Can EP holders Serve As Shareholders & Directors?

2023-10-03

In Singapore, Employment Pass (EP) holders have the opportunity to play a significant role in the corporate world by becoming shareholders and directors of companies. This article will delve into the specifics of how EP holders can pursue these positions, and we'll also discuss the relevant regulations and conditions.

Can EP Holders Become Company Shareholders?

Yes, EP holders can indeed hold shares in Singapore-registered companies. There are two main scenarios to consider:

1.Maintaining the Existing EP: EP holders are allowed to hold shares in other companies while keeping their current EP status.

2.Registering a New Company: EP holders can also establish their own company and apply for an Entrepreneur Pass (EntrePass) while maintaining ownership of company shares.

Can EP Holders Become Company Directors?

EP holders can also serve as directors of companies in Singapore, subject to certain conditions. Here are the two primary scenarios:

1. Dual Directorship with Current Employment: EP holders can take on directorship roles in another company (second employer) while retaining their EP status with their primary employer. However, they need to apply for a Letter of Consent (LOC) from the Ministry of Manpower.

The LOC is typically granted to EP holders intending to serve as directors in related companies, such as the holding company of their primary employer or a subsidiary.This approval can extend to scenarios involving unrelated companies, such as fund entities, if it is related to the EP holder's current occupation.

When applying for an LOC, the second employer must provide an organizational chart of the company to explain its relationship with the EP holder's primary employer.

2. Serving as Director in Their Own Company: EP holders can also serve as directors in companies they have registered themselves.

In summary, Employment Pass (EP) holders in Singapore can indeed become shareholders and directors of companies, provided they meet the relevant conditions and adhere to the regulations set by the Ministry of Manpower. This flexibility allows EP holders to actively participate in the business landscape of Singapore, either by investing in existing companies or by establishing their own ventures.

Established in 2011 and officially registered with the Ministry of Manpower, Singapore Skyline Business Singapore is your trusted partner for work pass and PR applications. Our experienced team specializes in Entrepreneur Pass (EP), S Pass (SP), Work Permit (WP), self-employed EP, and Dependant Pass (DP)/Long-Term Visit Pass (LTVP) applications. For expert assistance, feel free to contact us via WeChat (WeChat ID: Skylline-Ng) or WhatsApp us at +65-91328885.

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