Singapore is among the best places to live and work globally. This is due to its vibrant economy, high living standards, and the welcoming nature of its citizens that make people from across the world feel at home.
The government support for startups and friendly tax regime among other factors favour entrepreneurship, making interested individuals venture there.
Normally, to relocate to the city-state and start a company, you need to have an EntrePass, and to get a job, you need to have obtained an employment pass or S pass.
It is possible for your partner or children who are holders of dependant pass to relocate and start a business or work in this country that offers a plethora of opportunities.
Due to this possibility, numerous expatriate families move to Singapore and start businesses each year.
Understanding dependant pass
Individuals holding an Employment Pass or S Pass and earning at least S$5,000 per month can be joined in Singapore by their spouses or children through a dependant pass. For one to get the pass, they must fulfil the following conditions:
- A spouse needs to be legally married to the Employment Pass-holder
- The child must be aged less than 21 years
- For adopted children, legal documents to prove the adoption must be availed
Incorporating a company as a dependant pass-holder
So, can you incorporate a company in Singapore if you have a dependant pass? The fact is that you can start a company by following one of the two ways available:
- You form a company, get a letter of consent, and become a regular employee there as you continue being on a Dependant Pass (DP)
- You can become a director of your company and apply for an Employment Pass from your new company after it’s incorporated
For easy processing of your Singapore Employment Pass, engage One Visa consultants to help you do it and save you the hassle because they have extensive experience with great success stories.
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Obtaining a letter of consent (LOC)
Those on a Dependant Pass that wish to work in Singapore must obtain a letter of consent or permission to work from the Ministry of Manpower. To get permission, one must meet the following criteria:
- Have a dependant pass with a minimum of three months validity
- The application has to be forwarded by your employer (your new company)
- The applicant needs to be an immediate family member of an EP, EntrePass, or personalized EP holder.
Limitations for DP holders
The DP and LOC status are dependent on the Employment Pass of the spouse, so if the spouse loses their job or their EP expires, the DP and LOC also expire. Another restriction is that Singapore law requires a company to have at least one resident director, but a DP holder cannot be one. A DP holder will either get a local to hold the position or hire a nominee. A nominee holds a director’s position formally but with no real decision-making powers.
Starting the company on a DP
You can own a Private Limited Company (Pte Ltd) in the island state even as a DP holder. Some of the advantages of Pte Ltd is that you have limited liability, easy access to capital, and you are subjected to favourable tax rates. Conversely, the downside is that Pte Ltd has strict compliance requirements and high running costs.
Below are the requirements to incorporate a company in Singapore:
A resident director: Must be living in Singapore and can be a citizen of Singapore, a permanent resident, or one on EP.
One shareholder: A director can also be a shareholder. Shareholders can be an individual or a corporation.
A company secretary: Must be appointed within six months of incorporation and must be a citizen, permanent resident, or EP holder.
Paid-up capital: A minimum amount of money to register.
A business address in Singapore: The premises where the business receives all official documents related to the company.
You can open a company in Singapore as a DP holder using one of these two ways. The first way is by becoming an ordinary employee of your company after starting it and getting a letter of consent to work there while holding a DP.
The second way is by incorperating a company and having the company apply for an Employment Pass so that you can run it as the director.