Q:
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What is this about?
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A:
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Employment Pass (“EP”) holders are generally only allowed to work for their employer as specified on their work pass. When EP holders undertake directorship appointments (executive or non-executive) in other companies, they are required to discharge directorship duties under the Companies Act. This constitutes a form of work for which a work pass is required. If they wish to do so, they will have to apply for and be granted a Letter of Consent (“LOC”) from the Ministry of Manpower of Singapore (“MOM”).
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Q:
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What should the employer do if they wish to appoint the EP holders to their Board of Directors?
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A:
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As the employer:
1.
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You must ensure that EP holder’s current employer has no objections to the EP holder taking on directorship in your company;
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2.
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You must get approval from MOM by applying for a LOC, as directorship duties are considered work; and
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3.
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If approved, you can then proceed to register the directorship position with Accounting and Corporate Regulatory Authority of Singapore (“ACRA”).
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Q:
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What are the criteria to apply for a LOC?
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A:
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MOM will generally grant a LOC only if:
1.
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Your company is related by shareholding to the EP holder’s current employer. This must be reflected in ACRA records; and
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2.
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EP holder is taking up the secondary directorship for purposes related to their primary employment.
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Q:
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What are the required documents for LOC application?
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A:
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You will need these documents to apply for LOC:
1.
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Updated Business Profile of the current employer and the employer who wish to appoint EP holder to their Board of Directors;
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2.
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A copy of EP card (front and back);
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3.
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Proposed responsibilities and remuneration of the EP holder;
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4.
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Appointment letter to take up directorship; and
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5.
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Relationship between the current employer and the employer who wish to appoint EP holder to their Board of Directors.
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Q:
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How long does it take to process the LOC application?
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A:
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For most cases, the LOC application takes around five (5) week to be processed. If MOM requires additional documents or clarification, it may take a longer time.
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