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Achi Biz > Guides > Human Resource Guide > Employment Agency Guide > Passes For Family Members > Letter Of Consent (LOC) For Business Owners

Letter Of Consent (LOC) For Business Owners

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A colourful frame containing the infographic of roadmap for LOC for DP holdersLetter 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.

 

A business woman for LOC passExisting DP LOC holders who are business owners

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

DP holders operating a business on an existing LOC can continue to do so until it expires, or apply for a one-off renewal of the LOC until 30 April 2022. Thereafter, they 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  • The business is no longer active.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?

Submit an online request to apply for an LOC as the requirement of pre-approval

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, you can proceed to apply for LOC.

 

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 authorised 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 authorised Employment Agency
How long it takes
  • Within 3 weeks for most cases.
What is required
  • 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.
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 business or company while holding DP (Dependant’s Pass)?
What type of entity DP holder can register?
What are the types of entities allowed to register by DP holder?
Can DP holder register a company?

Yes. DP (Dependant’s Pass) holder is considered as the local resident. Hence, the DP holder could register the following entities with ACRA provided they meet the eligibility criteria:

However, the DP holder could start to run and manage the business only with the approval of Letter Of Consent (LOC) under his/her own entity from the Ministry Of Manpower (MOM).
Can I be the owner of Sole Proprietorship while holding DP (Dependant’s Pass)?
  • Yes. DP (Dependant’s Pass) holder is considered as the local resident. Hence, the DP holder could register a Sole Proprietorship with ACRA as the Owner.

However, the DP holder could start to run and manage the Sole Proprietorship only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
Can I be the Partner of Partnership while holding DP (Dependant’s Pass)?
  • Yes. DP (Dependant’s Pass) holder is considered as the local resident. Hence, the DP holder could be registered as one of the Partners of Partnership with ACRA.

However, the DP holder could start to run and manage the Partnership only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
Can DP holder be one of the Partners of Partnership?
  • Yes. DP (Dependant’s Pass) holder is considered as the local resident. Hence, the DP holder could be registered as one of the Partners of Partnership with ACRA.

However, the DP holder could start to run and manage the Partnership only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
Can I be the General Partner of Limited Partnership (LP) while holding DP (Dependant’s Pass)?
  • Yes. DP (Dependant’s Pass) holder is considered as the local resident. Hence, the DP holder could be registered as the General Partner of Limited Partnership (LP) with ACRA.

However, the DP holder could start to run and manage the Limited Partnership (LP) only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
Can I be the Limited Partner of Limited Partnership (LP) while holding DP (Dependant’s Pass)?
  • Yes. DP (Dependant’s Pass) holder is considered as the local resident. Hence, the DP holder could be registered as the Limited Partners of Limited Partnership (LP) with ACRA.

However, the DP holder could start to run and manage the Limited Partnership (LP) only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
Can I be the Partner of Limited Liability Partnership (LLP) while holding DP (Dependant’s Pass)?
  • Yes. DP (Dependant’s Pass) holder is considered as the local resident. Hence, the DP holder could be registered as one of the Partners of Limited Liability Partnership (LLP) with ACRA.

However, the DP holder could start to run and manage the Limited Liability Partnership (LLP) only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
Can I be the Director of Private Limited (Pte Ltd) Company while holding DP (Dependant’s Pass)?
  • Yes. DP (Dependant’s Pass) holder is considered as the local resident. Hence, the DP holder could be registered as the Director of Pte Ltd with ACRA.

However, the DP holder could start to run and manage the Pte Ltd Company only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
Can I be the Shareholder of Private Limited (Pte Ltd) Company while holding DP (Dependant’s Pass)?
  • Yes. DP (Dependant’s Pass) holder could be registered as the Shareholder of Pte Ltd with ACRA.

However, the DP holder could start to run and manage the Pte Ltd Company only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
Can I be the Sole Director of Private Limited (Pte Ltd) Company while holding DP (Dependant’s Pass)?
  • Yes. DP (Dependant’s Pass) holder is considered as the local resident. Hence, the DP holder could be registered as the Sole Director of Pte Ltd with ACRA.

However, the DP holder could start to run and manage the Pte Ltd Company only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
Can I be the Sole Shareholder of Private Limited (Pte Ltd) Company while holding DP (Dependant’s Pass)?
  • Yes. DP (Dependant’s Pass) holder could be registered as the Sole Shareholder of Pte Ltd with ACRA.

However, the DP holder could start to run and manage the Pte Ltd Company only with the approval of Letter Of Consent (LOC) from the Ministry Of Manpower (MOM).
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.

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