- Most Dependant’s Pass (DP) holders can no longer work in Singapore using a Letter of Consent (LOC). Since May 2021, they must apply for their own work pass, such as an Employment Pass or S Pass.
- DP holders who run their own businesses may still qualify for an LOC, but only if the company meets strict eligibility criteria set by the Ministry of Manpower (MOM).
- Renewing an LOC depends on the business creating local employment, including hiring at least one Singapore citizen or PR earning the Local Qualifying Salary with CPF contributions.
- After the restrictions and additional requirements issued by the government in the 2026 budget, many founders are choosing alternative options, such as applying for an Employment Pass through their company instead of relying on the LOC rules.
The letter of consent in Singapore has traditionally been a flexible way to live in the country for Dependant’s Pass (DP) business owners.
If you are a DP holder who has a business registered in Singapore, you may still be eligible for a Letter of Consent. In the past, DP holders could easily work by applying for a Letter of Consent (LOC) from Singapore’s Ministry of Manpower (MOM). But immigration policies have changed in recent years, and today the rules are more specific.
In this guide, we explain:
- How the LOC rules have changed
- When DP business owners can still apply or renew
- The requirements your company must meet
- Alternative work options if you no longer qualify
What is a Letter of Consent (LOC)?
A Letter of Consent (LOC) is an approval issued by Singapore’s Ministry of Manpower (MOM) that allows certain Dependant’s Pass holders to work legally in Singapore.
In the past, the LOC was widely used by DP holders who wanted to work for companies or start businesses.
However, Singapore changed the rules on 1 May 2021. Today:
- DP holders working for employers must apply for their own work pass, such as an Employment Pass or S Pass.
- The LOC is now mainly available to DP holders who operate their own businesses.
Because of this change, the LOC has become more focused on entrepreneurs and company founders, rather than employees.
Can Dependant’s Pass holders still work in Singapore?
Yes, but the process is different today.
If you hold a Dependant’s Pass and want to work, you generally have two options:
Option 1: Apply for your own work pass
Most DP holders now need to apply for a work pass, such as:
- Employment Pass (EP)
- S Pass
- Work Permit (depending on the role)
Most details are available on the MOM Employment Pass page.
Option 2: Apply for a Letter of Consent (business owners only)
DP holders may still qualify for an LOC if they:
- Own or run a registered Singapore business
- Meet MOM’s local employment requirements
This is the path many foreign entrepreneurs consider when running startups, consulting businesses, or small companies in Singapore.
Who can apply for a Letter of Consent as a business owner?
A DP holder may apply for or renew an LOC if they are actively involved in managing a Singapore business.
To qualify, you must generally be:
- A sole proprietor of a registered business
- A partner in a partnership
- A director with at least 30% shareholding in a private limited company
These requirements ensure that the LOC is used by genuine business owners when starting a company rather than by employees.
Requirements for LOC renewal for DP business owners
Renewing a Letter of Consent is not automatic. MOM evaluates whether the business contributes to Singapore’s economy and creates local employment.
Your company must meet the following conditions.
1. Hire at least one local employee
The company must employ at least one Singapore citizen or permanent resident.
This employee must earn the Local Qualifying Salary (LQS). It is always better to check the LQS salary guidelines before hiring a local employee. That way, you are clear about the salary requirements and other employee necessities.
2. CPF contributions must be paid
The company must have paid CPF contributions for the local employee for at least three months.
CPF contributions, which are comprehensively explained on the CPF Board website, confirm that the employment relationship is genuine.
3. The business must be operational
MOM may review whether the business is actively operating, which may include checking:
- Business revenue
- Business activity
- Employment records
- ACRA filings
If the business appears inactive or dormant, the LOC renewal may be rejected.
Legal implications of operating without proper work authorisation in Singapore
Operating a business or working in Singapore without proper authorisation is a serious offence. Whether you need a Letter of Consent (LOC) or another valid work pass, Singapore’s Ministry of Manpower (MOM) requires foreign nationals to obtain approval before carrying out any work activities.
Failing to comply is not just an administrative issue; it can lead to significant legal and financial consequences under Singapore’s Employment of Foreign Manpower Act (EFMA).
Here are some of the risks of operating without valid work authorisation.
Financial penalties
Singapore enforces strict rules on foreign employment. Under the Employment of Foreign Manpower Act, individuals who work without a valid work pass or approval from MOM may face fines of up to S$20,000, imprisonment for up to two years, or both.
Employers or companies that allow unauthorised work may also face similar penalties.
Reputational damage
Operating without proper approval can harm your company’s credibility. In Singapore’s highly regulated business environment, partners, investors, and clients expect businesses to comply with immigration and employment laws.
A violation can damage your reputation and make it harder to build trust with customers, suppliers, and financial institutions.
Business disruption or closure
Authorities may investigate companies suspected of employing individuals without the proper permits. This can lead to enforcement actions that disrupt operations, including restrictions on hiring foreign workers or other compliance measures.
For startups and small businesses, such disruptions can create serious operational and financial challenges.
Impact on future immigration applications
Violating employment regulations can affect future immigration opportunities in Singapore. MOM may take previous violations into account when assessing applications for passes such as:
- Employment Pass
- EntrePass
- Dependant’s Pass renewals
This could make it more difficult to continue living and operating a business in Singapore.
Now, how to renew a letter of consent in Singapore? Let’s help you through that.
How to renew a Letter of Consent in Singapore
If your company meets the requirements above, renewing the LOC is usually straightforward. Here is the typical process.
Step 1: Gather your company and employment details
You may need to provide:
- Company registration details
- Shareholding information
- Proof of local employee salary
CPF contribution records
Step 2: Submit the LOC renewal application
The renewal application is submitted online through MOM’s portal.
Processing times may vary from 1 to 4 weeks, depending on the complexity of the case.
Step 3: Wait for MOM approval
If the application is approved, the LOC will typically be aligned with the validity of your Dependant’s Pass. If the LOC is not approved, you may need to consider alternative work pass options.
LOC renewal changes in Singapore after the 2026 budget
The most significant change for 2026 is the upward adjustment of the Local Qualifying Salary (LQS), which directly impacts the eligibility for Letter of Consent (LOC) renewals.
1. Increase in Local Qualifying Salary (LQS)
To renew an LOC, a business must demonstrate it is creating local employment. The salary threshold for this “local hire” is increasing:
- Current LQS: $1,600 per month
- New LQS (Effective 1 July 2026):$1,800 per month
- Part-time rate: Must be at least $10.50 per hour from 1 July 2026.
2. Strict hiring and CPF requirements
For an LOC renewal application to be successful, the business owner must prove:
- Local employment: The company must employ at least one Singapore Citizen or Permanent Resident (PR).
- Genuine relationship: This local employee must have received CPF contributions for at least three consecutive months prior to the renewal application.
- Impact on quota: Only employees paid at least $1,800 count as 1 full local worker toward workforce counts; those paid between $900 and $1,800 count as 0.5.
3. Shift toward alternative work passes
Because the LOC has become more restrictive and focused strictly on active business owners (directors with less than or equal to 30% shareholding), many founders are moving to other options:
- Employment Pass (EP): Offers more “visa security” and predictable approval criteria for growing businesses.
- EntrePass: Specifically for founders of innovative or venture-backed tech startups.
In addition to the Local Qualifying Salary (LQS) increase to $1,800, there are several other critical updates and existing regulations from the Budget 2026 announcement and Ministry of Manpower (MOM) guidelines that affect Dependant’s Pass (DP) holders.
The changes generally fall into two categories: LOC-specific rules for business owners and broader work pass changes for those who may need to transition away from an LOC.
1. New wage requirements for part-time local hires
If your business fulfills the “local hire” requirement for an LOC renewal by employing a part-time Singaporean or PR, you must adhere to the new hourly rate:
- Current Rate: $9.00 per hour.
- New Rate (Effective 1 July 2026):$10.50 per hour.
- Calculation Rule: For monthly-rated part-timers, MOM calculates the hourly rate by dividing the total monthly gross wage by the total hours worked to ensure it meets this $10.50 minimum.
2. Changes to quota counting rules
The “Local Workforce Count” (LQS), which determines how many foreign workers a company can hire, is becoming stricter. This is relevant if your business grows beyond just yourself:
- Full Count (1.0): The local employee must earn at least $1,800 (up from $1,600).
- Half Count (0.5): The local employee must earn at least $900 but less than $1,800.
- Below $900: The employee will not count toward your local workforce quota at all.
3. Progressive Wage Credit Scheme (PWCS) extension
To help business owners manage the increased costs of these higher salaries, the government has enhanced the Progressive Wage Credit Scheme (PWCS):
- Increased co-funding: The government will now co-fund 30% of the wage increases given to lower-wage workers in 2026 (up from the previously planned 20%).
- Extension: The scheme has been extended through 2028 to provide a longer runway for small businesses to adjust to the $1,800 LQS.
4. Significant changes for DP holders transitioning to work passes
If your business does not meet the “local hire” requirement and you need to transition from an LOC to an Employment Pass (EP) or S Pass, the qualifying bars are rising significantly:
|
Pass Type |
Current Min. Salary |
New Min. Salary (New Apps) |
Effective Date |
|
Employment Pass |
$5,600 |
$6,000 ($6,600 for Financial Services) |
1 Jan 2027 |
|
S Pass |
$3,300 |
$3,600 ($4,000 for Financial Services) |
1 Jan 2027 |
Note: For EP and S Pass renewals, these new salary thresholds will apply from 1 January 2028.
5. Reminder on eligibility & validity
- Shareholding rule: To be eligible for an LOC as a business owner, you must still maintain at least 30% shareholding in the ACRA-registered company.
- DP validity: You must have at least 3 months of validity remaining on your Dependant’s Pass before you can submit an LOC renewal application.
- Automatic cancellation: If the main pass holder’s (e.g., your spouse’s) Employment Pass is cancelled, your DP and LOC are automatically cancelled simultaneously.
Summary of key deadlines
- 1 July 2026: LQS increases to $1,800 (Full-time) and $10.50/hr (Part-time).
- 1 January 2027: Higher qualifying salaries for new EP and S Pass applications.
- 1 January 2028: Higher qualifying salaries for renewing EP and S Pass applications.
Recommended action for business owners:
- Audit payroll by April/May 2026: If your local employee is currently earning below $1,800, you will need to adjust their salary by July 2026 to ensure your LOC renewal remains eligible.
- Verify CPF compliance: Ensure all contributions are made on time, as the three-month history is strictly checked by MOM during renewal.
What if you can’t renew your LOC in Singapore?
Many DP holders today choose other immigration routes if their LOC is not approved.
Here are some common alternatives.
Employment Pass (EP)
The Employment Pass is the most common work visa for professionals and business owners in Singapore.
Many entrepreneurs apply for an EP through their own company. However, read about the employment pass requirements thoroughly before applying for it.
EntrePass
The EntrePass is designed for founders launching innovative businesses in Singapore.
It is often suitable for:
- Tech startups
- Venture-backed companies
- High-growth business models
Becoming a local director
If you decide to step away from the LOC route, you may still remain involved in your company while another director holds the work pass.
This structure is sometimes used by foreign founders who want to keep their businesses operating in Singapore.
Why do many DP entrepreneurs choose the Employment Pass today
Because the LOC rules are now more restrictive, many founders prefer applying for an Employment Pass through their own company.
This option offers several advantages:
- More predictable approval criteria
- Greater flexibility for growing businesses
- Fewer restrictions on hiring employees
It can also simplify long-term immigration planning if you want to stay in Singapore.
How Sleek helps DP business owners in Singapore
Running a business while managing immigration rules can be complicated.
At Sleek, we help founders handle both the business and compliance side of the process.
Our services include:
- Company incorporation in Singapore
- Nominee director services for foreign founders
- Accounting and tax compliance
- Employment Pass and work pass support
- Corporate secretarial services
If you are unsure whether to renew your LOC or apply for another work pass, our team can help you choose the best path.
Whether you plan to work under a Letter of Consent as a DP business owner or apply for another work pass, obtaining proper authorisation from MOM is essential.
Making sure your immigration and employment status is compliant from the beginning helps protect your business, your reputation, and your long-term plans in Singapore.
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FAQs: Letter of Consent Renewal for DP Business Owners in Singapore
Can a Dependant’s Pass holder work in Singapore?
Yes, a Dependant’s Pass (DP) holder can work in Singapore, but they must obtain proper authorisation first. In most cases, DP holders now need their own work pass, such as an Employment Pass or S Pass, to take up employment. However, some DP holders who operate their own businesses may still apply for a Letter of Consent (LOC) from the Ministry of Manpower (MOM).
Who is eligible for a Letter of Consent (LOC) in Singapore?
A Letter of Consent is typically available to certain long-term pass holders, including Dependant’s Pass holders and some Long-Term Visit Pass holders, who want to work or operate a business in Singapore. For DP business owners, the applicant must usually be a sole proprietor, partner, or company director with at least 30% shareholding in an ACRA-registered company. In addition, the business must meet specific MOM requirements, such as creating local employment. These rules help ensure that the LOC supports legitimate business activities while complying with Singapore’s employment regulations.
How long does it take to get a Letter of Consent approved?
The processing time for a Letter of Consent application generally ranges from one to four weeks, depending on the complexity of the application and whether additional documents are required. Applications are typically submitted through MOM’s online portal by the employer or the company that the DP holder operates. Delays may occur if documents are incomplete or if MOM needs to verify company information, such as shareholding structure or employment records.
What happens if a Dependant’s Pass holder works without an LOC or a valid work pass?
No, Singapore does not impose a dividend withholding tax on payments to either residents or non-residents. Once corporate tax has been paid by the Singapore-resident company, the dividend distribution is considered tax-exempt. This feature makes Singapore a globally attractive jurisdiction for both local and foreign investors seeking efficient dividend repatriation without additional withholding obligations.
Can a Dependant’s Pass holder start a business in Singapore?
Yes, a Dependant’s Pass holder can start a business in Singapore, but they must first register the company with the Accounting and Corporate Regulatory Authority (ACRA) and obtain permission from the Ministry of Manpower to work in the business. This permission usually comes in the form of a Letter of Consent (LOC) for eligible business owners. The applicant must have an active role in the business, such as being a director or partner, and meet MOM’s eligibility criteria. Once approved, the LOC allows the DP holder to legally operate the business in Singapore.
How will the 2026 Budget changes affect my current local hiring requirements for LOC renewal?
The 2026 Budget introduces a higher salary threshold for the local employees to qualify for an LOC renewal. Starting 1 July 2026, the minimum Local Qualifying Salary (LQS) will increase from $1,600 to $1,800 per month. If you employ part-time local staff, they must be paid at least $10.50 per hour from the same date. It is recommended to audit your payroll by April or May 2026 to ensure your employees meet these new requirements before the July deadline.
