Recently, a company asked us why the Ministry of Manpower (MOM) asked for the company’s financial position when applying for an Employment Pass (EP).
This is the scenario.
A company incorporated last year approached our employment agency to apply for an EP for a potential candidate. This candidate’s proposed salary was $8,500 thereabouts (keeping the figures general to keep the client’s identity anonymous). MOM came back to request more information about the company’s financial position. The company only had less than $10,000 in the company accounts.
So what is MOM looking for?
MOM is looking for proof that the company has the financial strength to hire this particular individual. There will always be individuals who set up companies for the purpose of obtaining an EP. However, it is also highly possible that a newly incorporated company has a bona fide business that requires the hiring of a particular foreigner on an EP. However, the company must be able to substantiate its hiring of the particular candidate on top of sustaining all operating costs of the business. For example, a company would also have other employees for whom salaries must be paid. It must also pay rent and other operating expenses like utilities and internet subscriptions. Therefore, how it is possible that a company with less than $10,000 in its bank account be able to pay for all these on top of hiring that potential candidate on an EP which will cost about $8,500 a month?
We have had many newly set up companies successfully obtain EP for their candidates. This is because the company was well capitalised and could afford the salary of the candidates as well as other costs. It helps, in fact, it is important, that these companies have an operating place of business.
If you are a company looking for assistance as well as advice on how to obtain EPs for your candidates, do contact us at [email protected].
Yours sincerely,
The editorial team at singaporeemploymentagency.com