Quick answer: An eligible Dependant’s Pass holder who owns an ACRA-registered business may apply for a Letter of Consent (LOC) to operate that business. Incorporating the business is not enough: the DP holder must wait for MOM’s LOC approval before beginning operations.

Who is eligible?

The DP holder must be one of the following owners of an ACRA-registered business:

  • a sole proprietor;
  • a partner;
  • a company director holding at least 30% of the company’s shares; or
  • a member of a company limited by guarantee.

A director with less than 30% shareholding does not meet this business-owner LOC category. A DP holder who merely works for someone else’s organisation should instead examine an Employment Pass, S Pass or DP-Work Permit.

DP validity and LOC duration

The DP must have at least three months’ remaining validity when the LOC application is made.

Application Maximum LOC duration
First LOC One year from issue or until the DP expires, whichever is earlier
Subsequent renewal Up to the DP’s expiry date

The LOC stops being valid when the DP is cancelled or expires, or when the business is no longer active. The LOC must still be cancelled when the business ceases.

Current renewal requirement

To renew, the business owner must have hired at least one Singapore citizen or Permanent Resident who:

  • earns at least the prevailing Local Qualifying Salary; and
  • has received CPF contributions for at least the three consecutive months immediately before the renewal application.

As at 15 July 2026, the Local Qualifying Salary is S$1,800 gross monthly for a full-time local employee. The LQS increased on 1 July 2026, so older content referring to S$1,600 is no longer current. Part-time and overtime calculations have separate MOM rules.

Application process, timing and cost

  • Confirm that the DP has at least three months’ validity.
  • Submit MOM’s initial online request for permission to apply.
  • MOM generally gives the outcome of that request within one week.
  • If permitted, apply through EP eService or appoint an employment agency.
  • Ensure the business’s turnover information has been updated.
  • Most full applications are processed within four weeks.
  • There is no MOM application or issuance fee for this LOC.

The DP holder can begin operating the business only after the LOC is approved. A pending request, company registration or director appointment is not permission to work.

Renewal and cancellation

A renewal can generally be submitted up to six months before expiry, usually alongside the DP renewal. MOM states that most LOC renewals are processed within three weeks. Renewal is free.

If the business becomes inactive, the LOC should be cancelled within one week. Cancellation is normally immediate unless a future cancellation date has been requested.

Business setup and compliance planning

The legal form should reflect the actual ownership and activities. Relevant matters can include:

  • whether a sole proprietorship, partnership or private limited company is appropriate;
  • the required 30% shareholding and any shareholder agreement;
  • director duties and corporate governance;
  • industry licences and approvals;
  • employment agreements, CPF and payroll for the local employee;
  • tax registration, bookkeeping and annual filings; and
  • what happens to the business if the main work pass and DP end.

For incorporation and company-secretarial support, see Raffles Corporate Services and Singapore Secretary Services. Registration by a corporate-service provider does not replace the LOC.

Common mistakes

  • Beginning client work or business operations before LOC approval.
  • Assuming that being a director alone is sufficient without the required shareholding.
  • Allowing the DP to fall below three months’ validity before applying.
  • Using the former S$1,600 LQS for a renewal after 1 July 2026.
  • Hiring a nominal local employee without genuine work, salary or CPF records.
  • Failing to cancel the LOC when the business becomes inactive.

Official MOM sources

Accurate as at and last reviewed: 15 July 2026.