Thinking of turning your brilliant idea into a thriving business in Singapore? Good news! You may not realise but even if you’re here on a Dependant's Pass (DP), you can be part of Singapore's exciting startup scene. In the past two years there has been a 10.5% increase in DP holders starting their own venture in Singapore. Below we'll break down everything DP holders need to know about starting a business in Singapore.

What’s a Dependant Pass, Anyway?

The Dependant's Pass (DP) is for spouses or children who want to join an Employment Pass or S Pass holder in Singapore. Eligible family members include legally married spouses and children under 21 years old. Applying for a DP is simple, but we recommend checking the Ministry of Manpower (MOM) website to avoid any confusion. For adopted children, having the proper adoption paperwork is essential during application.

Recent Changes Impacting Dependant Pass Holders

In May 2021, the MOM introduced significant changes on the work eligibility of DP holders. Before, those on a DP could easily get a Letter of Consent (LOC) to work in Singapore. Now, an individual must apply for a relevant work pass, like other foreign workers in the country. This change means DP holders can still get a job in Singapore but must go through a tougher application process to get a work permit.

These changes have sparked a wave of entrepreneurial spirit among DP holders. Since it’s now harder to get an LOC, many in Singapore are starting their own businesses instead.

Perks of Having a Dependant Pass in Singapore

With a Dependant's Pass, you can enjoy more than just the sights and sounds of Singapore. Here’s what you can also do:

1. Study: If you want to go to college or want your kids to get a great education in Singapore, the DP lets you do it without needing a Student Pass for kids under 21.

2. Work: Thanks to the LOC, DP holders may also work full-time, if their employer or business setup meets MOM guidelines.

3. Start a Business: Yes, you read that right! DPs make it possible to register a business here, which can be a game-changer if you’re ready to dive into Singapore’s vibrant startup scene.

Can I Really Register a Business on a Dependant Pass?

Absolutely! But there are a few steps you need to follow to make it official:  

1. Get Your Letter of Consent (LOC): A DP alone isn’t enough to register a business in Singapore. You’ll need an LOC from the Ministry of Manpower (MOM) to make it legit.  

2. Fulfil Local Director Requirements: Singapore requires every business to have a local director. Since DP holders can’t fill this position, you’ll need to appoint a Nominee Director or find a local partner.

3. Business Registration: The official process of registering your company in Singapore. Includes selecting the business name, choosing a structure, and meeting regulatory requirements for legal recognition.

Who Can I Appoint as Nominee Director?

When starting a business in Singapore as a Dependant Pass holder, one critical requirement is appointing a local director. This director must meet specific eligibility criteria, ensuring compliance with Singapore’s regulatory framework.

Eligible individuals who can be appointed as a Nominee Director include:

• Employment Pass (EP) Holders: If your spouse or partner holds an Employment Pass, they can serve as the local director for your business. This is a common arrangement that allows you to leverage their employment status while managing your entrepreneurial venture.

• OnePass Holders: Individuals holding a OnePass are also eligible to act as a local director. The OnePass is designed to attract highly skilled professionals, making it an excellent choice for your business setup.

• EntrePass Holders: If you or your partner have an EntrePass, which is specifically tailored for entrepreneurs, you can take on the role of the local director as well. The EntrePass is perfect for those looking to launch or operate a startup in Singapore.

Appointing a Nominee Director who meets these criteria ensures your business complies with local regulations, setting a solid foundation for your entrepreneurial journey in Singapore.

What Kind of Businesses Can I Register?

If you’re considering starting a business in Singapore, there are several types of entities you can choose from, each with its own advantages and disadvantages:

Sole Proprietorship

• Pros: Simple registration process, full control over the business.

• Cons: Unlimited liability, personal assets at risk, challenging to raise capital.

Private Limited (Pte Ltd) Company

• Pros: Limited liability protects personal assets, enhanced credibility with stakeholders, easier to secure funding.

• Cons: More complex to set up, stricter compliance and reporting requirements, additional costs for incorporation and maintenance.

Partnership

• Pros: Easy to establish, shared responsibilities and resources, potential for increased capital.

• Cons: Unlimited liability for general partners, personal assets at risk, possible conflicts between partners without clear roles.

What’s This Letter of Consent (LOC) All About?

The Letter of Consent (LOC) acts as your work visa if you're on a Dependant Pass (DP) and want to work or run a business in Singapore. Here’s what you need to know:

• Eligibility for LOC: You can apply for an LOC if you’re a sole proprietor, a business partner, or hold at least 30% of the shares as a director of a business registered with ACRA (the Accounting and Corporate Regulatory Authority).

• Renewal Requirements: To renew your LOC, you must ensure that your Dependant Pass is valid for at least three months. You can renew your LOC at the same time you renew your DP, and you can do so up to six months before the LOC expires. Additionally, to keep your LOC, you must hire at least one Singaporean or Permanent Resident who meets the local qualifying salary and CPF contribution criteria.

• Renewal Process: Renewal is free of charge and typically takes within three weeks. To renew, log in to the EP eService and ensure that your business's turnover information is updated before submitting your application.

For more details on the LOC and its renewal process, visit the Ministry of Manpower Singapore.

DP Restrictions You Should Know

Your DP is dependent on your spouse’s Employment Pass (EP). This means if your partner’s EP expires, your DP and LOC will also be up for renewal. And yes, any changes in your relationship status can impact your eligibility to continue holding a DP.  

Pro Tip: If you’re committed to running a business in Singapore long-term, consider exploring other work pass options [ to reduce dependency on a spouse’s EP status.  

Key Documents Needed for DP Application

For your DP, have these ready:

• Your passport’s personal info page.  

• If you’re a legally married spouse, a copy of your marriage certificate.  

• For kids under 21, official birth certificates or adoption orders, along with proof of vaccinations.

Starting a business in Singapore on a Dependant Pass is entirely doable, and it’s a fantastic way to join Singapore’s thriving entrepreneurial community. With a bit of paperwork and a lot of ambition, you’ll be off to a running start!

Ready to embark on your entrepreneurial journey in Singapore?  

Discover the 10 simple steps to register your company and get started today! Check out our guide for all the details: Start a Business in Singapore.

Sources

• Spout Asia (https://www.sproutasia.com/blog/how-do-i-register-business-in-singapore-with-dependant-pass)

• DP, Ministry of Manpower (https://www.mom.gov.sg/passes-and-permits/dependants-pass)

• LOC, Ministry of Manpower(https://www.mom.gov.sg/passes-and-permits/loc-for-dependants-pass-business-owners/renew-cancel-or-replace)

• My Business Asia (https://mybusiness-asia.com/news-insights/rule-changes-for-dependants-pass-holders-working-in-singapore/)

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