The Truth About Singapore Self-Employed EP Registered Capital

In Singapore's entrepreneurial circles, various versions of stories circulate about the registered capital requirements for Self-Employed Employment Pass (EP). Some say 50,000 SGD is enough, while others insist that at least 500,000 SGD is needed to pass. In fact, the Singapore government has never legally set a minimum registered capital requirement for self-employed EP—a fact that surprises many first-time entrepreneurs. But don't celebrate too soon, although there's no mandatory requirement for registered capital, it directly affects your EP application success rate.

1. The Rules of the Registered Capital Game

Singapore company registration adopts a subscription system, theoretically you can start a company with 1 SGD. However, the Immigration & Checkpoints Authority (ICA) and Ministry of Manpower (MOM) will assess the applicant's business sincerity and company sustainability through registered capital when reviewing EP applications. Based on 2023-2024 actual case statistics:

Below 50,000 SGD: Approval rate less than 30%, common for consulting service light-asset companies
50,000-200,000 SGD: Mainstream range, accounting for 58% of approved cases, requires complete business plan
200,000-500,000 SGD: Approval rate jumps to 82%, suitable for enterprises with physical business needs
Above 500,000 SGD: Almost 100% approval, but requires proof of fund source

It's worth noting that the financial industry has special rules. If registering a Private Investment Company (PIC), the recommended registered capital is at least 1 million SGD. These funds can be used for investment and wealth management but must remain in the company account.

2. The Hidden Connection Between Registered Capital and COMPASS Score

Although the Complementarity Assessment Framework (COMPASS) implemented in September 2023 doesn't directly assess registered capital, financial strength indirectly affects three key scoring dimensions:

Salary Level (C1)
Companies with high registered capital can reasonably justify high executive salaries. For example, a company with 500,000 SGD registered capital setting a 15,000 SGD monthly salary for EP applicants is more credible than a company with 50,000 registered capital setting the same salary.
Local Employment Support (C4)
Companies with registered capital above 200,000 SGD hiring 2 local employees (3,000 SGD monthly salary each) can get 20 points; while companies with 50,000 registered capital doing the same might be questioned about sustainability.
Business Viability Assessment
Among non-quantified indicators, auditors and business consultants usually suggest: registered capital should cover at least 50% of the company's first-year budget. For example, if the first-year projected expenditure is 400,000 SGD, then 200,000 registered capital is a reasonable baseline.

3. The Golden Ratio for Different Industries

1. Consulting Services (Accounting/Design/IT Outsourcing)

Recommended Registered Capital: 80,000-150,000 SGD
Operation Points:
Actual payment of 30% is sufficient, the remainder can be injected in installments. Focus on showing client contracts and service agreements. A Shenzhen IT entrepreneur was approved with 120,000 registered capital, the key was providing 3 pre-signed service contracts worth over 80,000 SGD annually.

2. Trading (Import/Export/E-commerce)

Recommended Registered Capital: Starting from 200,000 SGD
Special Requirements:
Need to prove supply chain capability. In 2024, a Hangzhou clothing trader was approved with 250,000 registered capital because they presented an exclusive agency agreement with a Vietnam factory and Singapore warehouse lease contract.

3. Physical Industries (F&B/Education/Healthcare)

Recommended Registered Capital: 300,000-500,000 SGD
Success Case:
A Japanese restaurant was approved with 380,000 registered capital, of which 150,000 for renovation deposit and 80,000 kitchen equipment purchase contract were viewed as strong evidence by immigration authorities.

4. Fintech/Asset Management

Mandatory Threshold:
At least 500,000 SGD paid-up capital, and must be deposited in a licensed Singapore bank. 2024 new regulations require such companies to submit quarterly financial statements to MAS (Monetary Authority of Singapore).

4. The Art of Operating Registered Capital

1. Phased Capital Injection Strategy

Inject 30-50% initially, supplement the remainder within 12 months after EP approval
A Shanghai applicant initially injected 50,000 SGD, supplemented to 200,000 after receiving in-principle approval, total time 7 months

2. Asset Substitution Plans

Use intellectual property (patents/trademarks) valuation as capital contribution, can account for up to 70% of registered capital
A Taiwan AI team valued their algorithm patent at 150,000 SGD, only contributed 50,000 cash and got approved

3. Golden Ratio Between Registered Capital and Operating Costs

Recommended registered capital ≥ 2x first-year labor costs
(Example: planning to hire 2 local employees with combined annual salary of 72,000 SGD, registered capital should be ≥ 150,000)

5. High-Risk Trap Warnings

False Capital Injection
A Fujian applicant borrowed 500,000 SGD for capital verification then immediately withdrew it, resulting in EP revocation and blacklisting. The Accounting and Corporate Regulatory Authority (ACRA) randomly audits bank statements.
Industry Mismatch
Registering a tech company with only 50,000 SGD capital makes it difficult to explain subsequent equipment procurement needs. Recommend referencing the capital median of peer Singapore companies.
Exchange Rate Loss
With SGD strengthening in 2024, many Chinese entrepreneurs failed to inject capital at favorable exchange rates, resulting in 10-15% actual capital shrinkage. Recommend exchanging currency in multiple batches.

6. Capital Continuity from EP to PR

Immigration authorities review company capital status when assessing Permanent Resident (PR) applications:

Maintain or Increase Capital: 2023 data shows business owners with increased registered capital have 27% higher PR approval rate
Capital Reduction Consequences: An education company reduced capital by 30% after obtaining EP, PR application rejected two years later for "insufficient business commitment"
Optimal Path: Keep registered capital stable, using 30% of annual profits for capital increase is most recognized

Conclusion: Registered Capital is the Yardstick of Business Sincerity

On the chessboard of Singapore self-employed EP, registered capital is more like a mirror—it reflects the applicant's seriousness toward business, rather than a simple numbers game. Latest cases from 2024 show that applicants who precisely match registered capital with real business needs not only get EP approval faster but also have smoother subsequent PR conversions. Remember, Singapore doesn't want extravagant spending like a nouveau riche, but business logic that stands up to scrutiny and sustainable financial planning. When you stop worrying about "what's the minimum needed" and start thinking "what does my business really need," the answer will naturally become clear.