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Yes, an Employment Pass (EP) holder can be involved in a business in Singapore—but with clear restrictions.
Under the rules of the Ministry of Manpower (MOM), an EP holder is only allowed to work for the employer who sponsors their EP. They cannot actively run or manage another business unless they obtain proper approval.
An EP holder may:
- Be a shareholder or investor in a company
- Be listed as a director, but must remain non-active unless approved
However, to operate, manage, or be employed by another company, the EP holder must obtain a valid work pass (e.g. a new EP under that company or approval from MOM).
In short, passive involvement is allowed, but active business operations without approval are not permitted.
However, can EP holders be registered as directors in another company apart from the company the EP is approved for?
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- Yes, but only if the EP holder has obtained a Letter of Consent (LOC) from MOM.
- MOM recognises that secondary directorship positions in related companies, e.g. subsidiary, may be critical to the EP holder’s job role. As such, MOM would generally allow EP holders to take up such secondary roles by granting an additional “Letter of Consent”.
If the secondary directorship position is in an unrelated company, e.g. fund entities, MOM may still grant the LOC if it is relevant to the EP holder’s primary occupation.