Dependant's Pass (DP) Holders Who Wish to Operate a Business in Singapore

Dependant's Pass (DP) Holders Who Wish to Operate a Business in Singapore

Dependant's Pass (DP) Holders Who Wish to Operate a Business in Singapore

Dependant's Pass (DP) holders in Singapore who intend to operate a business can apply for a Letter of Consent (LOC) from the Ministry of Manpower (MOM). This permit allows DP holders meeting specific criteria to legally run a business within the city-state.

Here's a breakdown of the key information:

Eligibility for DP Holders Operating a Business with an LOC:

To be eligible for an LOC as a business owner, a DP holder must be one of the following:

• 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.

Key Points about the LOC for Business Owners:

• No Minimum Salary Requirement: Unlike Employment Passes, there's no minimum salary requirement for an LOC.

• No Quota: LOCs are not subject to quotas, offering more flexibility compared to some other work passes.

• Validity: The LOC is typically valid for one year or up to the expiry date of the Dependant's Pass, whichever is shorter. For renewals, it's usually up to the DP expiry.

• Tied to DP: The LOC is dependent on the validity of the Dependant's Pass. If the DP is cancelled or expires, the LOC becomes invalid.

• Renewal Requirement: To be eligible for an LOC renewal, the business generally needs to hire at least one Singaporean/Permanent Resident who earns at least the prevailing Local Qualifying Salary (LQS) and receives CPF contributions for at least three months. The prevailing LQS (as of July 1, 2024) LQS is S$1,600 per month (gross wage).

How to Apply

1. Submit an online request: You first need to submit an online request to apply for an LOC.

2. Receive outcome of request: MOM will typically email you the outcome of your request within one week.

3. Apply via EP eService: If your request is approved, you can then proceed to apply for the LOC using the EP eService on the myMOM Portal, or engage an employment agent to apply on your behalf.

4. Processing Time: Most LOC applications are processed within four weeks. It may take longer if additional information is required.

5. Start Operation: DP holders can only begin operating their business after receiving the approved LOC.

Important Considerations:

• Your Dependant's Pass must be valid for at least three months before applying for an LOC. If it's not, you'll need to renew your DP first.

• The business must be legally registered with the Accounting and Corporate Regulatory Authority (ACRA).

It's always advisable to refer to the official Ministry of Manpower (MOM) website for the most up-to-date and specific requirements and procedures.

How Bestar can Help

Dependant's Pass (DP) Holders Who Wish to Operate a Business in Singapore

Engaging professional help, such as Bestar, can significantly streamline the process of applying for a Letter of Consent (LOC) as a Dependant's Pass (DP) holder wishing to operate a business in Singapore. Here's how we can help:

1. Expert Guidance and Eligibility Assessment:

• Understanding Requirements: Bestar is well-versed in the latest MOM regulations for LOC applications, including eligibility criteria for DP holders who are business owners (sole proprietor, partner, or company director with specific shareholding).

• Pre-application Consultation: We can assess your individual circumstances and business plan to determine your eligibility and advise on the most suitable path, ensuring you meet all prerequisites before applying.

• Staying Updated: Immigration laws and policies can change. Bestar stays updated on these changes, providing accurate and current advice.

2. Seamless Application Process:

• Document Preparation: We assist in compiling and preparing all necessary documents, ensuring accuracy, completeness, and adherence to MOM's specific formats and guidelines. This includes business registration documents (ACRA BizFile), passport details, DP details, and any other supporting documents.

• Online Submission: As LOC applications are typically submitted online via the MOM's EP eService portal (which often requires a CorpPass login for businesses), Bestar can handle the submission process on your behalf, reducing the administrative burden.

• Error Prevention: Incomplete or inaccurate documentation is a common reason for application rejection. Bestar minimizes these risks by meticulously reviewing all paperwork.

• Correspondence with MOM: We can manage communication with the Ministry of Manpower, promptly responding to any requests for additional information or clarifications, which helps to avoid delays.

3. Business Setup and Compliance (Integrated Services):

• Company Registration: Bestar offers integrated services that include company incorporation with ACRA. This is a crucial first step for DP holders looking to operate a business. We can help with name reservation, drafting the company constitution, and filing all necessary documents.

• Corporate Secretarial Services: Singapore law requires every company to have a company secretary. Professionals can provide this service, ensuring ongoing compliance with statutory requirements, maintaining corporate records, and filing annual returns.

• Accounting and Tax Services: We can offer bookkeeping, GST registration and filing, corporate tax compliance, and advisory services to ensure your business operates legally and efficiently from a financial perspective.

• Advisory on Local Hiring: For LOC renewals, DP holders who are business owners need to meet the criterion of hiring at least one Singaporean/Permanent Resident earning the prevailing Local Qualifying Salary with CPF contributions. Bestar can advise on these requirements and strategies for compliance.

  
  

4. Addressing Challenges and Appeals:

• Troubleshooting: If your application faces issues or is rejected, Bestar can help identify the reasons for the rejection, gather new evidence, and assist in submitting an appeal or a fresh application, increasing your chances of success.

• Proactive Problem Solving: Our experience allows us to anticipate potential challenges and provide solutions before they become major hurdles.

5. Time and Cost Efficiency (Indirectly):

• Saving Time: By handling the complex administrative tasks, Bestar frees up your time to focus on your core business activities, strategy, and growth.

• Reducing Rework: Minimizing errors and rejections means less time spent on resubmissions and appeals, leading to a smoother and often faster process overall.

• Avoiding Penalties: Ensuring compliance from the outset helps you avoid potential fines and legal repercussions due to non-compliance.

In essence, engaging a professional firm provides peace of mind, expertise, and a streamlined approach to navigating the regulatory landscape in Singapore for DP holders looking to establish and operate a business.

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