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- Can I Open a Company in Singapore under Dependant Pass?
Can a Dependent Pass Holder Start a Business in Singapore?
- Modified: 4 October 2024
- 6 min read
- Incorporation
Nataliya Dzhariani
Business Writer
A brand & marketing top-manager, Nataliya has been growing businesses in New York, Moscow, London, and Paris. She is a fierce amateur interior designer and a mixology devotee.
Starting a company in Singapore while on a Dependant Pass (DP) is possible but requires meeting specific criteria. DP holders can either be employed by a company or own shares and incorporate a business, provided they follow the necessary steps, including obtaining a Letter of Consent (LOC) from the Ministry of Manpower and appointing a local director. This guide breaks down the process, offering practical steps and clarifications.
Key Takeaways
- To open a business in Singapore as a Dependent Pass holder, you must first register a private limited company and appoint a local director who is either a Singaporean citizen or permanent resident.
- You’ll need a Letter of Consent (LOC) to work legally in Singapore. This must be submitted by the company and processed by the Ministry of Manpower. The LOC application can take up to three weeks.
- The incorporation process involves various costs, from nominee directors to corporate services. The overall timeline for business setup, including EP application, can range from three to six months, with fees depending on whether you seek an Employment Pass.
What Is a Dependant's Pass?
If you’re an expat living in Singapore who's in possession of an Employment Pass or S Pass, you could be eligible to apply for an official permit that allows family members to join you. The pass that’s granted in this regard is called a Dependent Pass.
There are various rules and stipulations attached to the DP application process. We’ve unpacked some of the most important info to help you understand how eligible family members who are granted a Singapore Dependant Pass are able to explore work opportunities, incorporate their own business in Singapore or explore the other benefits that a Dependent Pass offers.
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What Are the Benefits of a Dependant's Pass?
As a Dependent Pass holder, one is able to live or study in Singapore. Work and full-time employment is also possible if your employer is willing to submit an application for a Letter of Consent (more about that below) on your behalf. Remember that work is only permitted if a family member holds a value Employment Pass or S Pass.
- You can get employed or become an employer: DP holders in Singapore are able to find employment, based on the validity of your spouse’s permit.
- You can become a shareholder: As well as owning a company in Singapore, you’re also eligible to own shares if you’ve got a Dependant’s Pass.
- You can study: Children under the age of 21 will be eligible to study in Singapore if they are in possession of a Dependant Pass. Unlike the above, a student pass doesn’t require any additional applications.
Looking to work and bring your family to Singapore? Apply for an Employment Pass to work legally in Singapore and bring your loved ones with a Dependant Pass. Our expert team will guide you through the application process, ensuring a smooth transition for you and your family. Contact us today to get started!
I Want a Dependant Pass! What Criteria Do I Need To Meet?
Obtaining a Singapore Dependant Pass isn’t always a guarantee. It can be based on a quota system or government discretion. To stand the best chance of approval, you need to make sure you meet this criteria:
- Legally wed: Spouse should be legally wedded to the holder of the Employment Pass earning S$6,000 or more
- Children of age: Your children need to be under the age of 21 in order to be eligible to apply for a Dependant’s Pass
- Legal docs for adopted children: If you have adopted children, part of the application process will require you to submit related legal documents of adoption
Can I incorporate if I Have a Dependant Pass?
Yes, you can, but just like getting the pass itself, there are conditions and steps you need to follow. The process to incorporate is essentially the same as registering your business as a foreigner who would want to start a company in Singapore. If you are in Singapore on a Dependant Pass, here are the steps you’d need to take:
Step 1: Register a Private Limited Company
You would need to:
- Draft the incorporation documents
- File them with Singapore’s Accounting and Corporate Regulatory Authority (ACRA)
- Obtain the Certificate of Registration
- Obtain all the licences needed to operate
Step 2: Appoint local directors who are Singapore citizens or Permanent Residents
Find a local contact, for example, your friend or a trusted contact with a Singaporean Citizenship or Permanent Resident as your local director. This requirement is important to register your company in Singapore.
Step 3: Open your corporate bank account
Arrange for an executive director to open your corporate bank account after your company is incorporated as a Private Limited Company.
As a holder of a Dependent Pass, you cannot open a bank account on your own. You would need to apply for an Employment Pass. That’s one thing we can also help you with.
What Is a Letter of Consent (LOC) & How Do I Get One?
A letter of Consent (LOC) is a requirement for anyone on a Singapore Dependant Pass who is looking to work in Singapore. You’ll need to obtain this from Singapore’s Ministry of Manpower, and it’ll serve as permission to work. The time application to be granted your formal takes about 3 weeks to receive.
Here are some requirements that apply to getting your LOC:
- The application has to be submitted by your employer – that is, your new company.
- Your DP has to be valid for 3 months.
- Your Dependent Pass has to be sponsored by an EP, EntrePass, or a Personalized Employment Pass holder. If your spouse has an S-Pass, you can’t choose this option.
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What Are the Restrictions for DP Holders?
Dependency on your spouse:Your Singapore Dependant Pass status is tied to your spouse's Employment Pass. If the original EP expires, so does your DP and your Letter of Consent (LOC). So, your status in Singapore is completely dependent on your spouse.
Requirement for local director:Singapore law requires each business to have a resident director. Dependent Pass holders can’t be one, so you either ask a local you know to play the role or hire a Nominee director. It’ll cost you S$1,800 - S$2,500 a year, plus many agencies charge a refundable deposit of S$2,000.
Timeframe & cost of application:Employment Pass takes 3 - 6 months, while you’re waiting you’ll spend about S$500 – S$1000 on the nominee. Once your EP is ready, you fire the nominee, and become a resident director yourself.
Who Is a Nominee Director?
A nominee formally holds director’s position, without any actual decision-making powers or authority to run the company. He is a company officer on paper, necessary to meet the requirements of the law.
What Do I Need To Start My Own Business?
To register a business in Singapore you need to have a local address, a corporate secretary, a resident director and paid up capital of $1.
What Does the Incorporation Process Look Like?
Usually, incorporation is handled by an agency which also provides you with necessary services such as corporate secretary, nominee director or local address. They will fill in an application and submit it to ACRA. The application process calls on the need for:
- Your passport details
- Your company name
- Resident or nominee director data
- Corporate secretary details
- All your shareholder’ specifics
- Your local address
Normally an application can be confirmed within minutes. This is something we’re experts at, so let us know if you need a little guidance with your new Singapore-based company’s incorporation process.
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How Much Does It Cost To Open a Company in Singapore?
Got a Dependant’s Pass, met all the criteria we’ve covered and ready to get going on incorporating your company? Great! Next up, you should consider the costs of doing so, to manage your own expectations and make sure you’re financially prepared and ready to get the ball rolling.
The expenses of opening a company include incorporation, government fees and the first year of necessary services – corporate secretary, local address, and nominee director. The total depends on whether you apply for a new EP or not. Here are the two options:
| You want to be an employee only, not a director, and you don't apply for an EPYou'll need a nominee director all the time | You want to be a director, and you apply for an EPHire a nominee for 3–6 months while waiting for an EP |
| S$2,500–S$5,000 | S$2,200–S$4,500 |
| + S$6,000 monthly salary you pay yourself to qualify for EP |
OR
| S$900–S$3,500 | S$1,700–S$3,000 |
| If you have a resident director | If you have a resident director |
Summary
In conclusion, Singapore Dependant Pass holders have the opportunity to become business owners by incorporating a private limited company. To work legally and run their businesses, dependant’s pass holders must appoint a local director and apply for a Letter of Consent (LOC) from the Ministry of Manpower. With the right steps, dependant’s pass holders can successfully transition into entrepreneurship and contribute to Singapore’s thriving business ecosystem.