How to apply for a Dependent Pass (DP) with Sleek
7 minute read
Singapore is one of the best countries in the world to begin your business venture.
However, there are some requirements to fulfil before you get started. In this article, we’ll describe the exact process of applying for a Dependent Pass (DP) with Sleek. Let’s get started.
Overview:
- What is the DP?
- What are the documents required?
- How long can the DP be granted for?
- How can someone on dependant’s pass set up their business in Singapore?
- Letter of Consent for DP Holders who are Business Owners
- How much does a DP & LOC cost?
- What does the process look like?
- Considerations for LOC application
What is the DP?
The Dependent Pass (DP) is a relocation visa that can be granted to the family member of an EP holder. The EP holder needs to be earning at least S$6,000/ per month to be eligible for dependent privileges.
Who can apply?
- Legally married spouses
- Unmarried children under 21 years of age
- Unmarried, legally adopted children under 21 years
What are the documents required?
You will need these documents to apply for a Dependant’s Pass (DP):
- Copy of the personal particulars page of the candidate’s passport.
- For children who share a passport with their parent, you must also submit the parent’s personal particulars page.
- For the legally married spouse, a copy of the marriage certificate.
- For unmarried children under 21 years – Copy of the official birth certificate stating the parent’s names.
- For unmarried, legally adopted children under 21 years – Copy of the adoption order or other relevant documents.
- If the foreign-born child is below 12 years, the parents must submit a Verification of Vaccination Requirement (VR) issued by the Health Promotion Board (HPB) before the DP application.
- However, we can submit the DP application without applying for VR if the DP holder is (i) Born in Singapore OR (ii) Currently holding onto an active DP/LTVP/Student card OR (iii) Recently holding onto an active DP within the past 1 month (DP application to be submitted within one month from the date of last DP cancellation).
If any of the above documents are not in English, a certified translated copy must be provided. Applicants may choose to work with Woodsburg for such translations. Contact Wordsburg at [email protected] with a Sleek referral mention.
How long can the DP be granted for?
The duration granted for the DP can be up to two years and is tied to the main work pass. Actual duration granted is still subject to MOM.
Are DP holders authorized to work in Singapore?
DP holders are not allowed to work in Singapore. For DP holders who wish to undertake employment, the employing company will need to apply for a work pass, subject to prevailing eligibility criteria.
How can someone on dependant’s pass set up their business in Singapore?
Setting up your business on a DP in Singapore will typically involve two steps:
- Incorporating your company and opening your corporate bank account AND;
- Applying for a Letter of Consent (LOC) or applying for an Employment Pass Visa (EP).
When you set up a Private Limited Company (Pte Ltd), this means that you are creating a separate legal entity from yourself. This limits your liability as an individual, which means that if your company turns to custard, any debts or losses you incur while running your business will not impact any personal assets that you may own (for example, your house).
Here’s a quick rundown of a private limited company in Singapore.
Main features of a Pte Ltd
- Has its own legal identity that is separate from its shareholders (owners) and directors.
- Allowed to bring in new shareholders and investors as you grow.
- Easy to transfer ownership if you sell the business in the future.
- Shareholders are not directly liable for debts and losses.
- Company profits are taxed at corporate tax rates generally lower than personal taxes.
- Eligible for local tax exemptions and incentives.
Letter of Consent for DP Holders who are Business Owners
If the DP holder would like to start a business in Singapore, they may apply for a Letter of Consent (LOC) as a business owner.
To be eligible to apply for an LOC, the DP holder needs 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.
For LOC as Business Owner:
- There is no minimum salary requirement; some business owners may choose to declare a nominal sum — e.g. a minimum monthly salary of S$1,000.
- To be eligible for a renewal of the LOC, you will also need to hire at least one local Singaporean citizen or permanent resident who:
- Earns at least S$1,400/ month AND
- Has received CPF contributions for at least 3 consecutive months.
- Do note that to open a business in Singapore, you must have:
- At least one Shareholder of any nationality (individual or corporate)
- At least one Local Director (Singaporean Citizen/ PR residing in Singapore)
- A local Company Secretary
- A locally registered business address in Singapore.
For LOC:
- Your initial application can be granted for one year from issue date or up to the expiry date of DP (whichever is shorter)
- Renewals are up to the date of expiry of the DP
How much does a DP & LOC cost?
These are the relevant costs when applying for an DP & LOC, and their respective estimated costs:
- Incorporation: one-off fee of S$350 (inclusive of $315 government fees)
- Corporate Secretary: from S$300/year (calculate your all-inclusive fee here)
- Registered Local Address & Digital Mailroom: S$300/year
- Nominee Local Director: S$500/3 months AND mandatory subscription to one tax and accounting packages (from S$900/financial year) OR provide a S$2,000 refundable security deposit.
- Accounting & Tax plans: from S$900/ financial year. Pricing is based on your company’s average monthly expenses over a financial year period. All plans are inclusive of bookkeeping, accounting software and tax support.
- LOC Application: S$450 per application, inclusive of one free appeal and 50% refund for rejected applications.
What does the process look like?
Step 1. Sign up with Sleek
Create a free Sleek account and follow the easy steps to tell us about your company. Next, select the services you will need from us including our all-inclusive Corporate Secretary Package, Local Registered Address, and/or Nominee Director services.
Step 2. Let’s get to know each other
Once you’re set on which services you’ll need, it’s time for us to learn more about you. Complete Sleek’s Know-Your-Client (KYC) and DP questionnaire.
As part of our KYC process, some documents will be requested for each shareholder and director. All documents can be directly uploaded to our Sleek Platform. For the full list of documents, you can find the list here.
Step 3. It’s time to fill up your application
Here’s a list of the necessary documents that will be needed for your application. These documents can be uploaded onto the Sleek platform.
For DP:
- Passport information page
- Highest education graduation certificate
- Marriage Certificate of spouse
- Birth Certificate of child
- Birth Certificate of parent
- Adoption papers (if applicable)
- Custody papers (if applicable)
- Medical papers (if applicable)
- Current/ Previous EP/PEP/DP/LTVP pass (if any)
- NIR Vaccination approval letter issued by HPB (if applicable)
For LOC, a copy of:
- Passport information page
- Highest education graduation certificate
- Existing dependent pass (front & back)
Step 4: Begin company incorporation process!
You may choose to start incorporating your company at this point of time. From start to finish, incorporation with Sleek typically takes 3 to 5 working days and can be done entirely online.
Do note that to open a business in Singapore, you must have:
- At least one Shareholder of any nationality (individual or corporate)
- At least one Local Director (Singaporean Citizen/ PR residing in Singapore)
- A local Company Secretary
- A locally registered business address in Singapore.
Step 5: Open a business account
Once incorporated, you can arrange to open a business bank account.
We highly recommend opening with the Sleek Business Account that is free for all Sleek clients. With Sleek Business Account, you can enjoy:
- No set up or annual fee.
- No minimum balance requirement.
- Simple and fast onboarding process.
- Automated bookkeeping.
Sign up for your Sleek Business Account here. Do note that your business account can only be opened after successful incorporation.
Step 6: Final steps
Once your company is registered, the funds to support the LOC application will also need to be transferred into the company’s corporate account. Our Corporate Secretary team can then help to increase the paid up capital for the company with ACRA for the LOC application.
Step 7: Leave it to us!
It’s time for your application to go through.
For new company, the Unique Entity Number (UEN) will need to be updated in MOM’s system for us to prepare the LOC application. This is in the form of a manual request submitted to MOM. We will submit a copy of the company’s business profile for the MOM to update their records. This will typically take 7 working days upon submission of the request.
At the same time, we will also submit a request to the MOM for the DP holder to apply LOC as a business owner first. This is a MOM’s requirement and usually takes one week. We can only draft the LOC application once both requests are approved. Thereafter, the LOC application can be submitted to MOM.
MOM takes 3 weeks to process LOC applications. If further information is required, the processing time may take longer. In total, the average processing time for the LOC is around 5 weeks.
Please note that you will not be able to work for your company until the LOC is approved.
Considerations for LOC application
To increase the chances of your application being successful, we’ve highlighted some tips for your consideration.
Incorporation process
During incorporation, you must be listed as both director and shareholder to meet the LOC eligibility criteria.
However, you will not be considered as a local director. As such, most clients will follow either of the two scenarios:
- Take our local Nominee Director service OR
- Have a SG citizen or PR business partner to act as director of the company.
Once your LOC is approved, you may then act as the sole resident director of the company.
Approval time
Do note that the outcome of your application and the duration granted will be subjected to MOM’s discretion. Based on our experience, the duration granted can be up to 12 months or until the expiry date of your DP, whichever is earlier.
Proof of funds
It would be good for new companies to show evidence of funds to cover one year of salary as well as any other miscellaneous expenses for the company.
This can be reflected as the paid up capital in the company. For these reasons, you may wish to open a corporate bank account to show sufficient funds for the company to pay the LOC applicant.
For more commonly asked questions on the DP & LOC visa, you may refer to our FAQ resource here.
Reach out to us
If you have any questions about the requirements, processes or costs, feel free to reach out to our friendly team at Sleek.
We’ll be happy to answer any of your important queries, so that you can get your business up and running in no time.
