Wbring the World to Singapore, and take Singapore to the World.

HOME INSIGHTS All
23 JUL 2019

Driving in Singapore: Converting a Foreign Driving License

If you are relocating to Singapore and you already have a driving license of another country, it may be necessary for you to convert your foreign driving license to a Singapore driving license. This is essential so that you can legally drive in Singapore.

However, there are a few cases where this does not happen. Let us understand and learn who is (and who is not) eligible to legally drive in Singapore with the help of a foreign driving license and also, the conditions and steps for converting a foreign driving license into a Singapore driving license.

Even though cars are not reasonably affordable in Singapore, most of the people are ready to spend for their comfort.

As a general rule, driving in Singapore makes it essential to have a Singapore driving license. It is mandatory for all citizens and permanent residents of Singapore to have a proper Singapore driving license to drive there.



License to Drive

However, since it is a global city-state, Singapore does permit select drivers of foreign origin to use their proper foreign driving license to drive in Singapore.  Instances of such select categories are:

·         Visiting foreigners, Social Visitor Pass (SVP) holders, Short-term Pass Holders are permitted to drive in Singapore with the help of a valid foreign driving license.

·         Long-term Pass Holders, comprising Student Pass (STP), Employment Pass (EP), Long-term Visit Pass (LTVP) and Dependent’s Pass (DP) holders can use their foreign driving licenses to drive in Singapore for up to 12 months.  The 12 months period begins from the date of your last entry into Singapore (before getting the pass), NOT from the date the Pass was issued.

·         Work Permit (WP) and S-Pass Holders can use their foreign driving licenses to drive within Singapore for a period of 6 months. This 6-month period begins on the date the pass is issued.

Without doubt, in all cases, the license needs legally permitted for the category of vehicle you drive.


Foreigner driving in Singapore, Singapore Driving Requirements, Conversion of driving license in Singapore


Converting a Foreign Driving License to a Singapore Driving License


The Right Time

It is mandatory to convert your foreign driving license to a Singapore driving license, in the following cases:

·         You are a foreigner but your stay in Singapore has exceeded 12 months. You do not have to wait for 12 months. Once you get a pass that is valid for more than 12 months, you can immediately apply for the conversion.

·         You have a Work Permit (WP) or S-Pass for more than 6 months. Also, you can right away request for conversion after receipt of the pass/permit that is valid for more than 6 months.

·         You are a Singapore Permanent Resident (SPR) or Singapore citizen (Singaporean).  New SPRs or new citizens are required to apply for the conversion foreign driving license to Singapore driving license not later than 3 months after getting SPR/citizenship. You cannot drive in Singapore with your foreign driving license once you obtain SPR or citizenship. For SPRs and citizens returning from abroad, getting a Singapore driving license is a must before getting behind the wheel in Singapore.

Apart from the above, other foreigners are not permitted to convert their licenses to Singapore ones their foreign licenses can be used here.


The Requirement

Applications to convert a foreign driving license to a Singapore driving license are refused if:

·         Just a month is left for your pass or work permit to expire.

·         You are yet to pass the Basic Theory Test (BTT).

·         Your driving license has already lapsed. You need to submit a few extra documents.

·         Your driving license does not have a date of issue. In this case, you will have to submit additional particulars.

·         Your Singapore pass/permit has been issued before your foreign driving license. For instance, you might have received your driving license in your country of origin on a holiday, while you already had a student pass in Singapore.

·         Your country of residence and the country that has issued your foreign driving license are different. It is mandatory to present documents such as; passport stamps, visas, employment record, academic records, tax returns, bank statement, as evidence of you having lived (studied, worked, or just lived) in the country that issued the driving license for 1 year or more AND proving that you lived in that country for a total period of at least 6 months, of a year.

If your driving license is in any other language, apart from English, you must have a valid international driving permit (IDP) or an official translation from your embassy or any Singapore registered translation companies.


The Process

Ahead of applying for conversion of a foreign driving license to a Singapore driving license, the applicant must pass the basic theory test (BTT).

The BTT is a test of the laws and rules of Singapore traffic signs and signals. It is conducted on a computer in one of the three driving schools (Bukit Batok Driving Centre (BBDC, west), ComfortDelGro Driving Centre Pte Ltd (CDC, east), and Singapore Safety Driving Centre (SSDC, north)).

Despite being easy and simple, to prepare for this test, you must read the official Basic Theory Handbook, a free version of which (PDF in 4 languages) is available on Singapore Police Force’s Online Learning Portal.  You should spend some time on that portal if you are new to Singapore roads.

The BTT is to be booked with any of the 3 driving schools, following which you need to prepare for the test. Earlier booking is recommended due to some slots being in demand.

Once you have passed the BTT, you must apply for converting your foreign driving license to a Singapore driving license at the Traffic Police Test Centre kiosk. All the mentioned driving schools have this kiosk. Your application must be attached with the following documents:

·         A photocopy (original for reference) of your passport and/or NRIC/entry permit, EP/STP/WP/S-Pass/LTVP.

·         A photocopy (original for reference) of a valid foreign driving license.

·         One passport-sized photograph (matte, color, white background, …)

·         A non-repayable processing charges of $50 (No cash; NETS and cash-card only).

·         The IDP or English translation of your driving license, in case it is in another language.

·         Additional papers proving that your foreign driving license was issued when you were a resident of the issuing country.

If your driving license has expired, or its date of issue is not mentioned, you must submit other supporting papers. The officer-in-charge will provide a list of the documents required.




The Validity

Not all Singapore driving licenses have a validity period. In the present scenario, a license that is issued to a Singapore Permanent Resident (SPR) or a citizen has lifelong validity (depending on medical checkups after the age of 65 years).

On the other hand, when a driving license is issued to a foreigner, it will have a 5-year validity.



Conclusion

From this article, it can be realized that in practice, it is very easy to get an international driving license in Singapore. Therefore, in your best interest apply for a ‘license to drive, in case you plan to drive in Singapore.

Trying to get hold of a driver’s license is a challenging task, but it has its own set of rewards. Roads in Singapore are as safe as houses –traffic congestions are seldom or never and people on the streets are most often well-behaved and alert.

Contact us to keep you better informed about Singaporean driving license procedures.

Let us help you get on the driver’s seat and explore Singapore!


Explore More Insights

Fintech Guidelines in Singapore: Regulations, Compliance and Sandbox

For fintech companies to get to work in Singapore, it important to be in line with the financial services-based rules, along with Singapore’s corporate laws. This article presents an outline of the regulations, compliance issues and sandbox guidelines, directly related to Fintech companies in Singapore. Fintech Regulations The ecosystem in Singapore provides all the support to businesses. The main controller for the majority of fintech enterprises is the MAS. Fintech businesses may come under the ruling of one or more of the following statutory provisions: ·         Commodity Trading Act ·         Moneylenders Act ·         Trust Companies Act ·         Insurance Act ·         Securities and Futures Act ·         Finance Companies Act ·         Banking Act; ·         Financial Advisers Act; ·         Companies Act; ·         Business Trusts Act; ·         Payment Services Act (PSA) substitutes the Payment Systems (Oversight) Act and the Money-Changing and Remittance Businesses Act The new PSA aims to create provisions for a better-suited atmosphere for innovation in financial settlements and also ensure the reduction of risks throughout the payments value chain. Controlled financial settlements comprise cash transfers, issue of digital money and payment tokens. Key Compliance Issues Largely, Fintech entities must think through these key regulatory compliance issues: ·         Consequences of financing (for instance, venture capital investments transformed into Fintech entities). ·         Copyright issues (for instance, administration and protection of intellectual property). ·         Financial regulatory and compliance (for instance, the kind of license required from the concerned agency or licensing reliefs that apply to a Fintech product or service). ·         Data security (for instance, the conditions enforced on Fintech enterprises, concerning personal client information that they deal with. Additionally, Singapore also has a general data protection scheme, framed by the Personal Data Protection Act 2012). ·         Consumer/technology agreements (for instance, software licensing contracts or terms of use of the Fintech product or service that cover matters of consumer protection). Also, the Cybersecurity Act 2018, is aimed at governing systems that provide basic services in Singapore. The MAS Fintech Regulatory Sandbox is a distinctive licensing system designed for Fintech entities. For a Fintech product or service to function in the Regulatory Sandbox, the MAS supplies the required regulatory support by reducing specific legal and regulatory necessities for the period of the Regulatory Sandbox. A Fintech company that applies for entry into the Regulatory Sandbox, must know about its lack of compliance with specific statutory and legal provisions while presenting the Regulatory Sandbox application. It must ensure that a plan exists for fulfilling these conditions. By and large, the Regulatory Sandbox will cease operations, if the Fintech company lacks compliance with the concerned statutory and legal standards by the close of the Regulatory Sandbox timeline.   Fintech Regulatory Sandbox Guiding Principles To convert Singapore into a smart financial center, the Monetary Authority of Singapore (MAS), lately came out with the Fintech Regulatory Sandbox Guidelines. Earlier, a consultation paper was published by MAS. This paper was to simplify the legal provisions required by Fintech companies while testing innovative financial products and services regulated by the MAS. Based on the public discussion, the MAS has issued the final legal set of rules. These rules ease governing and legal obligations due to Fintech participants wanting to test and enforce innovative financial services in Singapore. The Regulatory Sandbox As explained by Ms Jacqueline Loh, the Deputy Managing Director of MAS, “The regulatory sandbox offers a favorable atmosphere for supervisory requirements to be business-friendly, enabling them to test budding innovations within the legal provisions.” This method is advantageous because FIs and startups are not required to surrender up-and-coming innovations just because they are not aware of its compliance with the statutory and legal criteria. The MAS’s directives list the main steps right from applying for the sandbox till its operation. Easing Regulatory Criteria According to the MAS, it will ease the legal criteria for applicants who succeed to the Sandbox. The directives underline the regulatory requirements that MAS may ease. These comprise: 1.      Creditworthiness 2.      Fund credibility and capital sufficiency; 3.      Cash equilibrium. 4.      License Fee; 5.      Asset maintenance obligation; 6.      Board constitution; Main Stages of the Sandbox 1.      Application Stage The applicant presents the sandbox application to the MAS that checks the application and lets the applicant know the decision within 21 days. 2.      Evaluation Stage If the applicant is practically right for the sandbox, the MAS will evaluate the application. After assessing it, the MAS will advise in writing to the applicant, to go ahead with the sandbox, or drop the idea. 3.      Experimentation Stage After approval of the application, the sandbox is sent for the experiment, where the sandbox entity should apprise its customers about the financial service it operates sandbox and also about the corresponding risks. The entity must get a confirmation from the customers that they are clear about all risks. Evaluation Criteria The evaluation criteria in the guidelines to be filled by the applicant are: 1.      The projected financial facilities use innovative technology, a rising technology or any prevailing technology differently; 2.      The projected financial service focuses on specific matters or benefits consumers or the domain; 3.      Once an applicant leaves sandbox, the intention is to expand the proposed financial service in Singapore; 4.      The experiments and intended results of the sandbox tests must be well-defined, and the sandbox entity must update on the developments to the MAS consistently; 5.      The corresponding limitations should be precisely stated; 6.      The applicant must identify and eliminate the serious threats owing to the projected financial service 7.      A satisfactory exit and changeover plan must be clear, in case the projected financial service is to be stopped. Promising Clarity, Flexibility & Transparency As per the MAS statement, the regulatory sandbox instructions will accomplish: 1.      Better Transparency – The instructions cover examples and details specifying MAS’ expectations, like the criteria for accessing entry into the sandbox; 2.      Increased Flexibility – The instructions cover higher flexibility and making the evaluation criteria easy for businesses keen on entering the sandbox. It also facilitates modifications while experimenting. Conclusion Despite the fact that Singapore lacks fintech-focused regulations, fintech firms are required to comply with the running laws that govern the financial services industry. These comprise ensuring the appropriate licensing, keeping personal data requirements updated, according to the Personal Data Protection Act and complying with AML/CFT notices. It is important to know that fintech is always going through innovations. Singapore lawmakers are always coming up with new ways to secure firms and consumers. Aspirants must always be updated with the latest compliance regulations as this new industry is always on the move. We would love if you get in touch with us to know everything about the Fintech domain in Singapore.

read more

Applying for Singapore Entrepreneur Pass

Are you a foreigner looking to relocate to Singapore to start and run a business? Then the Singapore Entrepreneur Pass or EntrePass is just the thing for you. To be eligible to apply for this work visa, the entrepreneur who intends to come to Singapore to establish a company, must display a paid-up capital of at least S$50,000. This helps entrepreneurs who have a more successful professional record, as compared to documented qualifications. The EntrePass works perfectly for foreign businesspersons who fall short of academic certifications or are not eligible according to the Employment Pass scheme, but have proved their business expertise through booming professional experience. In practice, applying for an EntrePass used to be more difficult than that for an Employment Pass (EP), due to the paid-up capital requirement of S$50,000. However, this requirement has now been removed to attract more qualified applicants worldwide. What Makes You Eligible and Ineligible for the EntrePass? A foreign entrepreneur can apply for the EntrePass if the following conditions are met: 1.      The candidate has or aims to launch a private limited company, registered with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. In case the company has already been registered, it should be less than or equal to 6 months old on the date of application. 2.      The applicant must be a minimum 30% shareholder in the capital of the company.Additional Provisions The applicant is required to meet a minimum of one of the listed requirements, either in the capacity of an innovator, an entrepreneur, or an investor: Innovator ·         The enterprise should be a holder or an intellectual property asset. ·         The company should have had participated in joint research with A*STAR or a university. ·         The company must possess excellent technical or domain expertise that is connected to the intended business. Entrepreneur ·         The financial support of the company must come from a Government-recognized VC or business angel. ·         The company should have active involvement in a Government-supported incubator. ·         The candidate must have a proven track record or network and bright business history of having launched very lucrative enterprises. Investor ·         The candidate must have a good previous experience of business investments and should be keen on expanding a new company or already existent one in Singapore. You can learn more about these requirements here. Businesses Ineligible for the EntrePass Cafés, cafeterias, massage parlors, pubs, night clubs, job placement services and others, do not qualify for the EntrePass. A full account of the businesses that do not qualify for the pass is available on the MOM website. The Application Procedure How to Apply? An applicant or a representative of the applicant is eligible to submit an application for the EntrePass. The MOM lays down the steps listed below to apply for the EntrePass: 1.      An applicant must attach the EntrePass application form with necessary documents and submit the pack. 2.      Once the application has been approved, as a policy, the MOM will issue an approval letter. The applicant is required to register the company (in case not already done so) with ACRA within a month of receiving the letter. 3.      As a rule, the EntrePass should be issued within 6 months of the approval letter. 4.      Once the EntrePass has been issued, the fingerprint and photo registration of the candidate is required. 5.      MOM will send the card to the address indicated in the application. Essential Paperwork The following documents must be attached and submitted along with the application for the EntrePass: 1.      Copy of the individual information page of applicant’s passport; 2.      Previous service testimonies in English; and 3.      A plan of action that mentions the enterpriser’s business strategy, market research, market plan, products or services in the offering, etc. Bear in mind that at the time of applying, if the business is already registered with ACRA, the following must be submitted: 1.      A copy of the company’s recent profile (as can be seen on the ACRA website) How to Renew, Cancel and Replace the EntrePass? EntrePass Renewal The EntrePass that is issued for the first time has a validity of 1+1 years. This means that one year after its issue, the EntrePass must be renewed. If all eligibility requirements for renewal are fulfilled, the validity is extended for one additional year. From then on, all the EntrePass renewals that follow will have a 2-year validity. An EntrePass holder can put forward an application to get his pass renewed, 3 months before it expires. Among the renewal requirements is that the EntrePass holder must retain the initial business plan submitted to the Ministry when applying for the first time. For renewal of the pass, the holder needs to make sure that his business creates employment in Singapore. For more information on the renewal of an EntrePass click here. Cancelling the EntrePass In case an EntrePass needs to be cancelled, it can be done by the pass holder, a company agent or an employment agent. The cancellation should happen and the pass must be returned in a week’s duration after the closure of the business. Replacement of the EntrePass In case of theft, loss or damage to EntrePass, the holder of the pass, or an agent appointed by the company, or an employment agent can submit an application to have the pass replaced, not later than 7 days since the loss. Additionally, in case an EntrePass holder’s card is stolen, the incident must be reported to the police. Notification of Changes If any one or more of the following changes are to be done to an EntrePass, the pass holder must notify the MOM: 1.      Line of business; 2.      Candidate’s personal information, home address, office address; 3.      Salary; 4.      Company name and account info and 5.      Line of work To know more about notifying these changes and the related timeframes visit the MOM website. Family Onboard There are two passes that enable EntrePass holders to call their families to Singapore and be with them; the Dependant’s Pass orthe Long Term Visit Pass. The eligible family members comprise: 1.      Spouse. 2.      Common-law spouse 3.      Unmarried and lawfully adopted children, below 21 years of age 4.      Unmarried differently-abled children, above 21 years of age 5.      Unmarried step-children below 21 years of age 6.      Parents EntrePass holders can get their family members on board in Singapore, once they have successfully renewed their passes. In other words, EntrePass holders are not allowed to get their family members after they apply for the pass the first time. Also, to get a family member to Singapore the EntrePass holder must ensure that he or she meets the total business expense and employment generation conditions as ruled by the MOM. Conclusion An EntrePass is a necessity for a foreign entrepreneur who intends to set up and operate a business in Singapore. Do not forget that the MOM carefully scans all applications, as well as the business plans that are submitted along with them, to check if the submissions conform to the requirements of the Ministry. With our help, your chances of getting the Singapore EntrePass are much higher and free of troubles. Contact us today so that we can evaluate your eligibility and come up with ways that increase your hit rate. This is your chance to live and do business in Asia’s most desired city.

read more

Reinsurance Market in Singapore

About Reinsurance Reinsurance is a contract under which a reinsurer agrees to indemnify a ceding company against all or part of the primary insurance risks underwritten by the ceding company under one or more insurance contracts. Market Trends Singapore is not only Asia’s largest international financial center but also one of Asia’s largest international reinsurance centers. The Singapore insurance market remains very competitive. As of the end of 2016, the market had gross premiums total receipt of about over S$3.97 billion and a total asset worth of about S$11.14 billion. Statistics collected over the seven-year period between 2010 and 2016 indicate a growing market. Total gross premiums and retention ratios have increased year on year, indicating good growth prospects for the market as a whole. In particular, the Singaporean general insurance sector registered a compound annual growth rate of 23.1% from 2010 to 2016 in respect of gross written premiums. Since 2011, statistics show that the offshore insurance market has maintained its retention ratio at about 60% and increased its total assets up to S$22.2 billion. The Singapore reinsurance market remains extremely competitive. Total gross premiums for the reinsurance industry were S$4.9 billion in 2016 and retention ratio has been 69.1%.   Regulatory Framework The Insurance Act (Cap 142) governs insurance and reinsurance activities in Singapore. Regulatory Bodies Insurance and reinsurance activities are regulated by the MAS (Monetary Authority of Singapore), established by the Monetary Authority of Singapore Act (Cap 186). MAS is responsible for the licensing, authorization and supervision of insurance and reinsurance activities.   Authorized Reinsurer Overseas insurers may apply for authorization to carry on life and/or general reinsurance business in Singapore. Authorized Reinsurers: -       Do not have a physical presence in Singapore and provide insurance services from overseas to persons in Singapore. -       Are subject to limited oversight by MAS compared to licensed insurers : Not required to set up and maintain separate insurance funds for policies taken out by persons in Singapore : No need to comply with solvency margin requirements Admission Criteria MAS assesses applications for authorization of reinsurers based on these criteria: -       Domestic and international rankings of the applicant by factors such as premiums and assets -       Past and present credit ratings by international rating agencies (i.e., Standard and Poor's, A.M Best, Moody's and Fitch) -       Track record, financial soundness and reputation of the applicant MAS will consult the applicant's home supervisory authority to check the applicant’s compliance with its home regulations. -       Risk management systems and processes aligning with the size and complexity of the business -       Fitness and propriety of the applicant and all persons having control of the applicant Documents To Be Submitted Along With The Application Form 1) A certified true copy of the license issued by the insurance supervisory authority in the country in which the company is carrying on insurance business 2) A copy of the annual report and financial statements of both the applicant and its ultimate parent company for each of the last three years Processing Time It will take approximately 6 to 8 weeks after submission of complete application to process and approve an application. As each application will be evaluated on a case-by-case basis, processing time depends on the circumstances of each application and the completeness of the information submitted. Annual Fee Every authorized reinsurer shall pay an annual fee of S$10,000 to the Authority before 1st January of each year. License For Reinsurer Applicants need a license to carry on life and/or general reinsurance business in Singapore. Admission Criteria MAS assesses applications for life and/or general reinsurance licenses based on these criteria: -       Same as admission criteria for authorized reinsurer -       Well-developed business strategy and detailed plans reflecting the risk profile of the business Documents To Be Submitted Along With The Application Form 1) A certified true copy of the license issued by the insurance supervisory authority in the country in which the company is carrying on insurance business 2) A certified true copy of the letter from the insurance supervisory authority in the country granting the company to establish insurance operations in Singapore, if such approval is required. (If approval is not required, a statement to this effect should be provided.) 3) A copy of the annual report and financial statements of both the applicant and its ultimate parent company for each of the last three years 4) A copy of the feasibility study conducted in respect of the proposed Singapore operations (including financial projections for the proposed Singapore operations). Taxation Of Insurance And Reinsurance Providers Under the Income Tax Act, all companies are generally taxed at the rate of 17% on their chargeable income. However, some insurers may be subject to different tax rates depending on the type of insurance business carried on.   ∙ Life Insurance Business Insurers carrying on life insurance business are subject to a tax rate of 10% on life insurance surplus of any life insurance fund apportioned to policyholders for each year of assessment.   ∙ Marine Hull and Liability Insurance/Reinsurance Business Tax is payable at the rate of 5% on chargeable income derived by an approved marine hull and liability insurer for each year of assessment.   ∙ Offshore General Insurance/Reinsurance Business An approved insurer carrying on offshore life insurance business and insuring/reinsuring offshore risks will be taxed at the rate of 10% on chargeable income for each year of assessment.   ∙ Captive Insurers Captive insurers are exempt from tax on any underwriting income derived from insuring offshore risks.   Singapore Insurance Market Trends     Source: MAS (Monetary Authority of Singapore) Life insurance valuation results for the year ended 31st December 2018 -       Professional Reinsurer Source: MAS (Monetary Authority of Singapore) If you have any questions about Singapore company incorporation and investment in Singapore, please contact us via Contact Us page. We will provide you with a variety of solutions for efficient business operations as well as practical advice on legal requirements.

read more
Explore All Insights

Thank you for your interest in Pearson.

TYPE
Incorporation Bank Account Tax Accounting Visa Others