Moving to a new country with your spouse is an exciting adventure, but you may have aspirations beyond your role as a spouse. If you’re on a Dependent’s Pass (DP) in Singapore and are eager to pursue your own career or start a business, this guide is for you. While working on a DP has some restrictions, it’s certainly not impossible. We’ll walk you through the process of securing employment or establishing your own business while on a DP, so you can make the most of your time in Singapore.
Whether you’re a seasoned professional, a budding entrepreneur, or simply exploring your options, understanding the regulations and requirements is key. We’ll explain the different work pass options available to you, including the Letter of Consent (LOC), and provide a clear roadmap to help you with the application process. From setting up your own company to renewing your work pass, we’ll equip you with the knowledge you need to unlock your professional potential in Singapore. Let’s get started!
Can you work in Singapore on a Dependant’s Pass?
The general rule: No work without a work pass.
It’s important to know that as a DP holder, you generally cannot work in Singapore without a valid work pass. This means that simply having a DP tied to your spouse’s Employment Pass or other qualifying pass does not automatically grant you the right to work. Engaging in any form of employment without the necessary authorisation can lead to penalties, including fines, imprisonment, and even being barred from future entry into Singapore.
What pass can you as a DP holder apply for to work in Singapore
S/N | Scenario | Pass that the Main Pass is holding | Pass to apply for? |
1 | set up and operate their own business | EP | LOC |
2 | Intend to be employed by a company as an employee | EP | Work Permit, S Pass or EP |
3 | Intend to be employed by a company as an employee | ONE Pass | LOC |
4 | are working for an overseas company (from home) with no local presence | EP | Exempted from a work pass subjected on the below conditions:
|
5 | are volunteering | EP | Exempted from a work pass subjected on the below conditions:
|
How to apply for an LOC as a DP business owner?
Now, let’s delve into the process of obtaining a Letter of Consent (LOC) to make your entrepreneurial dreams a reality. Here’s a step-by-step guide to help you navigate the application procedure:
Step 1:
Before applying for an LOC, you (as the DP holder) will first need to incorporate a business with ACRA. If you need assistance to incorporate the business, you can engage a corporate secretarial company like Sleek for assistance. To be eligible for an LOC, the DP holder has to set-up one of the below company types.
- 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.
Step 2:
After the business is incorporated, the next step is to engage an Employment Agency like Sleek to assist with the LOC application process. The DP holder is unlikely to be able to submit the LOC application to MOM directly, as he/she does not have a valid work pass, and MOM does not grant work pass access to foreigners without a valid work pass with the company.
Step 3:
Once the DP holder has engaged an Employment Agency to assist with the LOC application, the agent will assist to
- Submit a request to MOM for permission to apply for an LOC (Processing time 1 week)
- For recently incorporated business, to submit a request to MOM to create the company profile in their system (Processing time 2 weeks)
- For businesses which were incorporated before the current year, to update MOM on the latest 3 years company turnover first.
Step 4 :
The agent will submit the LOC application to MOM and keep you posted on the LOC application outcome. MOM generally will approve new LOC applications for 1 year or up to the DP expiry date whichever is earlier.
Step 5
Once you have obtained the LOC, you will be able to operate the business.
What are the requirements to renew the LOC?
To be eligible for an LOC renewal, you will need to meet the following:
1) A valid DP of at least 3 months or more
2) A “live” business.
3) Your business will need to hire at least one Singaporean / Permanent Resident who earns at least the prevailing Local Qualifying Salary (at $1600 currently) and receives CPF contributions for at least 3 months right before submission of the LOC renewal application.
Common pitfalls to avoid when obtaining or renewing LOC
While the process of obtaining or renewing an LOC might seem straightforward, there are some common mistakes that can trip you up and lead to delays or even rejections. Let’s take a look at these potential pitfalls and how you can steer clear of them:
- Incorrect CPF Contributions for Your Local Employee: Ensuring accurate and timely CPF contributions for your Singaporean or Permanent Resident employee is crucial. Any discrepancies or late payments can jeopardise your LOC application or renewal. Solution: Use a reliable payroll service or consult with an expert to ensure accurate CPF calculations and timely payments.
- Hiring an Employee Who Works for More Than Two Employers: Your local employee should not be concurrently employed by more than two companies. Solution: Verify your employee’s employment status before hiring them to ensure they meet this requirement.
- Hiring a Local Employee at the Wrong Time: You need to have employed a Singaporean or Permanent Resident for at least three months before submitting your LOC renewal application. Solution: Plan your hiring process in advance to ensure you meet this timeline.
- Incorrect Documentation: Submitting incomplete or inaccurate documents is a common reason for delays and rejections. Solution: Double-check all your paperwork and ensure it’s complete, accurate, and up-to-date before submission.
- Failing to Renew Your DP First: Your Dependant’s Pass needs to be valid for at least three months at the time of your LOC application or renewal. Solution: Keep track of your DP expiry date and renew it well in advance.
- Failing to Renew Your Business Registration with ACRA: Ensure your business registration with ACRA is current. Solution: Mark your business registration renewal date on your calendar and renew it promptly.
By being mindful of these common pitfalls and taking proactive steps to avoid them, you can ensure a smooth and successful LOC application or renewal process.
Don’t risk your LOC renewal – partner with Sleek!
Renewing your Letter of Consent (LOC) is crucial for continuing your business operations in Singapore. Avoid the stress and potential pitfalls of navigating the renewal process alone. Sleek offers expert assistance with LOC renewals, ensuring accurate documentation, timely submissions, and compliance with all regulations.
Our comprehensive payroll and CPF services guarantee accurate contributions and adherence to legal requirements, minimizing the risk of rejection. Partner with Sleek for a hassle-free renewal process and protect your business from unnecessary delays, inconveniences, and financial losses.
Contact us today for a smooth and efficient LOC renewal experience!
Conclusion
This guide hopes to empower individuals to pursue professional aspirations in Singapore while on a Dependant’s Pass. While there are regulations to navigate, working in Singapore as a DP holder is entirely achievable with the right knowledge and approach. Whether individuals choose to establish a business with an LOC or explore other work pass options, the guide encourages them to seize the opportunity to contribute skills and talents to this dynamic economy. With careful planning and perhaps the assistance of a trusted partner like Sleek, DP holders in Singapore can unlock full potential and make the most of their time. Good luck!
FAQs about spouses on DP who want to work in Singapore
Can I work in Singapore on a Dependant's Pass?
This is the most common question DP holders have. The simple answer is, generally no, you cannot work in Singapore solely on a Dependant’s Pass. You will need to obtain a valid work pass to be eligible for employment. However, there are a couple of exceptions:
- Working remotely for an overseas company with no local presence: You can work from home for a company based overseas if they have no presence in Singapore, you don’t meet clients in Singapore, and you don’t offer any services to clients in Singapore.
- Volunteering: You can volunteer for charitable purposes as long as you receive no payment for your services.
What are my options for working in Singapore as a DP holder?
If you want to work in Singapore, you have a few options:
- Apply for a Letter of Consent (LOC): This is a popular option for DP holders who want to start their own business in Singapore.
- Apply for a different work pass: Depending on your qualifications and the type of work you want to do, you may be eligible for an Employment Pass (EP), S Pass, or Work Permit.
How do I apply for an LOC?
The LOC application process involves several steps:
- Incorporate your business with ACRA. You must be a sole proprietor, partner, or company director with at least 30% shareholding in an ACRA-registered business.
- Engage an Employment Agency. An Employment Agency can help you with the LOC application process.
- Submit a request to MOM for permission to apply for an LOC.
- Submit the LOC application to MOM.
- Wait for the LOC application outcome.
What are the requirements for renewing my LOC?
To renew your LOC, you must meet the following requirements:
- Have a valid DP with at least 3 months of validity remaining.
- Have a “live” business that is actively operating.
- Have hired at least one Singaporean/Permanent Resident employee earning at least the Local Qualifying Salary and receiving CPF contributions for at least 3 months before the renewal application.
Where can I find more information about working in Singapore on a DP?
You can find more information on the Ministry of Manpower (MOM) website. You can also consult with an Employment Agency or immigration specialist for guidance.
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