How Foreigners Can Start an Employment Agency in Singapore with a Nominee Director ?

Starting an employment agency in Singapore as a foreigner involves specific steps and compliance with local regulations. Here’s a straightforward guide to help you set up your agency effectively.

1. Company Incorporation with a Nominee Director

1.1 Establish Your Company

To begin, incorporate a Private Limited Company (Pte Ltd) in Singapore. Key steps include:

1.1.1 Choose a Business Activity Code

• Maid Agencies (SSIC 78103)
• Employment Agencies (excluding maid agencies) (SSIC 78104)
• Executive Search Agencies (SSIC 78105)

1.1.2 Local Requirements

• • Have a local address.
  • Appoint a corporate secretary.
  • Include at least one local director, who can be a nominee director. This person must be a Singaporean citizen or permanent resident.

Example: A foreign entrepreneur sets up an employment agency by incorporating a Pte Ltd company, choosing the SSIC 78104 code, and appointing a nominee director to comply with local regulations.

2. Securing an Employment Agency License

2.1 Apply for the License

After incorporation, apply for an Employment Agency (EA) Licence from the Ministry of Manpower (MOM). Types of licences include:

• Comprehensive Licence: Allows placement of all types of workers.
• Select Licence: For placing workers with a monthly salary above S$4,500.

2.2 Key Licence Requirements

• Eligibility: The applicant must be a Singapore citizen, permanent resident, or a foreigner with a valid work visa. The nominee director must meet these criteria.
• Key Personnel: Must have no criminal record and complete a Certificate of Employment Intermediaries course.

Example: The agency applies for a Comprehensive Licence, ensuring the nominee director and key personnel meet MOM’s requirements and complete necessary certifications.

✅Counto’s company incorporation plans include nominee director services, ensuring seamless business establishment in Singapore. Learn more here.

3. Application Process

3.1 Submitting Your Application

To apply, you need:

3.1.1 Required Documents

• Completed application form.
• Security bond of 15 months’ operations with a Singapore bank.
• Identification documents for key personnel.
• Company business profile from ACRA (Accounting and Corporate Regulatory Authority).
• Pre-approval letter from MOM, if applicable.

3.1.2 Fees and Guarantees

• Application fee of SGD 400.
• Minimum paid-up capital of SGD 50,000.
• Banker’s guarantee of SGD 20,000.

Example: After preparing the application form and required documents, the agency submits them along with the application fee and security bond, receiving in-principle approval within a few weeks.

4. Compliance and Ongoing Operations

4.1 Ongoing Requirements

Once licensed, your agency must:

• Submit Reports: Regularly file reports to MOM.
• Maintain Records: Ensure all key personnel have clear criminal records.
• Refund Policy: Provide a refund of at least 50% of service fees if employment is terminated within six months.

Example: The agency maintains compliance by submitting regular reports and ensuring clear records for all personnel, while also implementing a refund policy.

5. Additional Considerations

5.1 Employment Pass (EP)

If you plan to relocate to Singapore and manage the agency on-site, apply for an Employment Pass. This allows you to work legally in Singapore.

5.2 Nominee Director Risks

Ensure the nominee director is trustworthy, as they will have legal responsibilities. Transparent agreements are crucial.

Example: The entrepreneur applies for an Employment Pass to relocate and manage the agency, while choosing a reliable service provider for the nominee director role.

Summary

Starting an employment agency in Singapore as a foreigner involves appointing a nominee director, obtaining an Employment Agency Licence, and complying with local regulations. If you plan to manage the agency on-site, consider applying for an Employment Pass. Following these steps will help you establish and run a compliant and successful agency.

Trustworthy Nominee Director Services in Singapore

Counto includes nominee director services in our incorporation plans, providing reliable support for business owners establishing a company in Singapore. Speak to us directly on our chatbot, email [email protected], or use our contact form to get started.

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