An Employment Pass (EP) and EntrePass are two essential work passes that all foreign professionals must be aware of if they intend to work in Singapore. These two passes are among the most popular work passes for foreign entrepreneurs and knowing their difference is crucial to setting up your business.
Fortunately, we’ve racked up all the important details regarding the EP vs EntrePass. Bear in mind that there is more than one factor you should consider when selecting which pass is the most suitable for you and your business profile.
There are many important differences between the Employment Pass vs EntrePass, and this article will most likely direct you towards the right permit for you.
What is an EP?
The Singapore Employment Pass (EP) is a work pass that allows foreign business professionals, managers, and executive officers to work in Singapore. To be eligible for this pass, you will need a Singapore Registered Company to sponsor you on the pass.
Candidates have to earn at least S$5,600 a month and have acceptable qualifications. Older candidates need higher salaries to qualify. On the other hand, employers need to prove that they have fairly considered other applicants for the role and also, sufficient finances to cover annual staff cost
An employer has to apply for an Employment Pass on behalf of the candidate. Once the pass is approved, a first-time candidate can stay and work in Singapore for up to 2 years. Every next renewal grants the duration of stay of up to 3 years. There is no foreign worker levy or quota that is required.
Finally, it is also important to denote that the EP allows passes for family members. That means that an applicant who successfully goes through the process and obtains the pass can come to Singapore with their loved ones either via the Dependent Pass (DP) or Long Term Visit Pass (LTVP) routes so long as they meet the minimum salary requirement to sponsor their dependants.
What is an EntrePass?
The Entrepreneur Pass (EntrePass) is a scheme devised for foreign serial entrepreneurs, high-profile innovators, or experienced investors that have an interest in starting a business in Singapore. This also includes relocating to Singapore.
The government of Singapore has a plan to attract foreign talent to the country with the aim of becoming a regional business hub. In the case of EntrePass, there is no stipulated minimum salary. A first-timer enjoys a stay of up to 1 year for the initial application and the first renewal. Every next successful renewal grants a duration of stay of up to 2 years.
If the pass holder has a family, it is worth noting you can get certain family members to join you in Singapore if you meet the requirements for minimum business spending and local jobs created. Also, there is no foreign worker levy or quota required.
Finally, bear in mind that an applicant has to meet the following minimum eligibility criteria under one of the below stipulated categories:
1. Raised funding for a past or current business
You have raised at least SGD 100,000 from a single funding round from investors for any past or current business.
Examples of eligible investors include:
- SEEDS Capital
- Vertex Ventures
- Partners under Enterprise Singapore’s Startup SG Equity (SSGE) Programme
- Internationally renowned Venture Capital (VC) firms, corporates, business angels, etc
2. Supported by a government-recognised or internationally renowned incubator or accelerator
The business is or will be supported by an incubator or accelerator that is either:
- Government-recognised
- Internationally renowned
Examples of eligible investors include:
- Partners under Enterprise Singapore’s Startup SG Accelerator (SSGA) or Startup SG Founder (SSGF) programmes
- Internationally renowned incubators or accelerators such as Y-Combinator, MassChallenge, Alchemist Accelerator, etc.
3. Founded and sold a technology business
You have founded and sold a business that is venture-backed or owns innovative technologies.
4. Holds intellectual property
The registered business or proposed business holds Intellectual Property (IP) that is registered with an approved national IP institution.
The IP must provide significant competitive advantage which cannot be easily replicated to the business.
5. Have a research collaboration in Singapore
The business has a relevant ongoing research collaboration in Singapore with at least one of the following:
- Institute of Higher Learning (IHL)
- Research Institution (RI)
Examples of eligible IHLs and RIs include:
- IHLs as listed by the Immigrations & Checkpoints Authority (ICA)
- RIs under the Agency for Science, Technology and Research (A*STAR)
- Universities and institutions under the Campus for Research Excellence and Technological Enterprise (CREATE)
Requirements
The research collaboration must:
- Have your involvement
- Be related to the business
- Be verified by a contact person from the institution
Main similarities between EP and EntrePass
Many people make the mistake of thinking that an EP and an EntrePass are the same because there are certain areas where these passes overlap.
- First of all, it is worth saying that both passes are temporary residency schemes that allow the applicant and their immediate family to relocate to Singapore.
- Applications for both Singapore work passes are subject to review. This means that approval is needed and it is authorized only by the authorities.
- Both schemes are issued for 1 to 2 years and they are renewable. Also, both passes allow the holder to bring certain family members along.
- Additionally, no scheme stipulates an official requirement for a paid-up capital. However, a paid-up capital amount of S$ 100,000 or more is likely to be a contributing factor in the review of both the EP and EntrePass applications. This is especially true for EP applications, where MOM is focused on the company’s finances.
Differences between the two types of work passes
Having explored the similarities, let’s now examine the differences between these two types of work passes.
|
Feature |
EntrePass |
Employment Pass |
|
Shareholding Requirement |
At least 30% shareholding in the company |
No minimum shareholding requirement |
|
Minimum Salary |
No minimum salary requirement |
Minimum S$5,000 per month, higher for older candidates |
|
Qualifications & Experience |
Not specified |
Sufficient acceptable qualifications and experience required |
|
Family Member Eligibility |
Can bring family after 3 months if requirements met (minimum business spending and local jobs created) |
Can apply for Dependant’s Passes and Long Term Visit Passes immediately after approval |
|
Business Incorporation |
Not required before application; must incorporate within 1 year after EntrePass is issued |
Not applicable |
This table outlines key distinctions such as shareholding, salary requirements, and family member eligibility criteria, providing a clear comparison between the EntrePass and Employment Pass schemes.
Application timing
If a candidate wishes to apply for a work pass before incorporating the company, they will only have the option to apply for EntrePass (because an Employment Pass can only be applied after the company is set up).
If the EntrePass application is approved, the candidate will be required to incorporate the company within 1 year from issuing the EntrePass (by the next renewal).
Education-related requirements
Education-related qualifications are less relevant for EntrePass applicants since the business idea and the applicant’s relevant background both carry more weight.
In the case of an Employment Pass, on the other hand, the applicant should have a tertiary degree from a reputable university and extensive professional experience. Applicants who do not have good recognized qualifications will need a higher salary to qualify for an EP.
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Business idea and business plan criteria
If a candidate wishes to apply for the EntrePass, the business idea has to be entrepreneurial and innovative in nature. It is necessary to submit a business plan of approximately 10 pages as part of the application.
It must have the potential for good growth and result in the increased hiring of local employment. Routine business ideas such as travel agency, staffing agency, and so on, do not qualify for EntrePass applications.
On the other hand, Employment Pass applications usually do not require a business plan, but the authorities may ask for certain details on a case-by-case basis.
Local workforce recruiting requirements
Bear in mind that the EntrePass has local staff hiring requirements that shall be taken into account during the renewal processes.
The business has to employ a certain minimum number of full-time local staff (starting from three local employees or one local professional, manager or executive) by the end of the second year of the pass holder’s validity in order for the pass holder to be eligible to renew their pass. The local hiring requirement will increase with each year of renewal. Hiring local staff is one of the key requirements for EntrePass renewals and this information is included in the official EntrePass guide.
Business spending requirements
Finally, keep in mind that EntrePass renewal has a certain minimum requirement in total business spending. This requirement ranges from S$ 100,000 to S$ 400,000 over the past 12 months.
Conclusion
Both the EP and EntrePass can be quite useful to many business professionals. However, it is clear that you should choose according to your own preferences and situation.
Keep in mind the major differences you have read about in this guide. The Employment Pass was designed for company staff and executives while the EntrePass was designed for founders.
The main evaluation criteria for the EP lies in the company credentials and applicant credentials while the criteria for the EntrePass include the proposed business idea, local hiring, investment amount, and the relevant background of the applicant.
So, think well before you decide to apply and contact Sleek if you need any further information. Good luck!
Frequently asked questions about EP vs EntrePass
What is the difference between an Employment Pass (EP) and an EntrePass in Singapore?
An Employment Pass (EP) allows foreign professionals to work in Singapore under an employer. It requires a job offer and the candidate must meet minimum salary and qualification criteria.
An EntrePass is for eligible foreign entrepreneurs who want to start and operate a new business in Singapore. It does not require a job offer, but the proposed business must meet innovation and investment criteria.
What are the eligibility requirements for an EP vs EntrePass?
To qualify for an Employment Pass, candidates must earn at least S$5,000 per month (S$5,500 for the financial services sector) and have acceptable qualifications, usually a good university degree, professional qualifications or specialized skills.
EntrePass applicants must fulfill any of these requirements:
- Receive funding from an approved Singapore government investment vehicle
- Hold significant intellectual property
- Have an established research collaboration with a Singapore institution
- Be an incubate at an approved incubator or accelerator
- Have extraordinary achievements in tech/business and an entrepreneurial track record
What is the duration and renewal process for an EP and EntrePass?
An Employment Pass is initially valid for up to 2 years and can be renewed for up to 3 years at a time. Renewal depends on continued employment, meeting EP criteria, and the Fair Consideration Framework job advertising requirement.
An EntrePass is issued for 1 year at first and can be renewed if the business is making progress and meeting targets. After the first renewal, subsequent renewals are valid for 2 years if the entrepreneur and company continue to meet eligibility criteria.
Can EP and EntrePass holders become Permanent Residents (PRs) in Singapore?
EP holders are eligible to apply for PR status after working in Singapore for at least 6 months. Their PR application will be evaluated based on factors like skills, income, age, family ties, length of stay, etc.
EntrePass holders can apply for PR under the Global Investor Program (GIP) after their business is up and running, and meets certain investment and business spending criteria. GIP-PR applications are evaluated on a case-by-case basis.
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