Launching a Business in Singapore with a Dependant Pass

Starting a business in Singapore as a Dependant Pass (DP) holder can be a rewarding venture. This guide provides a clear roadmap for establishing your business in Singapore while ensuring you meet all necessary requirements and legal obligations.

1. Understanding the Dependant Pass

1.1 What is a Dependant Pass?

A Dependant Pass is issued to family members of Employment Pass (EP) or S Pass holders, allowing them to live in Singapore. To be eligible:

• The primary pass holder must earn a minimum monthly salary of S$6,000.
• The pass is typically available to spouses and children of EP or S Pass holders.

1.2 Securing a Letter of Consent (LOC)

Before commencing business activities, you must obtain a Letter of Consent from the Ministry of Manpower (MOM). The LOC:

• Permits you to engage in business operations.
• Ensures compliance with Singapore’s employment regulations.

Example: If you are the spouse of an EP holder, acquiring the LOC enables you to legally manage and run your business in Singapore.

2. Steps to Register Your Business

2.1 Choosing the Right Business Structure

Select a business structure that best suits your needs:

• Sole Proprietorship: Simple to set up, with full personal liability.
• Partnership: Shared responsibilities and liabilities among partners.
• Private Limited Company: Provides limited liability protection and is often preferred for its benefits.

2.2 Appointing a Local Director

According to Singapore law, every company must have at least one local director who is a Singapore citizen or permanent resident. As a DP holder:

• You cannot act as the local director.
• Appoint a nominee director to handle legal responsibilities and represent your company.

Example: When setting up a new enterprise, choosing a local director ensures your business complies with regulatory requirements.

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2.3 Registering Your Business

To register your business:

• Prepare Required Documents
  • Draft a company constitution.
  • Provide details about directors and shareholders.
• File with ACRA
  • Submit your documents to the Accounting and Corporate Regulatory Authority (ACRA).
• Obtain a Unique Entity Number (UEN)
  • This number is necessary for official identification.

2.4 Opening a Corporate Bank Account

Once your business is registered, you will need to open a corporate bank account:

• As a DP holder, you may require an Employment Pass to open the account independently.
• Seek advice from your local director or a financial consultant for assistance.

2.5 Applying for the LOC

After registering your company:

• Apply for the LOC through MOM.
• This process typically takes around three weeks.

Example: Submitting the LOC application following registration allows you to operate your business legally.

3. Key Considerations for Operating a Business

3.1 Compliance with Employment Laws

If your business hires employees:

• Ensure adherence to fair wage practices.
• Provide proper employment contracts.
• Comply with employee rights and benefits regulations.

3.2 Renewing the LOC

The LOC needs to be renewed periodically:

• Ensure your business meets the renewal criteria.
• You may need to hire local employees to support the local workforce and qualify for renewal.

Example: As your business grows, maintaining compliance with employment laws and renewing your LOC will be essential for smooth operations.

Summary

Starting a business in Singapore with a Dependant Pass involves several key steps, from obtaining necessary approvals to selecting the right business structure and ensuring compliance with local regulations. By following this guide, you can navigate the process effectively and set your business up for success. 

Using a Company Incorporation Service as an extension of your team

Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email [email protected], or use our contact form to get started.

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