Employment Pass vs EntrePass: Which Should Founders Choose?
Updated: Aug 25
TL;DR: The Employment Pass (EP) is designed for salaried professionals employed by a Singapore-registered company, while the EntrePass is designed for entrepreneurs who want to start and operate a qualifying innovative business in Singapore. Founders and directors who are employed by their own company and meet EP salary requirements may qualify for the EP. Those starting new ventures that are not yet generating salary income typically apply for the EntrePass.
Singapore has long attracted global entrepreneurs and senior professionals, and its work pass framework reflects that. For founders, company directors, and startup operators, two passes often come up in the same conversation: the Employment Pass and the EntrePass. They are frequently confused with each other—and choosing the wrong one can create complications down the line.
This guide breaks down both passes, explains the key differences, and outlines which pass is better suited to which type of founder situation.
Overview of the Employment Pass
The Employment Pass (EP) is administered by MOM and is issued to foreign professionals, managers, executives, and specialists who are employed by a Singapore-registered company. The pass is employer-sponsored, meaning the company applies on behalf of the employee.
For founders and directors, the EP is available if you are drawing a qualifying salary from your own company. The company itself must be legitimately incorporated in Singapore, and the salary paid to the director must meet MOM's prevailing EP minimum salary threshold—S$5,000 per month for most sectors as of 2023, and S$5,500 for the financial services sector.
In 2023, MOM also introduced the COMPASS (Complementarity Assessment Framework) system for EP applications. Under COMPASS, applications are assessed on a points-based framework covering individual attributes (salary, qualifications) and firm-level attributes (local workforce diversity, support for skills development). This applies to most new EP applications, with some exceptions including those earning S$22,500 or more per month.
Founders applying for an EP through their own company should be aware that MOM will assess whether the employment arrangement is genuine. The company should have legitimate operations, proper HR practices, and a credible business rationale for employing the founder in the stated role.
Key EP facts for founders:
Minimum monthly salary: S$5,000 (most sectors); S$5,500 (financial services)
Pass is employer-sponsored (company applies on behalf of director/founder)
COMPASS points framework applies to most new applications
EP holders earning at least S$6,000/month can apply for Dependant's Passes
Eligible for Singapore PR application under the PTS Scheme
Overview of the EntrePass
The EntrePass is also administered by MOM, but it is specifically designed for entrepreneurs who want to start a business in Singapore. Unlike the EP, the EntrePass is not employer-sponsored—the entrepreneur applies directly.
To qualify for the EntrePass, the applicant must either:
Have already incorporated a Private Limited company in Singapore within six months of applying; or
Intend to incorporate one.
The company must meet one of the following qualifying criteria, reflecting Singapore's goal of attracting innovative and high-growth businesses:
Funded by a recognized venture capital firm, business angel, or government agency (e.g., Enterprise Singapore)
Holding an Intellectual Property licensed from a Singapore research institution
Part of a Singapore government-supported incubator or accelerator program
Able to demonstrate innovative qualities or business model
Importantly, EntrePass applications require a detailed business plan, evidence of entrepreneurial track record, and documentation supporting the qualifying criteria. MOM assesses applications based on the quality of the business and the entrepreneur's background.
Key EntrePass facts for founders:
No minimum salary requirement at point of application
Entrepreneur applies directly (not employer-sponsored)
Business must meet qualifying innovation or funding criteria
Renewal depends on meeting business milestone targets set by MOM
Dependant's Pass eligibility tied to meeting business milestones (assessed case by case)
What Are the Key Differences Between the EP and EntrePass for Founders?
Employment Pass (EP) | EntrePass | |
Who it's for | Salaried employees (including founders drawing salary) | Entrepreneurs starting new businesses |
Sponsorship | Employer-sponsored | Self-applied |
Minimum salary | S$5,000/month (2023) | No minimum at application |
Business requirements | Company must be incorporated; employment must be genuine | Company must meet innovation/funding criteria |
COMPASS assessment | Yes (for most applications) | No |
Renewal criteria | Based on continued employment and salary | Based on meeting MOM business milestones |
PR pathway | PTS Scheme (well-established) | Possible, but timeline varies |
Dependant's Pass | Eligible at S$6,000+/month | Eligible after meeting business milestones |
Which Pass Is Right for Your Situation as a Founder?
The answer depends on your specific circumstances at the time of application. Here is a conditional breakdown:
Choose the Employment Pass if:
Your Singapore company is already incorporated and operational
You are drawing a monthly salary of at least S$5,000 from your own company
Your company has legitimate operations and a credible structure beyond your personal role
You want a clearer path to Dependant's Pass eligibility and PR
Choose the EntrePass if:
You are starting a new business in Singapore and are not yet drawing a qualifying salary
Your business is genuinely innovative, has received venture funding, or is affiliated with a recognized incubator or accelerator
You have a strong entrepreneurial track record and can support your application with evidence
You are comfortable with the milestone-based renewal framework
A common in-between scenario: Some founders initially apply for an EP through a company that employs them as a director, while concurrently building their startup. This is possible if the employment is genuine and the salary meets the EP threshold. However, MOM scrutinizes such arrangements carefully, and the employment relationship must be substantive.
What Are the Common Mistakes Founders Make When Choosing Between the EP and EntrePass?
Applying for the EP when salary requirements are not genuinely met.
Some founders attempt to apply for an EP through their own company without actually drawing a qualifying salary. MOM reviews the payroll records and business operations of the company. If the employment arrangement is not commercially genuine, the application is likely to be rejected or the pass cancelled later.
Assuming the EntrePass is easier to obtain than the EP.
The EntrePass has specific qualifying criteria that many applicants underestimate. A business idea alone does not qualify—the company must demonstrate a credible innovation story, funding, or affiliation with a recognized institution. Rejection rates for EntrePass applications are significant, and reapplying requires meaningful updates to the application.
Underestimating the milestone requirements for EntrePass renewal.
The EntrePass is not a permanent arrangement. At each renewal, MOM assesses whether the business has met the milestones agreed at the time the pass was granted—such as hiring local staff, reaching revenue targets, or securing funding. Founders who are unable to meet milestones at renewal may find themselves unable to extend their stay.
Overlooking shareholding thresholds.
There is no fixed shareholding requirement for the EP—the pass is assessed based on the employment relationship and salary. For the EntrePass, the applicant must hold at least 30% of the company shares. Founders with lower shareholding may not meet this requirement.
Not planning ahead for family.
The Dependant's Pass pathway differs materially between the two passes. EP holders earning S$6,000 or more have a relatively clear path to sponsoring a DP for their family. For EntrePass holders, DP eligibility depends on MOM's assessment of business progress, which introduces more uncertainty. Founders with families should factor this in when choosing between the two passes.
Making the Right Choice for Your Singapore Business Journey
The Employment Pass and EntrePass are both legitimate pathways for founders in Singapore, but they serve different purposes and suit different situations. The EP works well for founders who have already established their company and are drawing a qualifying salary; the EntrePass is purpose-built for entrepreneurs launching genuinely innovative ventures who are not yet at that stage.
Getting the pass decision right from the start saves time, avoids unnecessary rejections, and sets the right foundation for your business and immigration trajectory in Singapore. If you are unsure which pass suits your situation, speaking with an experienced Singapore immigration consultant can provide clarity before you commit to an application.
Frequently Asked Questions: Employment Pass vs EntrePass for Founders
Can a founder hold both an EP and an EntrePass at the same time?
No. An individual can only hold one work pass at a time in Singapore. You must choose the appropriate pass based on your specific situation and employment structure.
What is the minimum shareholding required for an EntrePass applicant?
EntrePass applicants must hold at least 30% of the shares in the Singapore-incorporated company at the time of application.
Does an EP holder need to inform MOM if they start a side business in Singapore?
EP holders are employed by a specific company and are authorized to work only for that employer. Starting a new business or taking on directorship roles in other companies without proper authorization may breach the conditions of the EP. It is advisable to seek guidance before pursuing additional business activities.
How long does an EntrePass renewal assessment take, and what does MOM check?
EntrePass renewal typically takes several weeks. MOM assesses whether the business has met the milestones set at the previous renewal, which may include hiring local employees, reaching specified revenue levels, securing investment, or achieving other agreed targets.
Can an EntrePass holder apply for Singapore PR, and how does the timeline compare to EP holders?
EntrePass holders can apply for Singapore PR, but the pathway is less straightforward than for EP holders. PR applications from EntrePass holders are generally assessed against broader criteria, including the progress of their business. There is no fixed timeline that applies to either pass—all PR applications are assessed at the discretion of ICA, and no outcome is guaranteed.
What happens to the EntrePass if the business fails or does not meet renewal milestones?
If the business does not meet the renewal milestones set by MOM, the EntrePass renewal may be declined. The holder would need to leave Singapore or transition to a different pass—such as an EP, if they qualify through another employment arrangement.
Is the COMPASS framework applicable to EntrePass applications?
No. The COMPASS (Complementarity Assessment Framework) applies to EP applications. EntrePass applications are assessed under a separate framework focused on the business's qualifying criteria and the entrepreneur's track record.
Planning to apply for Singapore Permanent Residency? Speak with our team to learn more about the application process and how to prepare the required documents with confidence.
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