Can an Employment Pass Holder Be a Director or Start a Company in Singapore?

In short: Yes, with conditions. An Employment Pass (EP) holder can own shares in any Singapore company. But being a director is treated as work, so an EP holder can be a director only of the company that employs them, or of another company with a Letter of Consent (LOC) from MOM. That’s usually granted only for related companies. To run your own business, the usual route is to set up the company and apply for an EP through it.

Setting up your own company to get an EP? See Singapore company registration and our Employment Pass service. Free EP eligibility check · documents signed remotely · if MOM rejects your EP, we appeal for free.

Can an EP holder own shares in a Singapore company?

Yes. MOM confirms that an Employment Pass holder is allowed to own shares in a Singapore-registered company. Owning shares is an investment, not work, so you don’t need extra permission to be a shareholder, whether you hold 1% or 100%.

What you can’t do on shares alone is work for that company. Taking part in the business (signing contracts, managing staff, serving clients) is work, and an EP only lets you work for the employer named on your pass.

Can an EP holder be a director of the company that employs them?

Yes. If your EP was issued by Company A and Company A appoints you as a director, that is part of your job. Many founders who relocate to Singapore hold an EP issued by their own company and also sit on its board.

ACRA also counts a valid EP holder as “locally resident” for the rule that every Singapore company needs at least one director who is ordinarily resident in Singapore. So an EP holder director can be that resident director for their own company.

Can an EP holder be a director of another company?

Only with MOM’s approval. MOM treats directorship duties under the Companies Act as work, so an EP holder who wants to be a director (executive or non-executive) of a company other than their employer needs a Letter of Consent (LOC) first.

MOM says it will generally grant an LOC when:
– the other company is related by corporate shareholding to your employer (for example a subsidiary, holding company or sister company with a common corporate shareholder), as shown in ACRA records; and
– the directorship is connected to your main job.

If the two companies are linked only because you personally own shares in both, MOM says that is not a common corporate shareholding relationship and the LOC will be refused. For unrelated companies, MOM asks the relevant government agency for its view and may grant the LOC if the agency supports it.

The company appointing you applies for the LOC. It takes up to about 5 weeks and lasts until your current EP expires or is cancelled. Register the directorship with ACRA only after MOM approves.

I’m on an EP with my employer. Can I start my own company on the side?

You can own it, but you can’t run it while your EP is tied to someone else. In practice, EP holders who want their own company usually:
1. incorporate the company with themselves as shareholder and someone else, such as a Singapore citizen, PR or nominee director, as the resident director;
2. keep their current job and stay out of day-to-day work in the new company; and
3. when ready, apply for a new EP through their own company (or an EntrePass if they qualify), cancel the old EP, and then become a director of the new company.

ACRA’s own guidance says FIN holders, including EP holders, should check with MOM before accepting a director role, and that EP holders must first get an LOC.

Can I get an Employment Pass through my own Singapore company?

Yes. A founder can set up a Singapore company and have that company apply for the founder’s EP. MOM assesses it like any other EP:

The company also needs real business substance and funds to pay the salary. Our team prepares the company assessment and the EP application. 96% EP success rate across 1,000+ applications since PHP started (PHP internal records).

What if I don’t want to relocate to Singapore at all?

Then you don’t need an EP. A foreigner living overseas can own 100% of a Singapore company and be one of its directors, as long as the company also has at least one director who is ordinarily resident in Singapore. If you don’t have one, a nominee director can fill that seat. You’d only need an EP (or EntrePass) once you want to live and work in Singapore.

Frequently asked questions

Can an EP holder be a shareholder of a Singapore company?
Yes. MOM allows EP holders to own shares in a Singapore-registered company. Shareholding alone isn’t work.

Do I need a Letter of Consent to be a director of my employer’s subsidiary?
Yes. The subsidiary applies to MOM for an LOC. MOM generally approves it for companies related by corporate shareholding.

Can my own company’s resident director be an EP holder?
Yes, if the EP holder works for that company. ACRA counts valid EP holders as locally resident.

I own two companies personally. Can I be a director of both on one EP?
Usually not. MOM says that companies linked only by an individual shareholder don’t meet the common corporate shareholding test.

Can a Dependant’s Pass holder be a director?
Check with MOM before accepting. ACRA advises all FIN holders to confirm with their pass issuer first.

Ready to set up your Singapore company?

We register your company (S$800 + S$315 ACRA fee), arrange a nominee director if you need a resident director (need one? We can provide one, just WhatsApp us), and prepare your EP or EntrePass (EntrePass from S$3,800).
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Sources: MOM FAQ “Can an EP holder be a shareholder”; MOM “Taking up secondary directorship” and LOC factsheet; MOM FAQ on LOC refusal without a common corporate shareholder; ACRA “Step 1: Understanding requirements & eligibility” and “Step 4.3: Choosing company directors”; Companies Act s145; MOM EP eligibility; MOM Fair Consideration Framework.