The Economic Development Board is set to accept applications for Tech Pass in Singapore in January next year. The plan is in line with the city-state’s goal of further enriching its already vibrant technology sector.
The government said that 500 slots for the new work pass would be available upon its launching in 2021. It was introduced to encourage tech entrepreneurs, experts, and leaders in setting up their business in Singapore or providing expertise in the field.
Those who will become Tech Pass holders are granted flexibility in participating in various tech ventures. These include building and operating a business, becoming an investor, consultant, or director in a local company. In addition, they can serve as mentors to tech startups or provide lectures at the local universities.
With this authority, Singapore truly eases the barriers for foreign entities, which is seen benefitting the tech sector. After all, an investor is keener to put their money under a regime with fewer restrictions.
Who are the Eligible Applicants for Singapore Tech Pass?
Before rushing into making business plans, you have to check first if you are eligible to apply for the said work pass. The Singaporean government laid out the following requirements:
- The applicant should have at least a fixed monthly salary of $20,000 in the past year.
- The applicant should have at least five cumulative years of serving in a leadership role at a tech company. This firm should also have at least market capital of $500 million or funding of at least $30 million.
- The applicant, serving at a leadership role, has at least five years of experience in the development of a tech product. Such a product should have at least 100,000 monthly active users or generated at least $100 million in revenue.
If you meet at least two of the criteria, you are eligible to apply for the Tech Pass.
Who is Eligible for the Renewal of Singapore Tech Pass?
The Tech Pass has a validity of two years. You can apply for renewal for another two years once the term of validity expires. But before you do that, make sure that you meet the eligibility requirements for renewal as well. Here they are.
The pass holder should have earned at least $240,000. It must be an assessable income according to the latest Notice of Assessment from the Inland Revenue Authority of Singapore. It can consist of salaries and business income.
The business has at least $100,000 annual spending.
In addition, it should have employed one local PME or 3 LQS. PME refers to professionals, managers, and executives who are Singaporeans or permanent residents with at least $3,900 fixed monthly salary. LQS, meanwhile, means local qualifying salary, or Singaporeans or permanent residents with a monthly salary of at least $1,400.
Roles at the Time of Renewal
During the renewal process, the applicant must be performing at least two leadership or professorial roles. Some roles can be as follows:
- founder of a tech-based company in Singapore
- a top official at a Singapore-based tech firm
- technical role and leading a Singapore-based company team, such as a senior engineer or senior researcher
- director of a company not necessarily in the technology industry
- advisor or mentor to a local startup
- professor or lecturer at a local university
Starting Your Business in Singapore
If you are not yet familiar with setting up your business, it may be best for you to seek professional help, especially if you are a foreign entity in Singapore. For your Singapore incorporation services, reach out to 3E Accounting today.