Singapore’s reputation as a global business hub makes it one of the most attractive destinations for entrepreneurs and professionals alike. If you’re in Singapore on a Dependant’s Pass (DP), you might be wondering: Can I start my own business here?
The short answer: Yes, but with conditions. As a DP holder, you cannot simply begin running a business under your DP. However, Singapore provides different pathways — including the Letter of Consent (LOC), Employment Pass (EP), and EntrePass — that allow you to transition into entrepreneurship legally.
This blog will break down the available options, eligibility rules, types of businesses you can start, and practical steps to get you started.
Understanding the Dependant’s Pass
A Dependant’s Pass (DP) is issued by Singapore’s Ministry of Manpower (MOM) to legally allow the spouse and children of an Employment Pass (EP), S Pass, or EntrePass holder to reside in Singapore. While it gives you the right to stay in the country, the DP does not automatically grant you the right to work or run a business.
Previously, DP holders could easily work or run a business with a Letter of Consent (LOC). However, the rules were revised in May 2021, and now there are more specific requirements.
Pathways to Start a Business as a DP Holder
1. Letter of Consent (LOC) for Business Owners
MOM allows some DP holders to apply for a Letter of Consent (LOC) to actively run a business. To qualify, you must be:
- A sole proprietor of an ACRA-registered business, OR
- A partner in an ACRA-registered partnership, OR
- A company director holding at least 30% shareholding in an ACRA-registered company.
Conditions of LOC:
- Validity: The LOC is valid until your DP expires (or up to one year).
- Renewal Requirement: For renewal, your business must employ at least one Singapore Citizen or Permanent Resident, who:
- Earns at least the prevailing Local Qualifying Salary, and
- Has received CPF contributions for 3 consecutive months before the LOC renewal.
- Processing Time: LOC applications are free and typically processed within four weeks.
- How to Apply: The application is submitted via MOM’s EP eService by the company or a licensed employment agent.
This pathway is best for smaller businesses such as freelance services, boutique consultancies, online stores, or other ventures that can hire at least one local employee.
2. Employment Pass (EP) Through Your Own Company
If you incorporate a Private Limited Company (Pte Ltd), you may apply for an Employment Pass (EP), sponsored by your own company. This gives you more flexibility than LOC but also requires meeting MOM’s criteria.
Requirements for EP through your own company:
- Incorporate a Pte Ltd with at least one local resident director (Singaporean, PR, or eligible EP holder).
- Apply for an EP under your company, with MOM assessing:
- Your salary,
- Your role in the company,
- The company’s business plan and ability to contribute to Singapore’s economy.
This option is suitable if you’re building a scalable venture, such as a consulting firm, e-commerce business, or professional services agency.
3. EntrePass for Innovative Startups
If your business idea is innovative, high-growth, or venture-backed, you can apply for an EntrePass.
Types of businesses eligible for EntrePass include:
- Tech startups (AI, fintech, SaaS platforms, blockchain, etc.)
- Biotech or healthcare innovations
- Green energy or sustainability solutions
- Education technology ventures
- Businesses with a strong R&D focus
Note: Traditional businesses like cafes, tuition centres, or small retail outlets generally do not qualify for the EntrePass.
4. Passive Business Ownership
Even without an LOC, EP, or EntrePass, DP holders can still act as shareholders in a Singapore-registered company. However, you cannot actively manage or run the business without the proper pass.
This is an option if you want to invest in startups, partner with active directors, or simply hold equity in a business.
What Businesses Can You Start?
Depending on the pathway, here are some ideas:
- LOC-Eligible Businesses: Freelance consulting, design, coaching, e-commerce stores, small agencies.
- Employment Pass Route: Professional services companies (marketing, finance, HR, training), trading and import/export businesses, design studios.
- EntrePass Ventures: Tech startups, biotech R&D, sustainability-focused enterprises, AI-driven platforms.
- Passive Ownership: Investment into startups, silent partnership in restaurants, or joint ventures.
Steps to Start a Business as a DP Holder
Starting a business in Singapore as a DP holder involves more than just registering a company name. It requires a clear understanding of your role, business structure, and regulatory obligations. Here’s a more detailed breakdown:
1. Decide Your Role
The first step is to determine how involved you want to be in the business:
- Passive shareholder: You only invest capital and hold shares. You don’t need an LOC, EP, or EntrePass.
- Active director or manager: You’ll need either an LOC (if eligible) or an EP to legally manage the company.
- Entrepreneur scaling a startup: If your idea is innovative and high-growth, you may need an EntrePass.
Tip: Clarifying your role early helps you choose the right business structure and visa type, saving time and avoiding compliance issues later.
2. Register with ACRA
The Accounting and Corporate Regulatory Authority (ACRA) is Singapore’s business registrar. You must register your company here before applying for any passes.
You can choose from three main structures:
- Sole proprietorship: Simple, low cost, but you bear full liability. Eligible for LOC if you’re the sole proprietor.
- Partnership: Shared ownership and responsibility. Eligible for LOC if you’re listed as a partner.
- Private Limited Company (Pte Ltd): Most popular choice. Offers limited liability, higher credibility, and is scalable. Requires at least one local resident director (Singaporean, PR, or valid pass holder).
Tip: Most foreign entrepreneurs choose Pte Ltd for flexibility, credibility, and easier access to EP applications.
3. Apply for the Right Pass
Once your company is registered, apply for the appropriate work pass that matches your role:
- LOC: For sole proprietors, partners, or directors with ≥30% shareholding. Allows you to run the business actively.
- Employment Pass (EP): If you incorporate a Pte Ltd and want to actively work in it. Your company becomes your sponsor. MOM will assess your salary, role, and the company’s viability.
- EntrePass: If you’re building an innovative startup (tech, R&D, or venture-backed). Requires a solid business plan and may need external investment support.
Tip: EP and EntrePass applications are more stringent and competitive than LOC, but they give you more flexibility if you plan to grow and scale.
4. Hire a Local Employee (If on LOC)
If you’re operating under an LOC, hiring a local employee is not optional — it’s required for LOC renewal.
Conditions:
- At least one Singapore Citizen or Permanent Resident must be employed.
- The local hire must earn at least the prevailing Local Qualifying Salary.
- You must make CPF contributions for at least three consecutive months before renewal.
Tip: Factor in manpower costs when planning your business finances, especially if you’re a small business owner.
5. Comply with Regulations
Running a business in Singapore comes with ongoing compliance obligations:
- Annual Returns: File yearly with ACRA to maintain good standing.
- Tax Filing: Submit corporate tax returns to IRAS.
- Employment Obligations: If you hire staff, ensure CPF contributions, proper employment contracts, and adherence to MOM guidelines.
- Pass Renewal Compliance: For LOC, ensure your local employee requirement is met; for EP/EntrePass, maintain company performance standards as set by MOM.
Tip: Many DP holders engage a corporate service provider to handle compliance, payroll, and pass applications — letting them focus on growing the business.
With these steps, you’ll have a clear roadmap to move from DP holder to business owner in Singapore.
Quick Comparison Table
| Pathway | Eligibility | Visa/Pass Needed | Renewal Requirements | Suitable For |
| LOC | Sole proprietor, partner, or ≥30% shareholder-director | LOC | Must hire ≥1 local (salary + CPF ×3 months) | Freelance, small business, boutique services |
| Employment Pass | Pte Ltd with an active director role | EP | Salary + company performance criteria | Consulting, agencies, e-commerce, trading |
| EntrePass | Innovative, high-tech, or venture-backed businesses | EntrePass | Business milestones, funding, and local job creation | Tech startups, biotech, green solutions |
| Passive Shareholder | Investment only, no active management | None | None | Silent investor, joint ventures, equity holder |
Low-Investment Business Ideas for DP Holders in Singapore
If you’re a Dependant Pass (DP) holder looking to start small, the Letter of Consent (LOC) route can be ideal. It allows you to run a business as a sole proprietor, partner, or director with at least 30% shareholding — without needing heavy startup capital.
Here are some practical, low-investment business ideas that DP holders can realistically pursue:
1. Online Consulting Services
If you have expertise in areas like marketing, HR, finance, IT, or career coaching, you can offer consulting services remotely. All you need is a laptop, an internet connection, and professional branding to get started.
Example: Business coaching sessions, digital marketing consulting, or financial planning advisory.
2. Freelance Creative Services
Creative skills are in demand in Singapore’s thriving business scene. You can work as a freelance graphic designer, copywriter, content creator, or web designer.
Example: Designing logos and websites for SMEs, or writing marketing content for startups.
3. Digital Storefront or E-Commerce
With platforms like Shopify, Lazada, Shopee, or Carousell, you can set up an online shop with minimal upfront cost. Products could be handmade crafts, eco-friendly items, or imported goods.
Example: Selling customized stationery, skincare products, or sustainable lifestyle items.
4. Online Tutoring or Coaching
Education is a priority in Singapore, and parents are willing to invest in quality learning. If you have teaching experience, you can provide online tutoring in academic subjects, languages, or even enrichment areas like music and coding.
Example: One-on-one English lessons, coding classes for kids, or music coaching via Zoom.
5. Social Media Management & Content Creation
Businesses in Singapore often outsource their social media. If you’re skilled in creating engaging posts, managing ads, or growing online communities, you can run a digital marketing micro-agency.
Example: Managing Instagram and TikTok accounts for cafes, salons, or boutique shops.
6. Fitness, Wellness, or Lifestyle Coaching
If you’re certified in fitness training, yoga, nutrition, or wellness, you can offer classes and coaching either online or in-person. Singapore’s wellness industry is growing, making this a promising niche.
Example: Virtual yoga classes, meal planning services, or personal training sessions.
7. Handmade Crafts or Art
For creative hobbyists, turning your passion into a business is easier than ever. Selling handmade candles, jewelry, home décor, or paintings can be done via online platforms or weekend pop-up markets.
Example: An Etsy store for handcrafted jewelry or locally themed art pieces.
8. Virtual Assistant Services
Busy professionals and SMEs often need help with scheduling, admin work, research, or customer support. As a virtual assistant, you can provide flexible support services without a large investment.
Example: Managing emails, bookings, or CRM systems for small business owners.
These businesses are low-cost, flexible, and can be scaled gradually. Best of all, many can be run from home or online, which reduces overheads and makes them DP-friendly under the LOC framework.
Challenges to Consider
- Visa approvals are competitive: MOM carefully evaluates applications.
- Capital requirements: Some passes may require showing adequate business funds.
- Local director requirement: All companies must have at least one locally resident director.
- Renewal obligations: LOC holders must hire a local; EP/EntrePass holders must show business viability.
Final Thoughts
Starting a business as a Dependant Pass holder in Singapore is possible, but requires navigating the right framework.
- If you qualify, the LOC is the most straightforward way to run a business.
- For larger ventures, incorporating a company and applying for an Employment Pass gives you more flexibility.
- If you’re pursuing a high-growth, innovative idea, the EntrePass is the best route.
- And if you prefer staying in the background, you can remain a passive shareholder.
With the right strategy, support, and compliance, you can turn your business idea into a reality in one of the world’s most dynamic economies.
Considering starting a company as a DP holder? It’s highly advisable to engage a corporate service provider in Singapore who can guide you through incorporation, pass applications, and compliance requirements.
