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Founder EP Applications: Explaining a New Singapore Company’s Business Activity and Salary Funding

Singapore waterfront and business district
Singapore waterfront and business district

For a founder’s Employment Pass application, explain what the Singapore company will actually do, why the proposed role is needed and how the declared salary will be paid. Incorporation and share ownership do not themselves establish EP eligibility. Prepare accurate documents and assess the prevailing salary, COMPASS and other applicable requirements before the company submits an application.

Separate company formation from permission to work

A company may be incorporated before the founder has permission to work in Singapore. Do not treat its registration, a director appointment or a business plan as a work pass. Identify the proposed employer and role, and obtain advice on the appropriate route and what the founder may do before approval and issuance.

MOM describes EP eligibility as a two-stage framework involving the qualifying salary and, unless exempt, COMPASS. Use the criteria applicable to the application date. A new company is not automatically entitled to approval because its founder can invest money in it.

What documents does MOM require?

MOM’s document guidance includes the candidate’s passport particulars, the company’s latest ACRA business profile or instant information, and qualification verification where applicable. MOM may request other documents, including evidence that the declared salary will be paid. Check the official requirements and any request made for the individual application.

The preparation checklist below is practical supporting material, not a claim that every item is a mandatory attachment in every EP application.

Prepare a consistent business explanation

Use records the company genuinely has. Label a proposal or forecast as such. Do not present a prospective customer as a signed client, a quotation as confirmed revenue or a planned office as an existing lease.

Make the salary explanation match the accounts

Check whether the employment terms, application figures, funding records and business budget are consistent. An unexplained transfer or an optimistic sales forecast may not answer a question about how salary will be paid. Have the accountant identify the source and status of funding so the explanation is factual.

A founder’s personal wealth and money actually available to the employing company are different things. Where funding is a loan or share subscription, keep the supporting corporate and accounting records clear.

A practical example

Illustration: A founder establishes a Singapore consulting company and proposes to work as its regional operations lead. The preparation file distinguishes two signed engagements from three prospective leads, explains the actual role and reconciles company funding to a budget. It does not claim that the number of contracts guarantees approval or that ownership removes the need to meet EP criteria.

How should you handle a request for more information?

Answer the specific request, use the required channel and follow the stated deadline. Explain discrepancies directly and attach relevant evidence rather than sending an unrelated collection of documents. Get advice if the request reveals uncertainty about the role, business activity or funding.

Before applying

Review eligibility using current MOM information, including applicable advertising requirements and exemptions. Confirm who is authorised to submit for the company. Allow for assessment and possible requests, and avoid making relocation or employment commitments on an assumed approval date.

Related guides

Official sources

How Raffles Corporate Services can help

If you would like assistance with Singapore incorporation and work-pass application preparation, email [email protected] or WhatsApp +65 8501 7133. We can coordinate relevant corporate services, tax advice and, where needed, legal assistance from advisers at associated law firms. Legal advice and representation are provided by those advisers. This article is general information and does not replace advice on your circumstances.

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