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Employment Pass Holders taking up Secondary Directorship in Singapore

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Q:
What is this about?
A: 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”).

Q:
What should the employer do if they wish to appoint the EP holders to their Board of Directors?
A:
As the employer:

1.
You must ensure that EP holder’s current employer has no objections to the EP holder taking on directorship in your company;
2. You must get approval from MOM by applying for a LOC, as directorship duties are considered work; and
3. If approved, you can then proceed to register the directorship position with Accounting and Corporate Regulatory Authority of Singapore (“ACRA”).

Q:
What are the criteria to apply for a LOC?
A:
MOM will generally grant a LOC only if:

1.
Your company is related by shareholding to the EP holder’s current employer. This must be reflected in ACRA records; and
2. EP holder is taking up the secondary directorship for purposes related to their primary employment.

Q:
What are the required documents for LOC application?
A:
You will need these documents to apply for LOC:

1.
Updated Business Profile of the current employer and the employer who wish to appoint EP holder to their Board of Directors;
2. A copy of EP card (front and back);
3. Proposed responsibilities and remuneration of the EP holder;
4. Appointment letter to take up directorship; and
5. Relationship between the current employer and the employer who wish to appoint EP holder to their Board of Directors.

Q:
How long does it take to process the LOC application?
A:
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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