In Singapore, an Employment Pass (EP) holder cannot start a business directly on an EP that is related to his employment with a specific company. An EP is meant for foreign professionals, managers, and executives employed in Singapore under the sponsorship of a local business. It doesn’t give permission to engage in other business activities outside of one’s sponsored employment.
However, an EP holder can pursue business, and there are ways to do that. One option is by applying for the EntrePass, another visa designed specifically for foreign entrepreneurs willing to establish and operate a business in Singapore. The EntrePass will be ideal for applicants who would like to create innovative or high-potential organizations. Candidates must be able to fit into very clear archetypes: strength for configuration, intellectual property, involvement in innovative or research-intensified companies.
On the other hand, an EP holder might also become an investor or a financial backer in a Singapore organization but can’t be directly involved in its day-to-day operations or management unless they upgrade to an EntrePass or any other suitable visa. In such a situation, this would mean that the EP holder would have to leave their current employment and apply for the significant visa if they have any desire to play an active role in their new business.
Occasionally, active entrepreneurs could also stay as passive investors in the firm, while still running their EP under another job, assuming there is no conflict of interest.
This means that even though EP holders cannot successfully start a business in Singapore under their current visa, they are able to consider other options, such as the EntrePass, for pursuing entrepreneurial ventures legally. It is very important to operate within the guidelines and restrictions of both the movement and labor laws of Singapore to ensure avoidance of potential legal issues.