Acting As An ACRA Registered Director On A Work Pass

Photo by Meriç Dağlı on Unsplash

It’s an exciting time to be growing businesses in Singapore, and we are getting more and more questions about whether a foreigner can become a director of a company their EP is not tied to.

The eligibility criteria for an EP is becoming increasingly stringent, and no one wants to risk losing their work pass by engaging in work on the side. 

But the good news is, you can apply to become a director of another company if you can prove it is linked to your current employer through shareholding. An easy example of this is a spin-off of your current employer’s company, or a new company that has the same group of shareholders.

The first step is to ask your current employer to approve the new directorship. This is because being a director is considered work, so your employer needs to consent to your involvement in another company.

Once you are sure of this, you can apply for a Letter of Consent (LOC) to carry out your directorship duties. You might be thinking, but I thought the MOM had stopped issuing LOCs? This is true, but the exception is for company directorship.

If and when your LOC is approved, you can then register your directorship position with ACRA, and you will then need to ensure you carry out your duties in line with the Companies Act.

What about working as a director of a company that’s unrelated to your employer? Things get a little more complicated if the secondary directorship is for an unrelated company. 

These applications are granted on a case-by-case basis, and are generally more likely to be approved if you are very senior, or if you have a significant ownership stake in the new company. 

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Each case is approved on its own merits - our friendly team at Accela is happy to help you with your application. Get in touch if you’d like to discuss further: [email protected].