potential of the business to positively contribute
to Singapore’s economy. The key merit of
Entrepass is that the educational and professional
experience of the applicant takes a backseat,
this benefited several entrepreneurs who have
emerged successfully in business despite the lack of educational qualification and also
innovative startups whose founders did not have formal educational background.

Subsequent to the economic restructuring efforts of the government, the criteria for
Entrepass approval were tightened in September 2013. Since then, the number of foreign
entrepreneurs taking the Entrepass route to set up business in Singapore has taken a
hit. Although they continue to set up private limited companies and obtain employment
pass to stay in Singapore to manage the business, some entrepreneurs are disadvantaged
because they lack the educational qualification and professional experience that are critical
to qualify for an Employment pass.

Taking cognizance of the situation, the government has announced some changes to the
Entrepass criteria. The changes will relatively ease the entry of foreign entrepreneurs
seeking to set up in Singapore.

Copyright © 2019 Rikvin Pte. Ltd. | All Right Reserved Last updated Sep 2019 | 1
(https://www.rikvin.com/services/singapore-company-registration/company-incorporation-with-entrepass/)
 Page 2

Removal of minimum paid-up capital requirement: The applicants are required to

incorporate a private limited company with a minimum paid-up capital of S$50,000. The
minister has announced that the minimum paid-up capital criteria will be removed.

The Validity of renewal extended: The initial validity of the entrepass is one year. The
entrepass holders are required to apply for a renewal. If the applicant fulfills the renewal
criteria the pass will be valid for another one year. Now, with the recent changes announced,
the validity of renewals subsequent to the first renewal will be extended for a period of two
years.

Copyright © 2019 Rikvin Pte. Ltd. | All Right Reserved Last updated Sep 2019 | 2
(https://www.rikvin.com/relocation/singapore-entrepreneur-pass/)
 Page 3

Evaluation criteria to be broadened: The evaluation criteria for the applicants of EntrePass
remain stringent; the applicants are required to fulfill at least one of the following seven
innovation criteria:

●● Has funding from a government accredited VC or business angel

●● Holds an intellectual property
●● Holds significant business experience/network and promising entrepreneurial track
record
●● Has exceptional technical/domain expertise in an area related to proposed business
●● Holds good track record of investing in businesses and want to grow new or existing
businesses in Singapore
●● Has research collaboration with A*STAR or a university
●● Is an incubatee at a government-supported incubator

The minister has confirmed that the government would continue to remain choosy in selecting
the applicants and in that respect the evaluation yardstick will be broadened.

Renewal criteria amended: Renewal of EntrePass will be based on criteria such as proof
of business activities, percentage of shares held in the company, as well as others shown in
the following table:

NO. OF YEARS YOU HAVE TOTAL BUSINESS SPENDING** MUST EMPLOY AT LEAST
HELD AN ENTREPASS MUST BE AT LEAST
1 - -
2* $100,000 3 FTES** OR 1 PME***
4 $200,000 6 FTEs OR 2 PMEs
6 $300,000 9 FTEs OR 3 PMEs
8 $400,000 12 FTEs OR 4 PMEs

*Hold a minimum of 30% shares in the Company from Year 2

**Total Business Spending (TBS) refers to total local business spending excluding
renumeration to EntrePass holder
***Full-time Employees (FTEs) refer to Singaporeans and Permanent Residents who earn a
monthly salary of at least $1,100
****PMEs refer to professionals, managers and executives who are Singaporeans or
Permanent Residents and earn a monthly salary of at least $3,600
Note: 1 local PME = 3 local FTEs

Copyright © 2019 Rikvin Pte. Ltd. | All Right Reserved Last updated Sep 2019 | 3
(https://www.rikvin.com/services/singapore-immigration/entrepreneur-pass-application/)
 Page 4

Passes for EntrePass Holders’ Families

You can now bring your family into Singapore under Dependant’s Pass and Long Term
Visit Pass. However, the criterion is stringent. You cannot bring in your family at the time of
application for EntrePass. Your family can only enter Singapore under Dependant’s Pass and
Long Term Visit Pass upon your EntrePass renewal (after 1 year) and your family would have
to apply and go through DP and LTVP assessment before they can apply for either.

In addition, EntrePass holders can only bring their family in if they meet the requirements for
total annual business spending and local employment:

TO BRING YOUR YOUR TOTAL ANNUAL YOU MUST EMPLOY AT LEAST

BUSINESS SPENDING
MUST BE AT LEAST

• Spouse (common-law or $100,000 3 local FTEs OR 1 local PME

legally married)
• Children
Parents $200,000 6 local FTEs OR 2 local PMEs

To bring your family in, you need to apply for the respective pass types:

FAMILY MEMBER PASS TYPE

• Spouse (legally married) Dependant’s Pass

• Unmarried children under 21 years of age, including
those legally adopted

• Common-law spouse Long Term Visit Pass

• Unmarried handicapped children above 21 years old
• Unmarried step-children under 21 years old
• Parents

Start a company in Singapore through

the Entrepreneur Pass scheme KNOW MORE
Take advantage of the relaxed eligibility criteria for EntrePass
and form a company in Singapore.

Copyright © 2019 Rikvin Pte. Ltd. | All Right Reserved Last updated Sep 2019 | 4
(https://www.rikvin.com/blog/singapore-game-to-welcome-foreign-entrepreneurs-through-entrepass/)
RIKVIN PTE LTD
30 Cecil Street,
#19-08 Prudential Tower,
Singapore 049712

Phone: +65 6320 1888

Whatsapp: +65 8699 8821
E-mail: info@rikvin.com
Website: rikvin.com

OUR REGIONAL PRESENCE

The information contained herein is intended for general information purposes

only and shall not be regarded as professional advice. Readers are therefore
advised that before acting on any matter arising from these notes, they should
discuss their particular situation with the Firm. No liability can be accepted for any
action taken as result of reading the notes without prior consultation with regard
to all relevant factors.

FOLLOW US ON:

Copyright © 2019 Rikvin Pte Ltd (UEN 200708442E). All rights reserved.