If you are living in Singapore, this might be the right time for you to be a freelancer. The demand for the freelancers is on the rise in Singapore. It is in marked contrast to the traditional approach of Singaporeans of securing a permanent job with a company.
Are there any
Freelancers in Singapore?
This is still a new trend and as per the reliable sources, there are as many as 2,00,000 freelancers working in Singapore. As many as 82% of them have chosen to do so voluntarily. The number is not as high as you can find it in other countries like the United States which boasts of 68 million freelancers. However, finally, the freelancing economy is taking roots in the little island.
Freelancing offers a number of benefits. It enables you to manage your work and life balance. You also do not have to make efforts to conform to a company's work culture or schedule. You are your own master and can choose the type of work you want to do, the workplace you would like to work at, and how long you want to work. Does that inspire you to be a freelancer? And, what if you are a foreigner living in Singapore.
Can DP Holder Work as Freelancers in Singapore?
By now, you surely know that the foreigners need a work visa or work permit for holding a job in Singapore. And, they must only work for their designated employer. The holder of Employment Pass or S Pass cannot accept additional jobs or start activities to earn extra money. Well, how about the Dependant's Pass (DP) holders? Can they work as a freelancer in Singapore?
No, the freelancing jobs in Singapore are most suited for its citizens and permanent residents as they can change their jobs at will. They do not need to wait for the approval for any passes or permits to do so.
However, there is a workaround for the DP holders. They can work in Singapore and be choosy in who they work for and in the type of the work they want to do. But for it to happen they either have to register a Private Limited Company (Pte Ltd).
How to Be Your Own Boss
Registering a private limited company in Singapore is the better option of the two. A Pte Ltd has its own identity. It limits the liability of its stakeholders. It is responsible for its own debts and losses incurred in the course of its business activities. The following are pre-registration requirements that they have to be ready with:
At least 1 resident directorr
At least 1 shareholderr
At least 1 company secretaryr
Minimum of $1 in initial paid-up share capital
Registered office address
Memorandum and Articles of Association (M&AA)
Registering a Singapore Pte Ltd for DP Holderr
As you can see, at least one resident director is necessary for forming a company in Singapore. And, only Singapore citizens, Permanent Residents, and employment pass holders can assume this position. The dependent's pass holders are not eligible to act as the resident directors. Following are the steps to start a new company in Singapore.
1#rnThe dependent's pass holders have to find one such individual who will be ready to work as the director of their new company.
2#rnFailing that, they must hire the nominee director service from the provider of such services in Singapore. It is not at all difficult to find such a firm. There are many company registration services providing firm in Singapore that provides such a service.
3#rnSubmit all their incorporation documents to the services provider, like,
Description of business activityr
Memorandum and Articles of Association (M&AA)
Copy of passportr
Residential address proof, Bank reference letter, Personal & business profile, Particulars of directors, company secretary, & shareholders
4#rnRegister their company with the Company Registrar of Singapore, i.e. ACRA.
5#rnTake care of the post-incorporation activities like,
Get a tax number for your Singapore businessr
GST registrationr
Corporate bank accountr
Open CPF account & top it upr
Register for the Skills Development Levy (SDL)
Appoint an auditor
6#rnAfter the successful registration of the company, they can
hire a company secretary who will then, apply and get an employment pass from MOM for them. It will enable them to work in Singapore.
7#rnAfter acquiring the employment pass they will be able to replace the nominee director and work in Singapore as the resident director of their company.
While taking care of their company's business activities they will have full control over what they want to do. They can choose to do whatever they want and be as flexible in their work as the freelancers. Registering a company in Singapore puts DP pass holders in charge and allow them to be their own masters. This is the most legal way for the dependent's pass holders to exercise their free will while working in Singapore.