Requirements for changing from LOC to EP

2 minute read

A Letter of Consent (LOC) allows a Dependant’s Pass (DP) holder who wish to operate a business in Singapore.

However, the main constraint of the LOC is that the validity of the LOC is tied to the validity of the DP, which in turn, is tied to the validity of the main work pass. If the main work pass is cancelled, the DP will be cancelled as well, which will result in the LOC being cancelled too.

Thus, many LOC holders may want to consider changing from a LOC to an EP due to the stability of an EP over a LOC. However, there are certain requirements to meet to qualify for an EP.

Overview:

Requirements for an Employment Pass (EP)

  • There must be a job offer in Singapore.
  • There is a minimum monthly salary requirement of at least $5,000. Older and more experienced candidates will require higher salaries to qualify for an EP.
  • Candidates must have qualifications from recognised institutions. MOM does not accept qualifications from unaccredited institutions.
  • Candidates must possess the relevant professional working experience and specialised skill sets.
  • Candidates are encouraged to use the Self-Assessment Tool (SAT) to get an indication of whether they meet the EP requirements. If the SAT result shows that the candidate is not eligible, then the candidate should not proceed to apply for the EP because the application will be rejected. If the SAT result shows that the candidate is eligible, then the chance of getting the EP will be around 90%.

The application for a LOC is much simpler and direct. The requirements are also easier to fulfill as compared to an EP application.

Requirements for a Letter of Consent (LOC)

  • There must be a job offer in Singapore.
  • There is no minimum salary required.
  • There is no requirement for qualifications from recognised institutions.
  • There is no requirement for professional working experience and specialised skill sets.
  • The Dependant’s Pass must be valid for at least 3 months.
  • For Dependant’s Pass holders, to be eligible to apply for an LOC, the candidate 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.
  • In addition, to be eligible for a renewal of the LOC, the business 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.

Conclusion

Many people will go for a LOC. However, the benefits of an EP far outweigh the difficulties of getting one. This is especially true if you want your work pass to be independent of your spouse’s work pass, and the ability to secure a Dependant’s Pass (DP) for your family members.

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