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The Comparison between Employment Pass and EntrePass

In Singapore, the Employment Pass (E Pass) and Entrepreneur Pass (EntrePass) are the widely applied and popular work visas among the various immigration passes or visas in Singapore. These two are meant for foreign professionals and entrepreneurs who have plans to relocate to Singapore. Although both working passes share some similarities, there are some differences between these two passes depends on the applicant’s requirements and needs.

 

The Similarities between Employment Pass (E Pass) and Entrepreneur Pass (EntrePass)

  1. Employment Pass (E Pass) and Entrepreneur Pass (EntrePass) are work passes that the temporary residency schemes that allow foreigners to relocate themselves and their immediate family to Singapore (the latter is subject to approval by the authorities).
  2. The applications for both work passes are subject to be reviewed and approved by the government authorities.
  3. Both work passes are issued for 1 to 2 years and can be renewed subject to their respective renewal requirements.
  4. Both work passes schemes allow the applicants and their families to apply for Singapore permanent residence in due course.
  5. The pass holders of both work pass schemes must have a paid salary from the company and they are obliged to pay tax (For example, if you are issued with a work pass that is valid for at least one year, you will be treated as a tax resident upfront.)
  6. The pass holders will be liable to pay Singapore personal income tax based on their annual income.

 

How are EntrePass and Employment Pass different?

Although both passes share many similarities as described above, the passes have some crucial differences and varying factors that determine which types of work pass suits the applicant.

  1. Eligibility
    • Employment Pass: for skilled employee with professional background
    • EntrePass: for Business owner or shareholder who holds at least 30% shares of the newly setup company
  2. Timing of Application
    • Employment Pass: Once the company is incorporated
    • EntrePass: Before the company is setup or within 6 months of the incorporation
  3. Business Idea & Business Plan Requirement:
    • Employment Pass: No business plan required
    • EntrePass: Innovative business idea that will result in increased local hiring and productivity.
  4. Educational Qualifications Requirement:
    • Employment Pass: A tertiary degree from a reputable university and good professional experience.
    • EntrePass: No specific requirement.
  5. Minimum Investment /Paid-up Capital Requirement:
    • Employment Pass: No specific requirement
    • EntrePass: Minimum S$50,000
  6. Local Employees Hiring Requirement:
    • Employment Pass: No specific requirement
    • EntrePass: It’s one of the key requirements in renewal applications.
  7. Business Spending Requirement:
    • Employment Pass: No specific requirement
    • EntrePass: Minimum total business spending requirement ranging from S$100,000 to S$400,000 over the past 12 months is required upon renewal.

 
On a final note, the EntrePass allows eligible foreign nationals to start and operate a new business in Singapore while Employment Pass allows foreign talents with professional backgrounds to be employed in Singapore.