All About the Letter of Consent (LOC) for Dependant Pass Holders

Singapore is a popular destination for expatriates, many of whom relocate with their families. For trailing spouses holding Dependant’s Passes (DP), the opportunity to work in Singapore can be a key factor in ensuring a fulfilling expatriate experience. The Letter of Consent (LOC) is a crucial pathway that allows DP holders to work in Singapore. This article provides an in-depth look at the LOC for DP holders, including recent changes, requirements, and how to navigate the application process.

What is a Letter of Consent (LOC)?

A Letter of Consent (LOC) is a document issued by the Ministry of Manpower (MOM) that allows Dependant’s Pass (DP) holders to work in Singapore. The LOC is tied to the DP and enables spouses of Employment Pass (EP), S Pass, or One Pass holders to seek employment or run their own businesses in Singapore under specific conditions.

Eligibility for an LOC

1. Business Owners

DP holders who own a business in Singapore, such as a sole proprietorship, can apply for an LOC to operate their business. This applies to:

? New business owners applying for an LOC for the first time.

? Existing business owners renewing their LOC.

2. Employment with an LOC

DP holders sponsored by a One Pass holder are eligible to apply for an LOC for employment purposes. This provides a streamlined process for these DP holders to work in Singapore. A key advantage of the LOC is that there is no qualifying salary requirement, making it an attractive option for DP holders seeking employment.

Application and Renewal Process

1. New Applications for Business Owners

For DP holders applying for an LOC as a business owner for the first time:

? The business must be registered with the Accounting and Corporate Regulatory Authority (ACRA).

? The DP holder must be the owner or a shareholder of the business.

? The application must be submitted to MOM with all required documents.

2. Renewals for Business Owners

If a DP holder has previously been a shareholder of their company and is applying for an LOC as a business owner, it will be considered a renewal. Key requirements include:

? Meeting local employment criteria, which involve hiring at least one local employee who is either a Singaporean citizen or a Permanent Resident (PR).

? Paying the local employee a minimum salary of at least $1,400.

? Making CPF contributions for the local employee for at least three months before the LOC renewal application to demonstrate compliance with local employment requirements.

3. Change of Business Ownership

If a DP holder has been a shareholder of another company and held an LOC under that company, applying for an LOC for a different company as a business owner will still be considered a renewal. The same local employment criteria apply.

Local Employment Criteria

To meet the local employment criteria for LOC renewals:

? The DP holder’s business must employ at least one local employee (Singaporean or PR).

? The local employee must be paid a minimum salary of at least $1,400 as specified by MOM.

? CPF contributions must be made for the local employee for at least three months before the LOC renewal application.

Benefits of an LOC

1. Work Legally in Singapore

The LOC allows DP holders to work legally in Singapore without the need for a separate work pass, provided they meet the eligibility criteria and requirements.

2. Flexibility for Business Owners

For entrepreneurial DP holders, the LOC offers the flexibility to run a business in Singapore. This is particularly beneficial for those with business acumen and a desire to contribute to Singapore’s vibrant economy.

3. Contribution to Household Income

The ability to work through an LOC can significantly enhance the household income, providing financial stability and contributing to a better quality of life for expatriate families.

Navigating the Application Process

1. Preparing Documentation

Accurate and comprehensive documentation is crucial for a successful LOC application. This includes:

? Business registration documents.

? Proof of ownership or shareholding in the business.

? Employment records and CPF contribution statements for local employees (for renewals)

2. Meeting Compliance Requirements

Ensuring compliance with MOM’s requirements, such as local employment criteria and CPF contributions, is essential. Businesses must maintain accurate records and ensure timely CPF payments for local employees.

3. Leveraging Transform Borders’ Employment Agency License

At Transform Borders, we have an Employment Agency (EA) license, which enables us to lodge your application immediately without the need for Corppass or dealing with the complexities of administration access. This significantly streamlines the process and reduces the time and effort required for your LOC application.

The Letter of Consent (LOC) is a vital option for Dependant’s Pass holders seeking to work or run a business in Singapore. Understanding the eligibility criteria, application process, and compliance requirements is essential for a successful LOC application. By leveraging professional assistance and staying informed about MOM’s regulations, DP holders can navigate the LOC process effectively and contribute meaningfully to Singapore’s economy.

Let Us Help You

At Transform Borders, we specialise in helping Dependant’s Pass holders navigate the LOC application process. Whether you are a new business owner or renewing your LOC, we can assist you in meeting local employment criteria, preparing documentation, and ensuring compliance with MOM’s requirements. With our Employment Agency (EA) license, we can lodge your application right away, avoiding lengthy administrative processes. Contact us today to get started and let us help you achieve your goals in Singapore.

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