Employment Pass (EP) holders can only work for the employer specified on their pass. Therefore, when an EP holder serves as a director for another company, they must fulfill the duties of a director according to the provisions of the Companies Act.
However, according to Section 11 of the Employment of Foreign Manpower (Work Passes) Regulations 2012, an EP holder can serve as a director for another company if they obtain a Letter of Consent (LOC) issued by the Ministry of Manpower (MOM).
The secondary directorship is only granted to EP holders intending to serve as directors in related companies, such as subsidiaries. If the secondary directorship is in an unrelated company, such as a fund entity, and it is relevant to the EP holder’s current occupation, the Ministry of Manpower will consider granting an LOC on a case-by-case basis.
Can EP holders hold shares in Singapore companies
Yes, the Singapore government allows Employment Pass holders to own shares in Singapore registered companies.
Can S Pass holders serve as company directors
No, S Pass holders are not permitted to act as directors or sole proprietors of Singapore local companies. If an S Pass holder wishes to set up a company in Singapore, they should terminate their current employment and apply for an EntrePass.
If an applicant is found to hold a director position in a local company in Singapore during the application or renewal process for an S Pass, the pass application will be rejected. Even if the directorship is subsequently revoked and an appeal is made, the chances of success are unlikely.
Applicants rejected for this reason may also face a Ministry of Manpower employment ban.
Can S Pass holders hold shares in Singapore companies
The Singapore government does not prohibit S Pass holders from engaging in investment activities, but such investments cannot be dominant, meaning they cannot serve as major shareholders in Singaporean companies.
From the perspective of the Ministry of Manpower in Singapore, S Pass holders can engage in small-scale investments in Singaporean companies. How is the proportion of small-scale investment defined? Based on past experience, the investment proportion cannot exceed 20%.
Does a foreigner need to apply for an Employment Pass (EP) to become a company director?
Foreigners who do not reside in Singapore, such as holders of Social Visit Passes, do not need to apply for an Employment Pass (EP) to become registered directors of a company.
If you are a foreign entrepreneur residing in Singapore and wish to conduct business here, you can apply for an Entrepreneur Pass (EntrePass) from the Ministry of Manpower (MOM).
Eligible foreign entrepreneurs can apply for the EntrePass either before or within 6 months after registering their company with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore.
If you are a Dependant’s Pass (DP) holder who wishes to conduct business in Singapore, you can apply to MOM after registering your business with ACRA.
