As a DP holder, you can own a Private Limited Company (Pte Ltd) in Singapore. There are several advantages choosing to incorporate a Private Limited Company. A Pte Ltd enjoys more favorable tax rates, legal protection and easier access to capital. The downside of a Private Limited Company is they come with high compliance and operation costs.
Unfortunately, DP holders cannot open a bank account of their own. They normally share a joint account with their working spouse. If they want to open a bank account, they will then need to apply for an Employment Pass. Paul Hype Page can assist you with this.
However, there is a point that you need to take note. If your spouse is a holder of the Singapore S Pass, you will not be able to qualify to obtain a DP.
A child or marriage partner of an individual holding an Employment Pass (EP) can get a Letter of Consent so as to start a business or get employment.
DP holders can work in Singapore once their employer obtains a Letter of Consent from the Ministry of Manpower (MoM).
The Letter of Consent is an official document given by the MOM to permit qualified DP, Long Term Visit Pass (LTVP) or Long-Term Visit Pass Plus (LTVP+) holders to look for employment or run a business in Singapore.
For you to qualify to obtain the LOC from MoM, you must meet the following conditions. You must,
- Hold a valid DP valid for a minimum of 3 months
- Have a job offer by an employer in Singapore
- Must be an immediate family member of an Employment Pass holder
Although you have the LOC and you are able to start a business in Singapore with your DP, you are still unable to be a director of the company.
Do note that in order to be a Director in the Private Limited Company in Singapore, you would have to apply for an Employment Pass. Therefore, out professional advice to you is to first register your company, and then apply for an Employment Pass after the company has been incorporated so that you can be the director for the company.
What are the benefits of employing DP holders (using LOC) to Singapore Companies?
Singapore companies will benefit from increased labor force. Those with these documents can be employed by different sectors in the country hence boosting productivity in the country and the economy as a whole.
Due to the shortage of manpower in the country, the Singapore-based companies will experience a decrease in operating costs. Initially, the workforce was understaffed forcing the companies to increase their salaries to maintain them. But with an additional workforce, the costs will go down.
Since Letter of Consent holders are not considered as expatriates, there will be an increase in Singapore’s labor pool. This will enable future employers to save a lot of money spent on government levies especially when they decide to employ individuals who have LTVP and LTVP+ permits.