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Can a Dependant’s Pass Holder Start a Business? LOC, 30% Shareholding and Switching Passes
Short answer: A Dependant’s Pass holder can start a business in Singapore, but only after the Ministry of Manpower (MOM) issues a Letter of Consent (LOC). You must be a sole proprietor, a partner, or a company director holding at least 30% of an ACRA-registered company. Trading before the LOC arrives is not allowed.
Key facts at a glance
- A Dependant’s Pass (DP) alone does not let you run a business. MOM requires an LOC first (MOM, as at 7 November 2026).
- Eligible owners: sole proprietor, partner, or company director with at least 30% shareholding (or a member of a company limited by guarantee) in an ACRA-registered business.
- The LOC is free. MOM says most cases take within 4 weeks, and the online request step gets an outcome within 1 week.
- Your DP needs at least 3 months of validity left when you apply.
- A first LOC lasts the shorter of one year or the DP expiry date. Renewal needs at least one Singapore citizen or Permanent Resident employee paid at least the Local Qualifying Salary (S$1,800 a month for full-time staff) with CPF for 3 consecutive months.
- Every Singapore company must have at least one director who is ordinarily resident in Singapore (Companies Act 1967, section 145(1)).
This article is general information only and is not legal, tax or immigration advice. For matters needing legal advice, we work with a panel of experienced Singapore law firms.
Can a Dependant’s Pass holder start a business in Singapore?
Yes, if you hold an LOC for your business. Without it, MOM does not treat you as authorised to work in or run a Singapore business.
The Dependant’s Pass is a stay pass for the legally married spouse or unmarried children under 21 of eligible Employment Pass or S Pass holders. Per MOM’s Dependant’s Pass working page (last updated 25 March 2026), a DP holder who wants to set up or operate a business can apply for an LOC. MOM’s LOC application page adds that DP holders can only begin operating the business after receiving the LOC.
Our separate guide on the Letter of Consent for Dependant’s Pass holders who run a business goes through the MOM process in detail. This article covers the wider question of ownership, directorship, and when another pass is the better route.
Who qualifies for a Letter of Consent as a business owner?
You qualify if you own an ACRA-registered business in one of three ways. MOM’s eligibility page (last updated 14 January 2026) sets out the roles below.
| Your role | Condition for an LOC |
|---|---|
| Sole proprietor | The business is registered with ACRA. |
| Partner | The business is registered with ACRA. |
| Company director | You hold at least 30% of the shares of the ACRA-registered company. |
| Member of a company limited by guarantee | The company is registered with ACRA. |
The 30% figure is a floor set by MOM for the LOC. It is not a ceiling, so a founder with a higher stake also meets it. Two or three co-founders splitting the shares need to check that the DP holder’s own stake reaches 30% before applying.
What can a DP holder do with and without a work pass?
Without a pass, a DP holder cannot work for or provide services to a Singapore-based organisation or client. MOM treats this as covering all activities done for gain.
MOM’s FAQ for stay-pass holders (last updated 14 March 2024) draws a line between Singapore-based and overseas-based work. The table below sets out what MOM’s pages say.
| Activity | What MOM says |
|---|---|
| Run your own Singapore business | Needs an LOC, and you can only start operating after receiving it. |
| Work as an employee in Singapore | The employer applies for an EP, S Pass or DP Work Permit (DP-WP) for you. There is no minimum qualifying salary for a DP-WP. |
| Work or provide services for a Singapore-based (ACRA-registered) organisation or client | A work pass is needed. |
| Work or provide services for an overseas-based organisation or client while living in Singapore | No work pass needed, per MOM’s FAQ. |
| Volunteer | No work pass needed if no payment is involved and the activity is for a charitable purpose. |
If you plan to take a salaried job instead, see our guide on hiring a Dependant’s Pass holder as an EP, S Pass or DP Work Permit candidate, and our overview of which work passes allow a spouse to join you.
Can a Dependant’s Pass holder be a company director or shareholder?
For the LOC route, MOM expects a director to hold at least 30% of the company. Whether a DP holder can be a director or shareholder on paper before applying for an LOC is not addressed on the MOM pages we opened, so confirm it with MOM before you appoint anyone.
Two points are clear from the sources we checked.
- Under the Companies Act 1967, section 145(1), every company must have at least one director who is ordinarily resident in Singapore. Section 145(2) requires every director to be a natural person aged 18 or above with full legal capacity (Singapore Statutes Online, as at 7 November 2026).
- Section 145(10) makes members personally liable for company debts if the company carries on business for more than 6 months without such a director and they know it.
We could not open the ACRA page that explains who counts as ordinarily resident, so we do not state whether a DP holder qualifies. Ask ACRA or a professional before you rely on a DP holder as the company’s only resident director. If you need a resident director, Raffles Corporate Services explains how a foreigner can register a Singapore company.
How do you apply for a Letter of Consent?
You apply in two stages: an online request first, then the full LOC application through the myMOM Portal. The process is free (MOM, as at 7 November 2026).
- Check that your DP has at least 3 months of validity left. If it does not, renew the DP first.
- Register the business with ACRA. The LOC is only for owners of an ACRA-registered business.
- Submit MOM’s online request to apply for an LOC. You get the outcome within 1 week.
- If approved, apply through the EP eService on the myMOM Portal, or appoint an employment agent to apply for you. Update the business’s turnover information before you submit.
- Check your application status after 3 weeks. If MOM asks for more documents, submit them through the EP eService.
- Start operating only after MOM emails you the LOC outcome.
MOM states the processing time as within 4 weeks for most cases. Allow extra time if MOM requests documents.
What happens when you renew the Letter of Consent?
A first-time LOC is valid for the shorter of one year or the DP expiry date. Renewals run up to the DP expiry date, and renewal brings in a local hiring condition.
| Item | First LOC | Renewal |
|---|---|---|
| Duration | Shorter of one year from issue or DP expiry | Up to DP expiry date |
| DP validity needed at application | At least 3 months | At least 3 months |
| Local hire | Not stated on MOM’s eligibility page | At least 1 Singapore citizen or Permanent Resident earning the Local Qualifying Salary, with CPF for 3 consecutive months before you apply |
| Typical processing | Within 4 weeks for most cases | Within 3 weeks for most cases |
The Local Qualifying Salary (LQS) is the minimum salary MOM sets for local employees. Per MOM’s LQS page (last updated 1 July 2026), it is S$1,800 a month gross for locals working 35 to 44 hours a week, and S$10.50 an hour gross for part-timers working fewer than 35 hours. MOM’s LOC renewal page does not say whether the part-time rate counts for the renewal condition, so check with MOM if you plan a part-time hire.
You can renew up to 6 months before the LOC expires, and MOM says you can renew the LOC when you renew the DP. Start recruiting and paying CPF at least 3 months before you apply, because MOM counts 3 consecutive months of CPF before the application date. MOM’s pages do not say whether the LQS will change in 2027. Check the LQS page again before you hire.
When should you switch to an EntrePass or Employment Pass instead?
Consider switching if you want to be the main pass holder, or if the business is venture-backed or technology-led. The LOC is the lighter route, but it ties your right to work to the main pass holder’s DP.
The LOC ends when the DP is cancelled or expires, or when the business is no longer active. MOM’s EntrePass page (last updated 14 August 2026) describes a pass for founders of a private limited company that is venture-backed or owns innovative technologies. The pass holder must hold at least 30% of the company, and the applicant must meet at least one criterion, such as raising at least S$100,000 in a single funding round or being supported by a government-recognised or internationally renowned incubator or accelerator. Employment agencies are among the business types MOM lists as not eligible for an EntrePass.
If you move to an Employment Pass or S Pass, MOM’s DP working page says you must meet the prevailing qualifying criteria and have your DP cancelled before the new pass is issued. See our guides on EntrePass founder eligibility and renewal, DP to EP and DP to LOC conversion routes, and the Employment Pass overview.
What happens to the LOC when the business closes or the DP ends?
The LOC stops being valid, but you still need to cancel it. MOM says to cancel within 1 week after the business is no longer active.
MOM’s renewal, cancel and replace page says you can submit a cancellation request up to 14 days in advance, and cancellation is immediate unless you make an advance request. Cancel through the EP eService. If you lose the LOC document, report the loss to MOM and request a replacement. If the main pass holder leaves Singapore or the DP is cancelled, plan the wind-down or the pass switch before the date, so the business does not run without valid authority.
Frequently asked questions
Can a DP holder start trading while the LOC is pending?
No. MOM states that DP holders can only begin operating the business after receiving the LOC. Registering the company with ACRA does not by itself authorise you to work.
Does a DP holder need an LOC to run a business with overseas clients only?
MOM’s FAQ says a stay-pass holder in Singapore does not need a work pass to work for or provide services to an overseas-based organisation or client. The same FAQ says a work pass is needed for Singapore-based organisations or clients. If your business is registered with ACRA and you operate it, use the LOC route and check your facts with MOM.
How much shareholding does a DP holder need for an LOC?
At least 30% if you are a company director. Sole proprietors and partners are eligible as owners of an ACRA-registered business, and members of a company limited by guarantee are also covered (MOM, as at 7 November 2026).
Is there a fee for the LOC?
MOM states the application is free. Separate costs, such as ACRA registration or an employment agent’s fee, are not MOM fees.
Do I have to hire a local to get the first LOC?
MOM’s eligibility page lists the local hire condition under renewal, not under the first application. Check the current requirements with MOM before you apply, because conditions can change.
Planning to start a business on a Dependant’s Pass, or comparing it with an EntrePass or Employment Pass? Contact Little Big Employment Agency for pass, PR and citizenship applications. Email [email protected] or Call/SMS/WhatsApp +65 8501 7133. For incorporation and accounting, see Raffles Corporate Services.
Last reviewed: 7 November 2026. The Editorial Team, Little Big Employment Agency.
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