Achi Biz Guides

Letter Of Consent (LOC) For Business Owners

Letter of Consent (LOC) for Dependant’s Pass (DP) Holders who are Business Owners

You can apply for a Letter of Consent to work in Singapore if you are an eligible Dependant’s Pass holder who wishes to operate a business. Find out the eligibility requirements and how to apply.

Eligibility for LOC for DP holders who are business owners

Dependant’s Pass (DP) holders who wish to operate a business in Singapore can apply for a Letter of Consent (LOC)

Who is Eligible

To be eligible to apply for an LOC, you need to be one of the following types of business owner:

  • The sole proprietor of an ACRA-registered business.
  • A partner of an ACRA-registered business.
  • A company director with at least 30% shareholding in an ACRA-registered business.

To be eligible for a renewal of the LOC, you will also need to hire at least one Singaporean / Permanent Resident who earns at least the prevailing Local Qualifying Salary and receives CPF contributions for at least 3 months.

Existing DP LOC holders who are business owners

What are the criteria for existing DP LOC holders who are business owners?

DP holders must meet the criteria to be eligible for LOC renewal, or obtain an applicable work pass to continue working in Singapore

Duration of the Pass

Apply for an LOC
Duration of the pass
First-time candidates
Whichever is shorter:
  • One year from issue date
  • Up to the expiry date of Dependant’s Pass
Subsequent renewals
  • Up to the date expiry of Dependant’s Pass
The LOC stops being valid when:
  • The Dependant’s Pass is cancelled or expires.
  • The business is no longer active. You still need to cancel the LOC.

Submit an Application

Before applying, check that your Dependant’s Pass is valid for at least 3 months.

If it is not, you need to renew your Dependant’s Pass.

Processing time: Within 4 weeks for most cases.

What are the Pre-approval Requirements unless you are exempted?

Submit an online request to apply for an LOC as the requirement of pre-approval unless you are exempted.

How much it costs
Free
Who can apply LOC
Your Business or the authorise Employment Agency
How long it takes
Within 1 week
Related eServices
https://form.gov.sg/#!/607d4e7d0eb85d00111e61af
Only upon obtaining the pre-approval unless you are exempted, you can proceed to apply for LOC. DP holder of certain main pass holders is exempted from pre-approval requirements.

LOC Application after pre-approval

How to Apply after getting pre-approval of LOC?

You can apply for a Letter of Consent (LOC) to work in Singapore if you are an eligible Dependant’s Pass holder who wishes to operate a business with pre-approval.

How much it costs
  • Free
Who can apply LOC
  • Your Business or the authorise Employment Agency
Related eServices
  • EP Online
How long it takes
  • Within 3 weeks for most cases.
  • It may take longer if additional information is required.
After approval
  • Log in to EP Online and print the LOC

How to Renew, Cancel or replace the LOC for Business Owners?

Renew, cancel or replace a Letter of Consent for Dependant’s Pass holders who are business owners

You can cancel a Letter of Consent (LOC) or renew it before it expires. You can also replace it if you have lost your LOC.

How to Renew an LOC?

To be eligible for a renewal of the LOC, you will also need to hire at least one Singaporean / Permanent Resident who earns at least the prevailing Local Qualifying Salary and receives CPF contributions for at least 3 months.

How much it costs
  • Free
Who can renew
  • Your Business or the authorise Employment Agency
How long it takes
  • Within 3 weeks for most cases.
What is required
  • Before applying, ensure your Dependant’s Pass is valid for at least 3 months.
  • If it is not, you will need to renew your Dependant’s Pass.
When to renew
  • You can renew your LOC when you renew your Dependant’s Pass.
  • You can renew up to 6 months before your LOC expires.
How to renew
  • Log in to EP Online to renew.

How to Replace an LOC?

If you have lost the LOC, you need to report the loss and request for a replacement.

How to Cancel an LOC?

When to cancel
  • Within 1 week after the business is no longer active.
  • You can submit a cancellation request up to 14 days in advance.

Eg:
  • If you want the pass to be cancelled on 15 February, you can submit the advance cancellation request from 1 February.
Who can cancel
  • Your Business or the authorised Employment Agency.
How long it takes
  • Immediate, unless you are making an advance request.
How to cancel
  • Log in to myMOM Portal to cancel your LOC.

FAQ on LOC for DP Holders who wish to run the Business / company in Singapore

Can I register a business or company while holding a DP (Dependant’s Pass)?

Yes. A Dependant’s Pass (DP) holder may register or participate in an ACRA-registered business entity in Singapore, subject to the applicable ACRA requirements for foreigners/FIN holders and the requirements of the particular business structure.

Holding a DP does not by itself mean that the DP holder is equivalent to a Singapore Citizen or Permanent Resident for ACRA’s local residency requirements. The applicable ACRA and MOM requirements must be satisfied.

A DP holder who wishes to operate the business must obtain the applicable Letter of Consent (LOC) from the Ministry of Manpower (MOM) before commencing work or operating the business. MOM expressly states that a DP holder can only begin operating the business after the LOC has been approved.

What type of entity can a DP holder register?

Subject to the applicable ACRA and MOM requirements, a DP holder may establish or participate in business structures such as:

The registration requirements differ according to the business structure. The required locally resident position holder, where applicable, must therefore be considered separately for each entity type.

Can a DP holder register a Pte. Ltd. company?

Yes. A DP holder may establish and own shares in a Singapore Pte. Ltd. company, subject to ACRA and MOM requirements.

At incorporation, the company must satisfy ACRA’s requirement to have at least one director who is ordinarily resident in Singapore. Where the DP holder does not satisfy the applicable local-director requirement at that stage, an eligible locally resident director must be appointed.

For MOM’s business-owner LOC, the DP holder must be a company director with at least 30% shareholding in the ACRA-registered company. The DP holder must obtain MOM’s LOC before operating or working in the business.

After LOC approval and completion of the necessary ACRA appointments, any existing local resident director should resign only if the company will continue to satisfy ACRA’s statutory requirement for at least one ordinarily resident director.

Can I be the owner of a Sole Proprietorship while holding a DP?

A DP holder may be registered as the owner of a sole proprietorship subject to ACRA’s requirements applicable to FIN holders/foreigners and MOM’s requirements.

A DP holder should not be described simply as being equivalent to a Singapore Citizen or Permanent Resident merely because he or she holds a DP.

For the purpose of MOM’s business-owner LOC, being a sole proprietor is one of the qualifying business-owner categories. The DP holder must obtain the LOC before operating the sole proprietorship.

Can I be a Partner of a Partnership while holding a DP?

Yes, subject to ACRA’s applicable registration and residency requirements and MOM’s requirements.

Being a partner of an ACRA-registered business is one of MOM’s qualifying categories for a DP business-owner LOC. However, the DP holder must obtain the LOC before working in or operating the partnership.

Can a DP holder be one of the Partners of a Partnership?

Yes. A DP holder may be a partner, subject to the applicable ACRA and MOM requirements.

Where the DP holder intends to actively operate or work in the partnership, the appropriate MOM business-owner LOC must first be obtained. Holding a DP alone does not authorise the holder to work in or operate the business.

Can I be the General Partner of a Limited Partnership (LP) while holding a DP?

A DP holder may participate in an LP subject to the applicable ACRA requirements for the LP and the individual’s immigration/work-pass status.

The LP must continue to satisfy all applicable ACRA requirements concerning its partners and local manager, where required. If the DP holder intends to actively operate the business, the applicable MOM requirements, including LOC eligibility, must also be satisfied.

Can I be the Limited Partner of a Limited Partnership (LP) while holding a DP?

A DP holder may be registered as a limited partner subject to the applicable ACRA requirements.

However, the role of a limited partner must be distinguished from actively operating or managing the business. Where the DP holder intends to work in or operate the business, MOM’s applicable work-authorisation requirements must be separately satisfied.

Can I be a Partner of a Limited Liability Partnership (LLP) while holding a DP?

A DP holder may be a partner of an LLP subject to ACRA and MOM requirements.

An LLP must have at least one manager who is ordinarily resident in Singapore. The LLP must continue satisfying this requirement notwithstanding the DP holder’s participation in the LLP.

If the DP holder intends to actively operate the business, the applicable MOM LOC requirements must also be satisfied.

Can I be a Director of a Private Limited (Pte. Ltd.) Company while holding a DP?

A DP holder may become a director of a Pte. Ltd. company subject to ACRA and MOM requirements.

For a DP holder seeking MOM’s business-owner LOC, MOM requires the DP holder to be a company director with at least 30% shareholding in the ACRA-registered company.

The company must separately satisfy ACRA’s requirement for at least one ordinarily resident director. The DP holder must not commence operating or working in the business until the LOC has been approved.

Can I be a Shareholder of a Private Limited (Pte. Ltd.) Company while holding a DP?

Yes. A DP holder may hold shares in a Singapore Pte. Ltd. company, subject to applicable laws and requirements.

However, share ownership and permission to work in or operate the company are separate matters. Merely holding shares does not by itself authorise a DP holder to work for or operate the company.

For the MOM business-owner LOC route as a company owner, the DP holder must be a director with at least 30% shareholding.

Can I be the Sole Director of a Private Limited (Pte. Ltd.) Company while holding a DP?

Not automatically merely because the individual holds a DP.

Every Singapore company must satisfy ACRA’s requirement for at least one director who is ordinarily resident in Singapore. A DP holder should not be treated as automatically satisfying this requirement merely because he or she resides in Singapore on a Dependant’s Pass. The applicable ACRA and MOM requirements must first be satisfied.

Accordingly, where necessary, the company should initially appoint an eligible locally resident director. After the DP holder obtains the appropriate LOC and is properly appointed, the existing local resident director may resign only where the company will continue to meet ACRA’s local-director requirement.

Can I be the Sole Shareholder of a Private Limited (Pte. Ltd.) Company while holding a DP?

Yes. A DP holder may generally be the sole shareholder of a Singapore Pte. Ltd. company.

There is an important distinction between being the sole shareholder and being the sole director. Foreign ownership of the shares does not remove the company’s obligation to maintain at least one director who satisfies ACRA’s local residency requirement.

If the DP holder intends to operate the company under MOM’s business-owner LOC route, the DP holder must satisfy MOM’s eligibility requirements, including being a director with at least 30% shareholding, and must obtain the LOC before commencing work or operating the company.

DP holder of which main pass holder is exempted from the pre-approval requirement before applying for an LOC?

A spouse holding a Dependant’s Pass (DP) under an Overseas Networks & Expertise Pass (ONE Pass) holder does not need to go through the separate pre-approval/request stage that generally applies to other eligible DP holders seeking a business-owner LOC.

The eligible spouse of a ONE Pass holder may apply directly for a Letter of Consent (LOC) to work or operate a business in Singapore. The application may be submitted by the candidate or an appointed Employment Agency where the candidate wishes to operate a business.

MOM states that the LOC is processed within 4 weeks for most cases, although some cases may take longer if additional information is required. The DP must have at least 3 months’ validity when applying.

For comparison, other eligible DP business owners generally need to first submit a request to apply for an LOC, receive approval for that request, and only then submit the LOC application.

Note: This ONE Pass arrangement applies specifically to the spouse of the ONE Pass holder. Other dependants generally need an appropriate work pass to work in Singapore.

Where can I find any guide for business entities in Singapore?

Who the DP holders were allowed to work before new rule w.e.f. 01-May-2021?

Which type of DP holders were allowed to work before new rule w.e.f. 01-May-2021?

  • Dependant’s Pass (DP) holders who were dependants of Employment Pass (EP), EntrePass or Personalised Employment Pass (PEP) holders were allowed to apply for a Letter of Consent (LOC) to work in Singapore till 30-Apr-2021.

Which type of DP holders who are the business owners are allowed to apply LOC w.e.f. 01-May-2021?

Who are allowed to apply LOC w.e.f. 01-May-2021?

Who are eligible for Letter Of Consent (LOC) with Dependant’s Pass (DP)?

  • Dependant’s Pass (DP) holders who are dependants of Employment Pass (EP), EntrePass or Personalised Employment Pass (PEP) holders are allowed to apply for a Letter of Consent (LOC) to work in Singapore w.e.f. 01-May-2021 provided they meet specified criteria.

Can a Dependant’s Pass (DP) holder of S Pass be eligible to apply for LOC?

Is a DP holder of S Pass allowed to apply for LOC or run the business?

Can DP of S Pass apply LOC?

  • No.
  • All DP holders who wish to work during their stay in Singapore will need an applicable work pass (such as an Employment Pass, S Pass or Work Permit) instead of an LOC, unless they are business owners who meet specified criteria.
  • Only DP holders of Employment Pass (EP), EntrePass or Personalised Employment Pass (PEP) holders are allowed to apply for a Letter of Consent (LOC) who meet specified criteria.

What are the criteria for renewal of LOC for the DP holders who are the business owners?

Renewal criteria for LOC for DP holders?

  • To be eligible for a renewal of the LOC, you will also need to hire at least one Singaporean / Permanent Resident who earns at least the prevailing Local Qualifying Salary and receives CPF contributions for at least 3 months.

How long is the LOC issued or valid?

What is the validity of LOC?

  • The first time LOC is issued only up to 12 months or till the expiry date of your DP whichever is shorter.
  • The subsequent renewal of LOC is issued till the expiry date of your Dependant’s Pass (DP).

How long LOC is renewed?

What is the renewal period of LOC?

  • The renewal of LOC is issued till the expiry date of your Dependant’s Pass (DP).

How long before LOC can be renewed?

When can I renew LOC before expiry?

  • You can renew your LOC when you renew your Dependant’s Pass (DP). You can renew up to 6 months before your LOC expires.

Does the approval of request to apply LOC guarantee the successful outcome?

Is outcome of LOC guaranteed with approval of request?

  • No.
  • Your initial approval of request to apply for LOC does not guarantee the 100% successful outcome as your application is still subject to further assessment by the Ministry Of Manpower (MOM).

Do I need to furnish any supporting documents when applying for LOC?

Does MOM require supporting documents to apply for LOC?

  • It depends on the assessment by the Ministry Of Manpower (MOM).
  • Your LOC application is subject to further queries or requirement of any supporting documents.

Can I access MOM portal as a DP holder to apply for my LOC?

Can DP holder access MOM portal?

  • You can submit the initial request to apply for LOC using the online Form at MOM. However, you are not allowed to apply LOC using myMOM portal.
  • You need to engage any licensed Employment Agency (EA) to assist with applying of your LOC.

Can I cancel my LOC during the validity?

  • Yes, whenever you wish to, when you intend to cease your business or withdraw your ownership of the business you can cancel your LOC.

When the LOC stops being valid?

  • When the Dependant’s Pass (DP) is cancelled or expires.
  • When the business is no longer active. You still need to cancel the LOC.

What is the minimum period of validity of my DP to apply for LOC?

  • Before applying, check that your Dependant’s Pass (DP) is valid for at least 3 months. If it is not, you need to renew your Dependant’s Pass first and then you may wish to proceed to apply for LOC.

ACHI is one of the licensed Employment Agencies in Singapore. We will assist your work pass related applications and appeals at our level best with the regulatory authority Ministry Of Manpower (MOM) for successful outcome.

Please refer to our GUIDES for more information, SERVICES to meet your requirements or CONTACT us if you wish to avail these or many other services.