Employment Pass vs EntrePass: Which Is Right for Foreign Founders?

Foreign entrepreneurs looking to start or grow a business in Singapore often face a key decision: Employment Pass (EP) or EntrePass? While both passes allow foreigners to live and work in Singapore, they serve different purposes and have distinct eligibility criteria. This SEO-driven guide explains the differences between the Employment Pass and EntrePass, helping foreign founders choose the right option.

Overview: Employment Pass vs EntrePass

The Employment Pass and EntrePass are issued by Singapore’s Ministry of Manpower (MOM), but they are designed for different founder profiles. Understanding how each pass works is essential before incorporating a company or relocating to Singapore.

Criteria	Employment Pass (EP)	EntrePass
Target applicants	Professionals, executives, directors	Startup founders & entrepreneurs
Company stage	New or existing companies	Innovative startups
Salary requirement	Yes (minimum qualifying salary)	No fixed salary requirement
Business requirements	Standard company operations	Innovation, funding, or IP-based

What Is an Employment Pass (EP)?

An Employment Pass (EP) is the most common work pass used by foreign founders who set up or join a Singapore company as a director or employee.

Key Employment Pass Requirements

To qualify for an EP, applicants must:

• Hold a managerial, executive, or specialist role

• Earn a minimum qualifying salary (reviewed periodically by MOM)

• Possess relevant qualifications and experience

• Be employed by a Singapore-registered company

For founders, this typically means incorporating a Private Limited Company (Pte. Ltd.) and appointing themselves as a director or employee.

Benefits of the Employment Pass

• Suitable for most business types

• Allows flexibility across industries

• Easier to align with traditional business models

• Eligible to apply for Dependant’s Passes for family members

  
  

Limitations of the Employment Pass

• Salary requirements must be met and sustained

• Applications are assessed against the COMPASS framework

• Not ideal for early-stage startups with limited revenue

  
  

What Is an EntrePass?

The EntrePass is designed specifically for foreign entrepreneurs who want to start innovative or venture-backed businesses in Singapore.

Key EntrePass Requirements

Applicants must meet at least one of the following criteria:

• Secured funding from a recognised venture capitalist or angel investor

• Own innovative intellectual property (IP)

• Have a strong entrepreneurial track record

Additionally, EntrePass holders must meet business spending and local hiring milestones to renew their pass.

Benefits of the EntrePass

• No minimum salary requirement

• Designed for startups and innovative businesses

• Suitable for founders without immediate revenue

  
  

Limitations of the EntrePass

• Limited to qualifying startup business models

• Renewal depends on meeting strict milestones

• Not suitable for traditional service or trading businesses

  
  

Employment Pass vs EntrePass: Which Is Better for Foreign Founders?

Choosing between an Employment Pass and EntrePass depends on your business model, funding status, and growth plans.

An Employment Pass may be more suitable if:

• You are running a consulting, trading, or services company

• Your business can support a qualifying salary

• You want flexibility and fewer innovation-based requirements

An EntrePass may be more suitable if:

• You are launching a tech startup or innovation-driven business

• You have venture funding or proprietary IP

• Your business is still in the early stages and revenue is limited

  
  

Can Foreign Founders Switch Between EP and EntrePass?

Yes, foreign founders may switch between passes if their circumstances change, subject to MOM approval. For example, a startup founder may begin on an EntrePass and later transition to an Employment Pass once the business stabilises and meets salary requirements.

Common Mistakes Foreign Founders Make

• Choosing EntrePass without meeting innovation criteria

• Applying for an EP before the company is properly set up

• Underestimating salary or renewal requirements

• Failing to plan long-term compliance and hiring obligations

Professional advice can help avoid delays or rejections.

Conclusion

Both the Employment Pass and EntrePass offer viable pathways for foreign founders to build businesses in Singapore. The right choice depends on your company structure, funding, and growth strategy. By understanding the key differences between the Employment Pass vs EntrePass, foreign entrepreneurs can make informed decisions and set their business up for long-term success in Singapore.